Capital Loans Research Articles

Empowering Muslim Women Micro, Small, and Medium Enterprises (MSMEs) Owners through Working Capital Loan (KUR)

Empowering Muslim Women Micro, Small, and Medium Enterprises (MSMEs) Owners through Working Capital Loan (KUR)

Inclusive Business Model in the Sheep Value Chain: A Strategy to Enhance the Sustainability of Livestock Businesses, Indonesia

Aims: Analyzing and comparing the inclusiveness of farmers in every value chain through both cooperatives and non-cooperatives, and designing an inclusive business model in the sheep value chain to support business sustainability. Study Design: The design of this research is quantitative descriptive, using primary and secondary data. The data collection method involves the use of questionnaires through Focus Group Discussions (FGD) and in-depth interviews with respondents. Place and Duration of Study: The research was conducted from November 2023-January 2024 in Sei Bingai District, Langkat Regency. Methodology: Data analysis uses a methodology link with four analysis tools, namely value chain maps, business canvas models, and principles of new business models. Results: The inclusive business model in the sheep value chain in Langkat Regency involves cooperatives and non-cooperative operations. Cooperatives facilitate farmers to jointly purchase sheep, obtain capital loans, and export. Whereas non-cooperative farmers can also operate independently through the contract farming model. The application of technology and green economy principles is also considered important to achieve sustainability. The establishment of village-owned enterprises (BUMDes) can also be used to empower farmers and increase village income. This entire model requires cooperation between farmers, the government, and other parties in the supply chain. Conclusion: The involvement of farmers in the sheep Value Chain in Langkat Regency is crucial to support business continuity. The inclusive business model in the sheep value chain through cooperatives and non-cooperatives requires cooperation between farmers, the government, and other parties in the supply chain to achieve the sustainability of the farmers' business.

TINJAUAN HUKUM EKONOMI SYARIAH TERHADAP KREDIT USAHA RAKYAT (KUR) SYARIAH PADA PEGADAIAN SYARIAH CABANG PASAR RENTENG PRAYA LOMBOK TENGAH

UMKM have great potential in economic development in Indonesia. However, there are still many UMKM sectors that face problems in developing their businesses, namely limited financial problems in obtaining additional capital. Currently, many financial services offer capital loans, one of which is the Renteng Sharia Pawnshop institution which distributes Super Micro People's Business Credit (KUR). Because the distribution of Super Micro KUR has only just begun to be distributed, it is necessary to examine everything related to distribution practices, namely the process/procedures, terms, contracts, conditions and whether the problem resolution process is in accordance with the economic system in sharia economic law. This research uses a field/empirical approach with qualitative research methods that describe the objects or subjects studied in depth using empirical evidence obtained through interviews, observation, documentation of reality in the field. The research results show that credit in Islam is permissible because originally there was no text that forbade it. Most scholars say yes. The distribution of Super Micro KUR at Renteng Syariah Pegadaian does not contain anything that is detrimental to both parties and is in accordance with sharia economic law because it has implemented the principles of justice ('adl), balance (tawazun), benefit (maslahah), and does not contain elements of gharar (vagueness/obscurity). vaguely, maysir (gambling), usury, dzulm (tyranny), risywah (bribery), and other haram objects.

Financing MSME Using Analysis of IFAS and EFAS Matrix: Case Study in Honey Pumpkin Business

This study is aimed to find out how the Honey Pumpkin business development strategy is carried out by Honey Pumpkin Farmers in Banyusokah Village, Sampang Regency based on EFAS and IFAS Matrix. The method employed in this study is descriptive qualitative which is aims to describe, describe, record, and analyze existing and current conditions. The result of the study showed that Honey Pumpkin business in Banyoksah Village of Sampang Regency is able to implement the growth oriented strategy for developing its business. The suggested strategies are firstly, to distribute the products in the store at Sampang Regency and utilizing social media such as IG, whatsApp and so on for marketing. Secondly, diverging the processed product from honey pumpkin and turning customer into reseller. Thirdly, replacement of production technology used with more sophisticated and modern to increase the production effectively and efficiently. Lastly, opening several branch of store that owned by the company. Meanwhile, financing aspect regarding to growth oriented strategy several financing model could be useful. For example, working capital loan, digital marketing loan, business expansion loan, and equipment loans or leasing arrangement. Therefore, research and approach of financial institutions, banks, and alternative lenders is necessary to explore specific financing options that suit with growth strategies.

