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Determinants of Auto Loan Approval from Finance House- Evidence in Taiwan
Auto loan approval
|Issue Date: ||2022-08-01 18:46:16 (UTC+8)|
The auto loan market in Taiwan is currently highly competitive. Since banks were driven by the benefit, they shifted to consumer loans as the main market. The balance of consumer loans has continued to boost, and the balance of auto loans has also increased. Financial leasing companies that undertake auto loans have launched different projects to loose the loan-to-value ratio and attempt to capture the maximum amount of performance. However, higher profits mean higher risks. Therefore, how to effectively increase the balance and properly check the credit quality is the focus of each financial leasing company.
This study investigates how finance institutions approve the auto loan for both individual and enterprise applicants and examines variables that explain auto loan approval. This study adopts the Logit model to conduct the empirical analysis on the effect of each explanatory variable on the probability of approving the auto loan. We provide evidence of auto loan applicants’ characteristics, loan contract contexts, collateral characteristics, and the impact on auto loan approvals since the COVID-19 pandemic. The 25 independent variables used in this study reveal available information during the credit granting decision.
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|Source URI: ||http://thesis.lib.nccu.edu.tw/record/#G0105926005|
|Data Type: ||thesis|
|Appears in Collections:||[亞太研究英語博/碩士學位學程(IDAS/IMAS)] 學位論文|
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