Borrower Characteristics and Relationship Lending on Lending Decision Making- A Survey of Literature

The purpose of this article was to explore and analyze the earlier findings and latest research-related on lending decision making. The review focuses on the borrower characteristic information and relationship lending on lending decision making. Previous research revealed that the borrower characteristic information produced through the so-called lending technology, and the characteristics of the borrower can be classified into two categories; qualitative characteristic and quantitative characteristics. The results of this review also showed that there were inconsistencies findings on the effects of the characteristics of the borrower and relationship lending on lending decision making. These finding inconsistencies allegedly influenced by organizational factors and banks loan officer psychological factors as decision makers in the lending decision making.