The Role of Public Development Banks During the Pandemic: Impact Evaluation of BICE's Innovative Credit Response

ABSTRACT The global COVID-19 pandemic triggered a renewed impetus for the countercyclical role of development banks, marked by widespread adoption of diverse instruments to mitigate its impact. Argentina's development bank (BICE, Banco de Inversión y Comercio Exterior, specialized in loan for long term investment, responded to the 2020 health and economic crises implementing a working capital loan program. Amidst a lack of substantial evidence on the efficacy of similar counter-cyclical interventions, we employed a quasi-experimental methodology, incorporating Propensity Score Matching (PSM) and Fixed Effects (FE) estimations, to evaluate the program's impact. Our results demonstrate that firms benefiting from the loan maintained employment levels, in stark contrast to a nearly 6 per cent decrease for those without it. The program effectively mitigated the employment impact of the transient shock. Robustness checks, along with falsification tests, bolster our identification strategy. Complementary findings emphasize that the program's success lies in providing credit during adverse conditions, when private sector credit contracts. This insight, rather than the exceptional terms of the credit, offers a crucial lesson for the future.

Pengaruh Penyaluran Kredit Perbankan Terhadap Pertumbuhan Ekonomi di Nusa Tenggara Timur Tahun 2013 – 2022

Banking plays a crucial role in society. Banks, as direct partners of the community, serve as the main drivers of the economy. The significance of the banking sector in shaping development directions, fostering economic growth, and enhancing societal welfare has been acknowledged by various societal elements. This study aims to examine the regression outcomes of variables such as working capital loans, investment loans, and consumer loans on economic upliftment in the region of East Nusa Tenggara Province. Multiple linear regression analysis, t-tests, and F-tests are employed as statistical methods to discern the relationships between several independent variables and the dependent variable in this research. Secondary data spanning a decade are collected from the Central Bureau of Statistics of East Nusa Tenggara Province. The findings reveal that economic growth in East Nusa Tenggara Province is positively and significantly influenced by investment loans and consumer loans, while working capital loans exhibit a negative and insignificant impact.

Factors Affecting the Star_Rating of OCOP Foods in Tuyen Quang, Vietnam

OCOP (abbreviated in English as One commune one product), understood in Vietnamese as one commune (ward) one product. OCOP is an economic development program for rural areas in the direction of developing internal resources and adding value. By 2023, Tuyen Quang province has 191 OCOP products achieving three_star or more, of which 171 products belong to the food industry, accounting for 89.5%. The study surveyed a total of 120 product manufacturers in the food industry, of which 60 products have been ranked OCOP, 60 products have not been ranked OCOP. The study used a regression model to analyze the impact of the classification results of OCOP products on the sales revenue of the owners. Multivariate regression model is also applied to analyze factors affecting star- ratings for Food OCOP products of Tuyen Quang province. Based on the study results, the authors have proposed a number of solutions such as: Rejuvenate human resources; Strengthen links in production and business; Increase support for capital loans; Exploiting favorable factors for the development of OCOP product production; Promote ratings and star_upgrades for OCOP food products in Tuyen Quang province.

