Small Loan Company Personal Credit Risk Assessment Research

With China’s rapid economic development, the development of rural get more attention. However, due to the dual market in China, and priority development of the city, making financial sector (as an important support for economic development) in rural areas shrinking. The existing rural financial system difficult to meet the financial needs of rural areas, making the private lending in rural areas become increasingly common, but because of its lack of supervision, so it is problematic. At the same time, with the reform and opening, someone get rich first while have a lot of money, but no place to invest, small credit company is exactly an unique mode, it sets up a bridge between funds and lack of funds, so funds can flow through the legal channels. But the environmental of small credit companies where it birth determine its risk than the general financial institutions because of the relatively high-quality customer has been monopolized by existing financial institutions, so the majority clients of the company is difficult to obtain loans from the existing financial institutions. Therefore, small credit companies need to establish a credit rating system meet their own conditions to reduce potential credit risk.By drawing on previous evaluation and control of credit risk, we can found out that the modern credit risk assessment model, such as the KMV and others is relatively complex, not suitable for the actual situation of small credit companies. At the same time, the credit scoring models, such as the Logistic model and Probit model is relatively simple to build, can handle both quantitative and qualitative data. Another, with previous research results, in the personal credit and small enterprise credit evaluation, the accuracy of the Logistic model is between54%to90%, therefore we believe that through the integrated use of these two models can identify the customer. Therefore, the Logistic model is selected to evaluating credit, and in order to improve the stability of evaluation results, select another model Probit Logistic model which similar to the Logistic model, a combination of the two together constitute the model of evaluation results to improve the stability, the paper with the specific case of small credit companies obtained a preliminary model, empirical model identification card this group of about70%accuracy rate and can provide a relatively reliable basis for the small credit companies to judge. This paper argues improve professional conduct and personal ability of credit control staff is necessary.