Determinants of Loan Repayment Behaviour of Bank Borrowers - A Relative Study with evidence from Bengaluru.

The present study aimed to review the various factorsthat influence the credit score and find the effect of credit score and other financial aspects of an individual's loan repayment and whether they had ever defaulted. Primary data was collected through a questionnaire from 516 customers of twelve different banks in Bengal um city during July-August 2019 using a stratified sampling method. The results revealed that credit score, loan amount, and loan repayment amount did not affect the loan repayment behaviour of individuals. However, 'the type of loan obtained' and 'the kind of bank the loan is received' significantly influence individuals' loan repayment behaviour. Home loans, education loans, other loans and the loan obtained from a foreign bank were particularly significant in affecting the loan repayment of individuals. The high beta value for other loans indicates that most individuals who have no other loans have defaulted in repaying their dues. [ABSTRACT FROM AUTHOR]

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