Pengaruh Modal Pinjaman dan Kredit Bermasalah terhadap Profitabilitas

This study aims to: (1) Explain the effect of loan capital on profitability. (2) Explaining the effect of non-performing loans on profitability. (3) Explaining the effect of loan capital and non-performing loans on profitability. The variables used in this study are Loan Capital (X1), Non-performing Loans (X2), Profitability (X3). This research was conducted at the Citra Utama Credit Cooperative for the 2016-2020 period. The sampling technique in this study used a purpose sampling technique. Sources of data used are secondary data sources obtained by means of documentation and literature study.The data analysis used is non-parametric with classical assumption test in this study is normality test, multicollinearity test, heteroscedasticity test, multiple linear regression analysis. Hypothesis test using t test, f test, and coefficient of determination. With the results of the research loan capital has no effect on profitability with the significance of the loan capital variable (X1) 0.073 > 0.05 and tcount < ttable (-1.852 < 2.002), non-performing loans have a negative effect on profitability with the significance of loan capital variable (X1) 0.044 > 0 .05 and tcount > ttable (-2.056 < 2.002), Loan capital, non-performing loans have a simultaneous effect on profitability with a significance of 0.072 > 0.05 Fcount that is 2.756 > Ftable 3.16.Keywords: Loan Capital, Non-performing Loans, Profitability

Optimizing the Role of User and Maintainer Groups (Kpp) in the Settlement Quality Improvement Program (Case Study of Klasabi Slum Settlement, Sorong City)

The purpose of this research is to optimize the role of the user and maintainer group (KPP) in the Klasabi slum quality improvement program of Sorong City. In this case, the environmental conditions in this settlement are reviewed, the role of KPP is evaluated, and optimization strategies are also formulated that can be used for the environmental management of Klasabi slums in Sorong City. This research is quantitative with the method used in this research, namely the descriptive method with a case study technique through data collection from the results of distributing questionnaires, interview results, direct observation, and using other official documents analyzed using validity test analysis and reliability tests. Based on the results of the data validity test and the data reliability test, it was found that the research data or questionnaire data used in the study was valid and reliable. research data or questionnaire data used in this study is valid or reliable. The results showed that environmental conditions, seen from several perspectives, including ecological, economic, social, and cultural, can be considered good. However, when viewed in ecological conditions, especially in road and drainage conditions, it is still considered adequate by the community because there is no equal distribution of facility development. Also, the role of the user and maintainer group (KPP) is assessed as not optimal in carrying out its duties and responsibilities; this is supported by the results of the conducted interviews and observations made by researchers. In addition, optimization strategies can be carried out, such as structuring the Klasabi area around Deo Airport in Sorong City, handling slum houses by the government to support the development of water tourism, optimizing the use of water hyacinth plants that can be developed by community members using SIKIM and BLK facilities, and providing capital loans to support the business of making traditional snacks, traditional Papuan handicrafts, and Papuan craftsmen certification training in Sorong City.

The Impact of the Stimulus Packages on the Economy during COVID-19 in Bangladesh: A Mixed-Method Approach

With the unexpected onset of COVID-19, governments across the world responded with a range of preventive measures, including the imposition of lockdowns. To mitigate the adverse effects of lockdowns arising from supply chain shocks and employment loss, governments worldwide chose to implement policies to stimulate their economies and keep them working. This study assesses the impact and effectiveness of four of these packages in Bangladesh, employing a mixed-method approach. These packages include “salary support for workers in export-oriented RMG industries”, “working capital loans for affected industries and service sectors”, “working capital loans for cottage, micro, small, and medium enterprises”, and initiatives for “revitalizing the rural economy and job creation”. Each package was examined individually because of their differences in beneficiary groups, implementation methods, and individual objectives. Quantitative analysis involved propensity score matching (PSM), the difference in difference model (DID), and structural equation modelling (SEM). Stakeholders, including policy implementers, Bangladesh Bank officials, policy analysts, academics, workers, and beneficiaries, contributed to the qualitative analysis through extensive key-informant interviews, providing a comprehensive assessment of intervention outcomes. Ultimately, the results show that the packages achieved their socio-economic relief objectives for beneficiaries. The research examined both positive impacts and challenges in their implementation. It suggests that all four packages successfully achieved their goals, such as providing social and economic support, sustaining livelihoods, addressing marginalized groups’ needs, ensuring survival for large industries and small businesses, and promoting employment. In order to better address future shocks, establishing a beneficiary database integrated with the national system is recommended for smoother policy rollout. Despite acknowledged limitations, including challenges in beneficiary identification, data availability, and time constraints, the study’s unbiased estimations provide valuable insights to guide future policy directions in similar situations.

