Factors Of Unsecured Small Loan Defaults

Loans played an important role in the national economy.The demand for unsecured credit products is growing day by day.However,unsecured credit,without collateral,so the the risk is high,if there is no scientific approach to risk management,default rate will be uncontrolled.We should study the problem from multiple perspectives,combined with the latest science and technology,in order to make the default rate controlled to the minimum.This article will focus on studying unsecured loans default factors,and advise how to conduct risk management according to these unsecured loans default factors.This article will focus on the analysis of the determinants and indicators of whether the customer's normal payment,and give some real cases of default,start on how to carry on unsecured credit risk management,and discuss the problem from multiple perspectives according to the risk of the customer's own qualifications and the industry risk.Combined with some default data,making several charts can make default data obvious.From these case studies,we can find out the important factors of default.Combining with some real malicious fraud cases,I can make advice on preventing malicious fraud.After researching theory and case analysis,we can draw some factors that can lead to customer default,and the defect on the loan approval policy of financial institutions,the agency should correct these shortcomings,and the financial institutions can develop more scientific credit policy according to these customers own characteristics as well.The financial institutions had better make stringent requirements for Credit Examiners,and tell them all related precautions in order to control the default rate to the minimum.Finally,we combine GBICC review score to audit loan.GBICC review score can be regarded as useful,but there are also some problems.Thus,we also advise that GBICC review score can be improved as well.By concluding the credit default cases of AB company,we calculate the proportion of various factors.From a business perspective,we can draw some conclusions: For all customers,with or without real estate,and credit record are very important indicators to judge their qualifications.For salaried people,the emphasis on the manner of its payroll and its revenue,income is the most important evaluation index,only a small percentage of customers have fair income and these customers are belonging to bank payroll.The remaining customers are belonging to low or not investigated income.For private owners,the emphasis on the status of its operations,as well as whether their company industry is a high-risk industry...