The Influence of character, capacity, collateral and experience of credit officers on the likelihood of loan approval for smes

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Date
2007
Authors
Md Mustafa, Suraiya
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Abstract
This research studied the effect of character, capacity and collateral on the likelihood of loan approval for SMEs. A theoretical framework was developed to test character, capacity and collateral as critical success factors for likelihood of loan approval. There were three variables in the proposed model that is character, capacity and collateral together with credit experience as moderator variable. Hypotheses were tested with respondents received from loan creditor's inclusive commercial bank, CGC and SME Bank. It was found out that all variables had a significant effect on the likelihood of the loan to be approved by the bank from the credit officer perspective.
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Keywords
Collateral , Likelihood , Loan approval
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