Title: Differentiating the Guaranteed Rate: A Way to Improve the Sunshine Loan Program
Abstract: “The uniformly high guaranteed rate currently provided by ‘Sunshine Loan’ through non-bank depository institutions does not incentivize the financial institutions to put enough efforts into the preliminary screening or follow-up management. If the policymakers are to enhance the capacity of non-bank depository institutions in dealing with subprime unsecured personal loans (microcredit), they should differentiate the guaranteed rate according to the credit rating, the loan amount, and the number of loan issued to the same person.”
Publication Year: 2015
Publication Date: 2015-04-03
Language: en
Type: article
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Cited By Count: 1
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