A Credit Scoring Model for Commercial Loans

Abstract

An increasing number of credit scoring models have been developed in recent years as a scientific aid to the traditionally heuristic process of credit evaluation. With few exceptions these models are designedfor screening consumer loan applications. The purpose of this paper is to present a credit scoring model for commercial loans. The model is limited to the evaluation of existing loans and could be used by bank loan offiicers for loan review and by bank regulatory agencies for loan examination.