Loan default in Ghana linked to owner's extra income and underfunding
The study looked at factors that determine business loan default in Ghana. They found that things like the purpose of the loan, underfunding, and borrowers using the money for something else can significantly increase the chances of default. The study used data from a bank in Ghana and found that these factors can predict up to 78.5% of loan defaults. Financial institutions should pay attention to the characteristics of the borrower, lender, and loan itself to reduce the risk of default.