A Mathematical Model for Better Portfolio of Loans in Credit Institutes

Credit institutes that go side by side with trade banks in Iranian money market have the duty of both opening saving accounts and granting loans to their customers in the form of Islamic contracts such as Joaleh, Qarzolhasaneh, Muzarebeh, installment plan, etc. These institutes should execute their duties towards their customers by considering the former’s credit risks since the main cause of their insolvency have been the difficulties involved in portfolio management. This article by using operation research methods provides a model for better portfolio of loans which can optimize the profits of the institute.