Conceptual Framework

Loan
Characteristics

Borrowers Attitude

Financial Literacy Loan

Repayment
Performance
Creditworthiness

Credit Risk
Control

Collection Policy

Objectives
▸ To analyze the impact of customers characteristics on loan repayment performance
▸ To examine the impact of financial literacy on the loan repayment performance
▸ To find out the effect of loan characteristics on loan repayment performance
▸ To determine the level of borrowers attitude towards creditworthiness
▸ To analyze whether the creditworthiness of the customers influences loan
repayment performance
▸ To evaluate the effect of credit risk control on loan repayment performance
▸ To evaluate the effect of collection policy on loan repayment performance

Research Questions
▸ What is the impact of customer’s characteristics on loan repayment performance?
▸ What is the relationship between the level of financial literacy among borrowers
and their loan repayment performance?
▸ How loan characteristics impact borrowers' loan repayment performance?
▸ How does borrowers’ attitude influence their loan repayment behaviour?
 ▸ To what extent does the creditworthiness of customers affect their loan repayment
performance?
▸ What is the effect of credit risk control influences the loan repayment
performance?
▸ What is the effect of collection policy on loan repayment performance?

Questionnaire:
Demographic Profile:
1. Age
2. Gender
3. Marital Status
4. Education Qualification
5. Occupation
6. Income
7. Type of loan taken
8. Loan Size
9. Loan Period

Loan Characteristics
1. Amount of loan applied initially
2. Amount of loan awarded after procedures
3. Duration given for the loan to be repaid
4. Size of loan sanctioned
5. Terms and conditions of your loan agreement with the cooperative bank
6. Interest rate on your loan amount provided

Borrower Attitudes
1. Ready to face the risk
2. Are you confident in your ability to manage your loan payments
3. How do you feel about your current loan pending
4. By maintaining a good repayment record and avoid defaulting on your loans
5. Borrowing money from the cooperative bank is a positive decision
6. The consequences of missing a loan payment, such as additional fees

Financial Literacy
1. Your understanding of financial concepts such as interest rates and loan terms
2. Awareness of the potential risk elements present in loans
3. Knowledge on loans and other credit offers
4. How satisfied you are with capable of making wise borrowing decisions
5. Ability to recognize risk and avoid that may impact you loan repayment
performance

Creditworthiness
1. Record of past borrowing behavior
2. Having good credit helps you get better loan terms and interest rates
3. Transparency regarding how creditworthiness impacts loan terms and approval
decisions
4. Improving creditworthiness will impact overall financial well-being
5. Communication regarding changes in loan terms or credit conditions that may
affect your creditworthiness

Collection Policy
1. The collecting policy of the bank encourages timely loan repayments
2. The collecting policy of my bank is standard
3. There is a strict follow-up to the collection policy
4. The collection policy is modified on occasion when needed
5. Calls and letters are the primary means of following up on past-due amount
6. The collection policy of the bank helps borrowers in understanding the
responsibilities they have in regard to repayment

Credit Risk Control

1. In your Bank before applying for a loan, each and every borrower at the bank must
have a Saving Bank account
2. Flexible repayment terms let you repay loans better at your bank
3. Does the bank’s credit risk control method greatly add to my confidence in
meeting my loan repayment performance
4. Do you think the transparency of the bank's credit risk control methods is good
5. Do you agree the cooperative bank communicates its credit risk control policies
and processes in an open manner

Loan Repayment Performance

1. Your performance on repayments on your loans
2. Consistency and punctuality in making loan payments
3. Are you satisfied with sufficient grace period
4. Your ability to make timely loan payments
5. Are you satisfied with your current loan repayment performance
6. Does your loan repayment performance affect your overall financial well-being