Analysis of Lending to Prospective Debtors with a Risk-Based Approach

Abstract

This article discusses the analysis of lending to prospective borrowers using a risk-based approach. The main objective of this study is to identify the factors that influence lending decisions and develop strategies that are more effective in evaluating credit risk. This study uses a literature study approach with a qualitative approach. Data collection by interviews with lender institutions. The results of the study show that there are several factors that have a significant influence on the decision to grant a loan. These factors include the prospective debtor's credit profile, payment history, debt-to-income ratio, and work background. In addition, there are also macroeconomic factors that need to be considered, such as market conditions and interest rates. The need for a strict policy in lending requires clear guidelines in determining the terms of lending, including the maximum loan limit and payment terms. Clear policies help reduce the risk of default and ensure fairness in the lending process. In the era of increasingly advanced information technology, the use of sophisticated data and risk analysis methods is the key to making the right decisions and reducing credit effectively. In conclusion, based analysis of lending to prospective debtors plays an important role in maintaining the financial stability of financial institutions and preventing unwanted credit risks.