Granting and managing loans for micro-entrepreneurs: New developments and practical experiences

Bravo C.; Maldonado S.; Weber R.

Abstract

We present a methodology to grant and follow-up credits for micro-entrepreneurs. This segment of grantees is very relevant for many economies, especially in developing countries, but shows a behavior different to that of classical consumers where established credit scoring systems exist. Parts of our methodology follow a proven procedure we have applied successfully in several credit scoring projects. Other parts, such as cut-off point construction and model follow-up, however, had to be developed and constitute original contributions of the present paper. The results from two credit scoring projects we developed in Chile, one for a private bank and one for a governmental credit granting institution, provide interesting insights into micro-entrepreneurs' repayment behavior which could also be interesting for the respective segment in countries with similar characteristics. (C) 2012 Elsevier B.V. All rights reserved.

Más información

Título según WOS: Granting and managing loans for micro-entrepreneurs: New developments and practical experiences
Título según SCOPUS: Granting and managing loans for micro-entrepreneurs: New developments and practical experiences
Título de la Revista: EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volumen: 227
Número: 2
Editorial: Elsevier
Fecha de publicación: 2013
Página de inicio: 358
Página final: 366
Idioma: English
URL: http://linkinghub.elsevier.com/retrieve/pii/S0377221712008053
DOI:

10.1016/j.ejor.2012.10.040

Notas: ISI, SCOPUS