Demographic factors and repayment performance of NBFI customers in Kuching

The main objective of this paper is to investigate whether demographic factors affect repayment performance of the non-bank financial institution customers in Kuching, Sarawak. Data required for analysis are collected using structured questionnaire from the existing housing loan, personal loan and business loan customers of non-bank financial institutions in Kuching. Findings showed that 55% of the respondents did not pay on time. Meanwhile, 62% of the respondents are male while 38% are female. Majority of the respondents (67%) fall in the age group of 30–39. In terms of education, 70% of the respondents possess a diploma or a degree. Furthermore, 62% of the sample is either working for private companies or self-employed while 38% are government servants. Results of the logistic regression analysis showed that among all the demographic factors tested, only distance has a predictive power over repayment performance. Each one unit increase in distance increased the odds of a respondent not paying his or her loan by 0.867.