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Islamic Personality Model as Psychometric Tool to Assess Creditworthiness of Micro Financing

This study aims to develop an Islamic personality model as a
psychometric tool to assess creditworthiness as an alternative
predictive character analysis for micro businesses. The method
designed to formulate the proposed model coded in R Studio uses
two approaches. First, we modify Moslem Religiosity Personality
Inventory and then frame a structural model based on Partial
Least Square. Subsequently, we use the random forest technique
to see the model's accuracy. The result shows a valid and reliable
model and performs with 89.47 % accuracy with an Area Under
Curve -Receiver Operating Characteristic of 90.06 %. This model
implies a solution to strengthen the assessment of the character of
creditworthiness of a potential micro-business and helps Islamic
Financial Institutions to assess prospective micro-business to
determine credit risk and pricing.

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