Manuscript Title:

DETERMINANTS OF CONSUMER CREDIT ACCESSIBILITY FROM FINANCIAL COMPANIES: AN EMPIRICAL STUDY IN A PROVINCE OF MEKONG RIVER DELTA, VIETNAM

Author:

LONG HAU LE, TAN NGHIEM LE, VIET THANH TRUC TRAN, BICH TUYEN DUONG, THI THANH TAM NGUYEN

DOI Number:

DOI:10.17605/OSF.IO/XPDGJ

Published : 2023-01-23

About the author(s)

1. LONG HAU LE - Associate Professor, Ph.D., School of Economics, Can Tho University, Can Tho, Vietnam.
2. TAN NGHIEM LE - Ph.D., School of Economics, Can Tho University, Can Tho, Vietnam.
3. VIET THANH TRUC TRAN - Lecturer, School of Economics, Can Tho University, Can Tho, Vietnam.
4. BICH TUYEN DUONG - Lecturer, School of Economics, Nam Can Tho University, Vietnam.
5. THI THANH TAM NGUYEN - Lecturer, School of Economics, Nam Can Tho University, Vietnam.

Full Text : PDF

Abstract

In recent years, consumer credit activity has become a topic of broad public interest in Vietnam as the demand for consumer credit is rapidly increasing in both urban and rural areas. In Vietnam, many empirical papers have focused on investigating the determinants of consumer credit accessibility from commercial banks, but the prior studies on the factors affecting consumer credit accessibility from financial companies are still limited. Hence, the aim of this paper was to analyze the determinant factors of the consumer credit accessibility from financial companies of individual borrowers in Vinh Long province, Vietnam. Based on the primary data of 141 individual borrowers in Vinh Long province, the study applied Probit regression model to test the proposed hypotheses. The research results showed that age, education level, marital status, working area and access to credit information positively affect the borrower's ability to access consumer loans. Based on the empirical findings, the authors proposed several recommendations to increase the consumer credit accessibility from financial companies of individual borrowers in Vinh Long province.


Keywords

Credit accessibility; Consumer loan; Financial company; Individual borrower; Probit regression.