A Critical Study on Determinants of Loan Defaults in Some Selected Credit Unions in Kumasi Metropolis of Ghana | Chapter 9 | Insights into Economics and Management Vol. 6
In Ghana's microfinance industry, credit unions play a critical role. They are not only well-established in financial intermediation, but they also give their members better terms and conditions on financial products and services than banks and other financial institutions. Credit unions give their members the ability to access loan facilities at a lower interest rate and with more favourable terms and conditions, such as flexible repayment terms, than banks and other financial institutions. The prevalence of loan defaults or non-performing loans has put Credit Unions' long-term stability in jeopardy. In Credit Unions, diagnosing the causes of loan defaults has become crucial to successful credit risk management practises. The analysis was focused on primary data. 244 Credit Union participants were selected using a targeted sampling methodology. Data was obtained using questionnaires, and a logistic regression model was used. For data analysis, the research used Statistical Pro...