Unveiling key Drivers of Customers’ perception of credit culture: A Structural Equation Modelling Analysis of Banks

Abstract

The study seeks to identify the factors affecting customers’ perception towards credit culture of banks in Haryana. The study uses a questionnaire approach to check the perception about credit culture of the banking sector through using 550 valid responses from an electronic survey comprising of 39 items. Credit culture has been significantly affecting by all factors i.e. trust, transparency, service quality, accessibility, lending terms and interest rate. Banks that understand client views can adapt innovative credit solutions, such as flexible credit limits, credit score-based incentives, or personalised loan packages, to satisfy their demands. A favourable credit culture perception supports customer happiness, loyalty, and advocacy, supporting long-term development and, ultimately, bank profitability.