We apologize for a recent technical issue with our email system, which temporarily affected account activations. Accounts have now been activated. Authors may proceed with paper submissions. PhDFocusTM
CFP last date
20 December 2024
Call for Paper
January Edition
IJCA solicits high quality original research papers for the upcoming January edition of the journal. The last date of research paper submission is 20 December 2024

Submit your paper
Know more
The week's pick
Responsive image
Improved Shuffled Frog Leaping Algorithm with Self-Adaptive Shuffling for Fuzzy Logic PD+G Controller Optimization in Robotic Manipulators

Duc Hoang Nguyen
Random Articles
Reseach Article

Fuzzy Logic Approach to Credit Scoring for Micro Finance in Ghana: A Case Study of KWIQPLUS Money Lending

by Umar Farouk Ibn Abdulrahman, Joseph Kobina Panford, James Ben Hayfron-acquah
journal cover thumbnail

International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 94 - Number 8
Year of Publication: 2014
Authors: Umar Farouk Ibn Abdulrahman, Joseph Kobina Panford, James Ben Hayfron-acquah
10.5120/16362-5772

Umar Farouk Ibn Abdulrahman, Joseph Kobina Panford, James Ben Hayfron-acquah . Fuzzy Logic Approach to Credit Scoring for Micro Finance in Ghana: A Case Study of KWIQPLUS Money Lending. International Journal of Computer Applications. 94, 8 ( May 2014), 11-18. DOI=10.5120/16362-5772

@article{ 10.5120/16362-5772,
author = { Umar Farouk Ibn Abdulrahman, Joseph Kobina Panford, James Ben Hayfron-acquah },
title = { Fuzzy Logic Approach to Credit Scoring for Micro Finance in Ghana: A Case Study of KWIQPLUS Money Lending },
journal = { International Journal of Computer Applications },
issue_date = { May 2014 },
volume = { 94 },
number = { 8 },
month = { May },
year = { 2014 },
issn = { 0975-8887 },
pages = { 11-18 },
numpages = {9},
url = { https://ijcaonline.org/archives/volume94/number8/16362-5772/ },
doi = { 10.5120/16362-5772 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2024-02-06T22:17:05.988940+05:30
%A Umar Farouk Ibn Abdulrahman
%A Joseph Kobina Panford
%A James Ben Hayfron-acquah
%T Fuzzy Logic Approach to Credit Scoring for Micro Finance in Ghana: A Case Study of KWIQPLUS Money Lending
%J International Journal of Computer Applications
%@ 0975-8887
%V 94
%N 8
%P 11-18
%D 2014
%I Foundation of Computer Science (FCS), NY, USA
Abstract

This paper presents a fuzzy logic approach to credit scoring for Micro Finance. The research was necessitated as a result of the inability of many Micro Finance Institutions in Ghana to recover loans from their clients which is leading to their eventual collapse. It has been presumed that proper evaluations are not done by the Micro Finance Institutions thereby advancing loans to wrongful applicants. The main objective of this research was therefore to provide a Fuzzy approach to credit scoring in order to reduce the loan default among the Micro-Finance Institutions so as to ensure their continuous existence. The research used three Fuzzy Input variables with their triangular membership function, an Output variable and twenty-seven fuzzy rules in the development of an evaluation model.

References
  1. Gyamfi, G. D. (2012), Assessing the effectiveness of credit risk management techniques of microfinance firms in Accra, Journal of Science and Technology, Vol. 32, No. 1 (2012), pp 96-103
  2. Steel, W. , Andah, F. , David, O. (2004), Rural and Micro Finance Regulation in Ghana: Implications for Development and Performance of the Industry, http://www. worldbank. org/afr/wps/wp49. pdf (Accessed on 31-12-2013).
  3. Chen, L-H. , Chiou, T-W, (1999), A fuzzy credit rating approach for commercial loans; A Taiwan case. Omega International Journal of Management Science 27(1999), 407-419,1999.
  4. Bazmara, A. Donighi, S. S. (2013, Classification of Bank Customers for Granting Banking Facility Using Fuzzy Expert System Based on Rules Extracted from the Banking Data. J. Basic. Appl. Sci. Res. , 3(12)379-384, 2013.
  5. Duc, V. H. , Thien D. N(2013), A new approach to determining credit ratings and its applications to Vietnam's listed firms http://www. murdoch. edu. au/School- of-Management-and- Governance/_document/Australian-Conference-of- Economists/A-new-approach-to-determining-credit-rating- and-its-application. pdf. (Accessed on 03-02-2014)
  6. Nosratabadi, E. H. , Nadali, A. Pourdarab, S. (2012) Credit Assessment of Bank Customers by a Fuzzy Expert System Based on Rules Extracted from Association Rules, International Journal of Machine Learning and Computing, Vol. 2, No. 5.
  7. Shanmugapriya, K. (2012), Domain Driven Classification of Customer Credit Data for Intelligent Credit Scoring using Fuzzy set and MC2, International Journal of Computer and Information Technology (ISSN: 2279 – 0764) Volume 01– Issue 02, November 2012.
  8. Nosratabadi, E. H. , Nadali, A. Pourdarab, S. (2012) Credit Assessment of Bank Customers by a Fuzzy Expert System Based on Rules Extracted from Association Rules, International Journal of Machine Learning and Computing, Vol. 2, No. 5.
  9. Shanmugapriya, K. (2012), Domain Driven Classification of Customer Credit Data for Intelligent Credit Scoring using Fuzzy set and MC2, International Journal of Computer and Information Technology (ISSN: 2279 – 0764) Volume 01– Issue 02, November 2012.
  10. Timothy, J. R. (2010), Fuzzy logic with Engineering Applications, Third Edition © 2010 John Wiley & Sons, Ltd. ISBN: 978-0-470-74376-8
  11. Fuzzy- Inference, Lecture Notes on Expert Systems, Fuzzy Inference www2. cs. siu. edu/~rahimi/cs437/slides/lec05. ppt? ) Accessed on 02-01-14).
  12. Vellido, A. Lisbon, G. , and Vaughen, J. (1999), Neural Network in Business: A Survey of Applications, "In Proceeding of Experts Systems with Applications, Australia" pp 51-70.
Index Terms

Computer Science
Information Sciences

Keywords

Credit Scoring Fuzzy Logic Micro Finance Fuzzification Defuzzification

Powered by PhDFocusTM