Strategies for Handling Problem Loans at KSP CU Dharma Bakti Yogyakarta

Abstract

KSP CU Dharma Bakti as a saving and loans cooperative has a crucial role in supporting the community’s economy through providing financial services. The main challenge faced by KSP CU Dharma Bakti is effective credit management to prevent and handle problem loans. The objective of this community service to formulate the strategy for handling problem loans at this cooperative. The result of this program shows that the causes of bad credit at KSP CU Dharma Bakti are internal and external factors, such as lack of selectivity on granting credit and weak credit monitoring systems. The strategies to overcome the loan problem are rescheduling, restructuring, and forfeiture of collateral.