Cayenne Pepper Seed Partnership Sustainability Strategy (Case Study of "You Seed" Company Jember East Java)

Jember is one of the Cayenne pepper-producing districts in East Java. It is among the top 10 cayenne pepper producers in East Java and has the potential to contribute raw materials for cayenne pepper seeds. One of the superior seed-producing companies in Jember Regency is PT. Benih Unggul Sejati or You Seed Company. The company partners with cayenne pepper farmers in Jember to get raw seed materials. The higher demand for seeds is a problem, namely the farmers' lack of raw seed materials in stock. Farmers often provide seeds from their cayenne pepper harvest in quantities below the target set by the company. The sampling method uses a total sampling of 28 respondents. The data collection method uses observation, interview, and literature study methods. The research methods used are descriptive and quantitative. The results of the study are the sustainability strategy of the partnership that exists between the company PT. Benih Unggul Sejati and cayenne pepper seed farmers, namely the company strengthening emotional relationships with partner farmers through increasing the frequency of visits to partner farmers' land; the company provides capital loan assistance of up to 50% of the total cost of cayenne pepper farming expenses to partner farmers; utilizing waring technology in the cayenne pepper cultivation process; expanding the sales market for cayenne pepper seeds both nationally and internationally and cooperating with fellow IPBH member companies.

Loan Portfolio Management and Bank Efficiency: A Comparative Analysis of Public, Old Private, and New Private Sector Banks in India

This comparative study analyzed the impact of loan portfolio composition on the efficiency of different types of banks in India—public sector, old private, and new private banks—in the period between 2013 and 2022. Efficiency was evaluated using data envelopment analysis (DEA). The study considered four loan variables—term lending, working capital, priority sector lending, and secured lending in proportion to the overall loans—as independent factors against the efficiency score as the dependent variable, using a random-effects generalized least squares (GLS) regression framework. The results indicate that there were no significant effects on the efficiency of old private banks, except for working capital, which had a marginally negative impact on bank efficiency. Working capital, priority sector lending, and term lending have been found to significantly impact the efficiency of new private banks. Only term and working capital loans significantly affected the efficiency of public sector banks.

The Role of Sharia Pawnshop in Supporting The Growth of The Halal Industry: Opportunities and Challenges

This research discusses the role of sharia pawnshops in supporting the strength of the Islamic financial ecosystem through the halal industry. The halal industry continues to develop rapidly in this era so the role of sharia pawnshop is not overlooked in its development. This research uses a qualitative research method that uses a descriptive analysis approach that uses various sources regarding the Sharia financial ecosystem, halal business, and the function of Sharia pawnshops in facilitating the Islamic financial ecosystem. This research explains that Sharia pawnshop can be a financial solution regarding limited capital and household economics. MSMEs are an indicator of contributing to GDP in countries that are experiencing difficulties with bank loans. Sharia pawnshop can provide capital loans with fairly easy conditions, one of which is the BPKB Ar-rum product. This research found that Sharia pawnshop has carried out a lot of promotion and education to increase public interest in Sharia pawnshop through offering benefits and in-depth understanding. This is proven by innovations in Sharia pawnshop products. Qardhul Hasan, ijarah, musyarakah, ba'i muqayyadah and murabahah-based financing in sharia procurement really supports the development of the halal industry.

