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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
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Index Terms

Computer Science
Information Sciences

Keywords

Credit Scoring Fuzzy Logic Micro Finance Fuzzification Defuzzification

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