011 - Azizi, K.

Kawoon Azizi:

Retail banking in Afghanistan - Empirical study of Demand for Educational Loan Using Conjoint Measurement



Higher education is a human capital, which transforms people into a productive force. However, high cost of education is considered as a barrier in most of the countries. Educational loan appears to be a successful source of finance for students who wants to pursue their studies and commercial banks are the main provider of the loan. In Afghanistan a small number of graduates have access to free public higher education, due to its small capacity and private higher education. Further reasons are the high expenditures, which motivated Afghan banks to offer educational loan schemes, though, it is unpopular among the Afghan students and some banks suspended their educational loan offers. This study used conjoint measurement by collecting data from 105 students who were interested to have educational loan. Furthermore, the study selected four attributes of a student loan scheme (annual interest rate, security/collateral, starting date for repayment, repayment period) and analyzed to see which attributes are important to the Afghan students. The result of the analysis shows that from four selected attributes Afghan students gave more importance to “starting date for repayment” by giving importance value of 32.631 and “repayment period in instalment” by giving importance value of 25.945 out of 100.

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