Peran Aktif Masyarakat Terhadap Koperasi Syariah Di Kabupaten Pringsewu

Sharia cooperatives are a type of cooperative whose goals, principles and business activities are based on sharia principles. This principle refers to Islamic law which is based on fatwas issued by the National Sharia Council of the Indonesian Ulema Council. This research aims to determine the role of the community in improving sharia cooperatives in Pringsewu Regency. The study was conducted using a qualitative research study. The impact of sharia cooperatives can encourage people, especially business people, to achieve and develop the businesses they start. Sharia cooperatives focus on principles that do not involve the practices of usury, gharar and maysir. Through this approach, sharia cooperatives help keep us away from actions that are forbidden by Allah. One practice that must be avoided in sharia cooperatives is applying for capital loans to loan sharks.

Efektivitas Pemberian Dana Usaha Terhadap Pemberdayaan Ekonomi Perempuan (Studi Kasus Koperasi Wanita Mayangsari 38b Banjarrejo)

One of the activities to encourage women's empowerment in the economic sector is the provision of business financing through non-bank financial institutions such as banks and cooperatives. Working capital loans are goods (money) or services used to run a business that must be repaid within a certain period of time based on a contract between the borrower and the lender. This study explores how business financing from non-bank institutions, like the Mayangsari Women's Cooperative, empowers women in the economic sector. The type of research used is field research. Field research is research carried out in the field or at the research site, namely the Mayangsari 38B Banjarejo Women's Cooperative. Borrowers met key criteria, including generating income and developing their businesses. The success lies in adhering to empowerment principles. Members understand the loan purpose and strive for effectiveness metrics. The program aims to start or grow businesses, ensure good loan repayment, offer income opportunities, and foster independent business ownership. This is evident in members acquiring new skills and some even starting new businesses without further loans, proving the program's sustainability. This case study showcases the potential of business loans to empower women, not only financially but also by fostering independence and entrepreneurial spirit. By adhering to sound principles, such programs can contribute significantly to women's economic development and overall well-being.

Strategi Nafkah Rumah Tangga Petani Padi Lahan Kering di Desa Kragan, Kecamatan Gondangrejo, Karanganyar

This research was conducted with the aim of uncovering daily life, the livelihood strategies implemented, and the sustainability of livelihood strategies for the lives of dry land rice farmer households in Kragan Village. This research was conducted using descriptive qualitative methods with a case study approach. The research location was determined purposively in Kragan Village, Gondangrejo District, Karanganyar Regency. Determination of informants was carried out using purposive sampling and snowball sampling. Data validity uses triangulation of sources and techniques. The research results reveal that (1) On-farm households predominantly utilize financial capital in the form of personal capital. On-farm and non-farm households predominantly utilize human capital. On-farm, off-farm and non-farm households predominantly utilize financial capital in the form of loan capital. (2) Based on the livelihood strategy implemented, dry land rice farming households in Kragan Village are classified into 3, namely on-farm farming households, on-farm and non-farm farming households and on-farm, off-farm and non-farm farming households. (3) The livelihood strategies of on-farm farming households include consolidation, while the livelihood strategies of on-farm and non-farm farming households, and on-farm, off-farm and non-farm farming households include survival.

Peran Bank Wakaf Mikro Syariah dalam Pemberdayaan Ekonomi Masyarakat (Studi Empiris BWM Ponpes Mawaridussalam)

The problem of poverty and economic inequality has always been a major problem in the presence of social disparities in Indonesian society. The role of financial institutions in the distribution of funding and financing has an important role in empowering the economic activity of the community. This research aims to find out the role of Bank Wakaf Micro Shariah Pondok Pesantren Mawaridussalam in Economic Empowerment of the Society. This study uses qualitative research techniques with a descriptive approach. The types of data used in this study are primary data and secondary data. Data collection techniques are done with observations and interviews. The results of this study show that the role played by Bank Wakaf Micro Shariah Pondok Pesantren in empowering the economy of the community around the mansion is by providing financing and support through weekly activities (halmi). The result of the research is that Mawaridussalam is trained through the Wakaf Micro Bank. The Shariah has a role in empowering the community by providing business capital loans for micro-economy, getting rid of rent and interest bars, increasing daily income and adding religious science.

