Title:
DIGITAL CREDIT TERMS AND LOAN DEFAULT AMONG UNIVERSITY STUDENTS IN UGANDA (A case study of COBAMS, Makerere University)

Authors:
Sebanakita Sulaiman , Yusuf Kiwala , Nzibonera Eric and Kintu Ismail

Abstract:
The study’s purpose was to establish the relationship between digital credit terms and loan default/payment. The study execution was based on quantitative approach with primary data being collected from 254 sample of students of both graduate and undergraduate programs of the College of Business and Management Sciences of Makerere University. Correlation and regression was conducted and a dprobit model was used for estimation purposes. the results indicate that 79.5% of the respondents were undergraduate students. The results further indicate a significant relationship between education level and loan default/payment with a p value of 0.023 at 95% level of confidence. We recommend that since the current credit terms do not consider education level, digital credit providers must take it up and incorporate it in the credit appraisal framework

Keywords:
Digital credit terms, loan default/payment and Education level