Publication Date


Document Type


First Advisor

Newman, Joseph A.

Degree Name

B.S. (Bachelor of Science)

Legacy Department

Department of Finance


For my capstone project, I have studied the profitability of installment loans for banks. To begin my paper, I start with the history of consumer credit: how it began, what it is now, and the legislation that rules it. I then go on to explain the different types of loans that are regulated by the legislation. These different types of loans are then broken down into two subtypes that are the focus of the paper -- direct and indirect loans. These loans are explained from the overall banking perspective. Next, I apply the information given in the start of the paper to a direct example using actual data gathered from a midsize bank in the DeKalb area. This actual data is put through a regression analysis to arrive at a final decision about which type of loan, direct or indirect, is more profitable for the bank.


17 pages




Northern Illinois University

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