Table 6. Cox regression analysis for loans’ survival time.
| Predictors | Parameter estimate | Standard error | Risk ratio |
|---|---|---|---|
| Loan purpose | |||
| Wedding | -0.435*** | 0.154 | 0.647 |
| Credit card | -0.423*** | 0.069 | 0.655 |
| Car loan | -0.353*** | 0.125 | 0.702 |
| Major purchase | -0.300*** | 0.091 | 0.741 |
| Home improvement | -0.193** | 0.081 | 0.825 |
| Debt consolidation | 0.021 | 0.040 | 1.021 |
| House | 0.073 | 0.201 | 1.076 |
| Vacation | 0.074 | 0.181 | 1.076 |
| Other | 0.160*** | 0.059 | 1.173 |
| Medical | 0.299** | 0.131 | 1.348 |
| Moving | 0.329** | 0.132 | 1.390 |
| Renewable energy | 0.339 | 0.334 | 1.403 |
| Educational | 0.443*** | 0.147 | 1.557 |
| Small business | 0.824*** | 0.070 | 2.279 |
| Housing situation | |||
| Mortgage | -0.176*** | 0.041 | 0.838 |
| Own | -0.007 | 0.073 | 0.993 |
| Rent | 0.161*** | 0.040 | 1.175 |
| Other | 0.492* | 0.251 | 1.635 |
| Borrower Assessment | |||
| Subgrade | -0.071*** | 0.003 | 0.931 |
| Interest rate | 14.444*** | 0.619 | 1873887 |
| Loan Characteristics | |||
| Loan Amount | 0.000 | 0.000 | 1.000 |
| Borrower Characteristics | |||
| Annual Income | 0.000*** | 0.000 | 1.000 |
| Employment Length | -0.006 | 0.006 | 0.994 |
| Credit History | |||
| Credit History Length | 0.000*** | 0.000 | 1.000 |
| Delinquency 2 Years | 0.120*** | 0.034 | 1.128 |
| Inquiries Last 6 Months | 0.186*** | 0.016 | 1.204 |
| Public Records | 0.470*** | 0.061 | 1.600 |
| Revolving Utilization | 0.925*** | 0.070 | 2.522 |
| Open Accounts | -0.012** | 0.005 | 0.988 |
| Months Since Last Delinquency | -0.002 | 0.001 | 0.988 |
| Borrower Indebtedness | |||
| Loan Amount to Annual Income | 1.578*** | 0.174 | 4.845 |
| Annual Instalment to Income | 4.654*** | 0.436 | 104.982 |
| Debt to Income | 0.015*** | 0.003 | 1.015 |
Number of loans analyzed: 24,449. Defaulted: 2,666 (10.9%). Non-defaulted: 21,783 (89.1%).
*** significant at the 1% level
** significant at 5% the level
* significant at the 10% level.