The Significance of Socioeconomic Factors on Personal Loan Decision (A Study of Consumer Banking in Local Private Banks in Pakistan)

This paper explores the influences of the approved results of loans cases, the loan applicants' socioeconomic attributes in the decision of personal loan. The results can improve the credit quality and avoid the misjudgment of screening personal loan customers and also establish a better personal loan risk management forecasting model. The main purpose of the present paper was to evaluate significance of loan applicant socioeconomic attributes on personal loan decision in the local private commercial banks of Pakistan. The statistical techniques, descriptive and logistic regression were used. The model identified that out of six independent variables, region, residence status and year with the current organization have significant impact on personal loan decision