International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 10, Issue 2 (February 2023), Pages: 90-98

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 Original Research Paper

 Accessibility to consumer credit by individual customers in financial companies: A case in the Mekong Delta

 Author(s): 

 Tan Nghiem Le 1, *, Long Hau Le 2, Bich Tuyen Duong 3, Viet Thanh Truc Tran 2, Thi Thanh Tam Nguyen 3

 Affiliation(s):

 1Department of Business Administration, School of Economics, Can Tho University, Can Tho, Vietnam
 2Department of Finance and Banking, School of Economics, Can Tho University, Can Tho, Vietnam
 3School of Economics, Nam Can Tho University, Can Tho, Vietnam

  Full Text - PDF          XML

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0001-8332-6388

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2023.02.012

 Abstract:

Consumer credit has grown rapidly in recent years with a variety of products from banks and financial companies. However, previous studies in Vietnam only approached factors affecting consumer lending decisions and credit access at commercial banks. The aim of this study is to determine the factors affecting the accessibility of consumer loans to individual customers at financial companies in the Mekong Delta. Data were collected by directly interviewing 200 people who applied for loans at financial companies (not banks). A pre-designed questionnaire and a random sampling method were used. According to the analysis results of the binary Logit regression model, male borrowers will have more difficulty in accessing consumer credit at financial companies. This result is in contrast to the results shown in some studies conducted at commercial banks. On the other hand, the positive impact on individuals' access to consumer loans of the variables of education level, income, and form of receiving income reinforces the results of previous studies on this topic. Besides, the higher the loan amount, the lower the probability of loan approval. From there, the author has proposed recommendations to improve access to consumer loans at financial companies and improve consumer credit products in the Mekong Delta.

 © 2022 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Accessibility to formal credit, Consumer credit, Financial companies, Individual customers, Logistic regression

 Article History: Received 31 July 2022, Received in revised form 28 October 2022, Accepted 1 November 2022

 Acknowledgment 

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Le TN, Le LH, Duong BT, Tran VTT, and Nguyen TTT (2023). Accessibility to consumer credit by individual customers in financial companies: A case in the Mekong Delta. International Journal of Advanced and Applied Sciences, 10(2): 90-98

 Permanent Link to this page

 Figures

 Fig. 1 

 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5

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