Pembinaan dalam Upaya Meminimalisir Resiko Pengembalian Dana Pinjaman Modal Pada UMKM di Bank Wakaf Mikro Syariah Denanyar Jombang

Bank Wakaf Mikro (BWM) Sumber Barokah Denanyar Jombang is one of ten Islamic MFIs in the early stages of the 'Community Empowerment through the Establishment of Islamic MFIs around Pesantren‛ Program facilitated by the Financial Services Authority (OJK) and the Small Business Incubation Center (Pinbuk) by providing loan funds for more productive community business groups. The purpose of this assistance is to provide guidance and direction on the knowledge and implementation of the efforts to be made by the Denanyar Jombang Sharia Micro Waqf Bank in minimizing the risk of capital loans given to MSMEs as business capital. There are three (3) stages in this assistance: Preparation, Implementation and evaluation. The results of the assistance show: (1) An increase in efforts to minimize the risk of capital loans, (2) A decrease in the number of defaults on the risk of returning loan capital (3) An increase in family values and religiosity for customers who make loans.

ECONOMIC CONDITIONS OF THE DEMAND FOR INVESTMENT AND WORKING CAPITAL LOANS FOR MICRO-ENTERPRISES – RESEARCH FOR POLAND DURING COVID-19

Aim: The study aims to find an answer to the question of whether and how the economic indicators in the industrial processing, construction, trade, and services sectors reflect changes in the market size related to investments and working capital loans for micro-enterprises. Methods: The study used data on investment and working capital loans and data on economic conditions. Monthly data for the years 2019–2021, covering the period of the COVID-19 pandemic, were used for the analyses. The estimation of dynamic models was carried out using the Generalized Method of Moments (GMM). Results: The conducted research showed that economic factors play a significant role in shaping the demand for investment and working capital loans in the micro-enterprise sector, but the impact of the economic situation was more significant in the case of investment loans than working capital loans. In periods of economic prosperity, micro-enterprises are more likely to take out investment loans than in periods of economic downturn. Micro-enterprises’ propensity to take out working capital loans is more dependent on their current situation and expectations regarding the demand for products and services. Conclusions: The research revealed differences in the characteristics of the factors significantly influencing the demand for credit, depending on the sector to which the indicator is concerned. The research shows that access to external financing is crucial for the functioning, survival, and expansion of micro, small, and medium-sized enterprises. The research fills the literature gap by showing how the economic situation in individual industries affects the credit market for the micro-enterprises sector.

Moral Hazard Versus Adverse Selection On The People’s Business Credit Program In Indonesia

This paper discusses the behavior of providing bank credit to SMEs during the people’s business credit (KUR) program in Indonesia. Since it was launched in 2007, the average NPL for these loans has increased. This indicates the existence of moral hazard behavior in lending by banks. To prove this indication, this paper implements a threshold regression model. Data covers 38 participating banks, which were observed during Q1-2008 to Q2-2021. The results of data analysis show that moral hazard behavior is indicated when NPL below or equal to 5.87%, on the contrary, experienced adverse selection. Specifically, moral hazard behavior is dominant in the case of investment credit and local government- owned banks. In working capital loans and others, this behavior also occurs, but not as in the case of investment loans. Moral hazard and adverse selection behavior were not detected at all in stateowned banks, while in private banks only occurred at a low level. At the end of the analysis, we also consider the shock effects of the global financial crisis (2008), European crisis (2009), and the Covid-19 pandemic (2020-2021) on the threshold regression model, but the results are negative, thus strengthening our previous findings. In general, the factors that significantly determine the risk of non-performing loans in the people’s business credit program are the increase in credit growth, market share, deposit insurance interest rates, and economic growth as well as a decrease in the benchmark interest rate. However, the specifics are different, both in each type of credit and the type of participating bank.