The purpose of this paper was to identifying the loan default rate and its impact on profitability, and Determining ways of reducing loan defaults in the way of SPV/SPC i.e. special purpose vehicle or special purpose company to frame a security to the bank for issued loans in the form of unsecured to the borrowers. Parties involved in the transaction of SPV and SPC. According to Cox and Kendall, “securitization is the process where pools of individual loans, receivable or bad instruments are packaged in the form of securities, the credit status or rating of the securities are enhanced and distributed to the investors.