THE FACTORS AFFECTING TO PROBABILITY DEBTORS BECOMING NON PERFORMING LOAN OF GOVERNMENT BANK, PHUPAMAN BRANCH, KHON KAEN

Abstract

The purposes of this study were to 1) study the general characteristics of subprime debtors and 2) study the factors affected the probability of transforming debtors to non-performing loan. The study was conducted by collecting information from retail loan files and records of loan repayment of Government Bank, Phupaman branch, Khon Kaen. The samples of this study were 300 debtors who categorized as subprime debtors in 31 January 2018, which was divided into 150 debtors with normal debt and 150 debtors with non-performing loan. The study used Logistic Regression Analysis model to analyze the information at the confidence level of 95%. The results of the study showed that the factors affected the probability of transforming debtors to non-performing loan were: career, total loan credit, time of loan, and type of collateral. On the contrary, the study found that the factors in the part of gender, age, marital status, level of education, income, number of children, and payment term did not affect the probability of transforming debtors to non-performing loan. Moreover, the accuracy test of the model revealed 72.67% accurate.