FACTORS AFFECTING THE ABILITY TO REFUND DEBTS OF NEAR-POOR HOUSEHOLDS LOANING AT THE SOCIAL POLICY BANK OF BINH DUONG PROVINCE

Abstract

Through testing 7 hypotheses, the research results have solved 2 research objectives: The first is to identify factors affecting the ability to repay debt on time of near-poor households at the Social Policy Bank of Binh Duong Province; The second is to evaluate the influence of each of these factors on the ability of near-poor households to repay debt on time. The study uses a data sample of 270 near-poor customers with outstanding loans at the Social Policy Bank of Binh Duong province. The research results are as follows: There are two factors with an inverse relationship: Borrower’s age (Tuoi) and Income after loan (Thunhap); There are 4 factors that have a positive relationship: Loan interest rate (Laisuat), Industry (Nganh), Professional qualifications (Trinhdo), Number of members with income in the family (Thanhvien) who can repay the debt on time of near-poor households borrowing from the Social Policy Bank of Binh Duong province; 1 factor eliminated due to lack of statistical significance is Purpose of loan use (Mucdich). Based on the results achieved, the author has proposed policy implications to improve the ability of near-poor households to repay debt on time, the most important of which are recommendations for banks.