Table 2.

Summary statistics for continuous variables

VariableDescriptionMeanStd. dev.MinMax
Requested amountLoan amount requested by the customer ($)27,55214,0897,500357,046
Cash down paymentAmount paid up front by the customer ($)1,9713,9090120,000
Loan-to-value ratio (LTV ratio)Loan amount ($)/vehicle value ($)1.430.440.166.08
Total debt service ratio (TDSR)Annual debt payments/gross income0.320.180.018.61
Vehicle ageAge of vehicle (years)3.721.850.0010.00
IncomeCustomer monthly income (monthly $)5,1323,813099,000
AmortizationAmortization of loan (months)65.7716.9012.00240.00
Customer rateCustomer interest rate (%)6.090.873.987.97
DifferenceRequested amount ($) − Approved amount ($)−8773,581−257,04628,138
Agent incentiveCommission paid to dealer ($)926589197,957
Cost of funds (COF)Interest paid by financial institutions for funds (%)1.750.130.942.20
Probability of default (PD)Probability that debtor is unable to repay debt (%)4.414.990.0312.00
Loss given default (LGD)Percentage of loan that is lost when default occurs (%)35.5417.3620.0060.00
Source: Authors’ own work

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