Credit scoring model for the small and micro sector: Case of Equity Bank (K) Ltd.

Josephine Kibe, Fordham University

Abstract

The objective of the study was to develop a credit scoring model for the SME sector at Equity Bank Kenya Ltd. Using 38,923 records, a logistic regression model was developed and the categorical variables were included in the model using the weight of evidence and the dummy variables approach. The results showed that the variables that were important in determining whether a client will default are; the amount borrowed the marital status and gender, the client's residential status, the number of guarantors and the purpose of the loan.^

Subject Area

Economics, General|Business Administration, Banking

Recommended Citation

Kibe, Josephine, "Credit scoring model for the small and micro sector: Case of Equity Bank (K) Ltd." (2012). ETD Collection for Fordham University. AAI3563403.
https://fordham.bepress.com/dissertations/AAI3563403

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