Loan default in Ghana linked to owner's extra income and underfunding.
The study looked at why businesses in Ghana default on loans. They analyzed factors like the owner's income, borrowing habits, loan terms, and how well the loan was funded. They found that the purpose of the loan, underfunding, and borrowing for other reasons were the biggest predictors of default. Financial institutions should pay attention to these factors when giving out loans to reduce the risk of default.