Credit Application Process Research Articles

Strategi Pengembangan Kredit Retel(Studi Pada Bank QNB Indonesia)2017

This study aims to formulate the strategy for developing retail credit at Bank QNB Indonesia. Analysis method using SWOT analysis. Assessment of internal and internal factors is done by distributing questionnaires. The results of the research are the identification of internal and external factors of the company, alternative strategies and priority strategies. The conclusion of this study is that banks have greater strengths than weaknesses and threats greater than the opportunities they have. The four alternative strategies of developing retail credit at QNB Bank Indonesia are: SO strategy by expanding retail credit distribution, using information technology to increase bank funding sources, expanding the network. WO strategy with competitive retail lending rates, credit priority for MSME sector. Strategy ST with the strengthening of handling of bad debts, improving the quality of human resources, and increasing the quality of services. WT strategy with accelerated credit application process and more careful credit policy. The main priority strategy is ST strategy. Suggestion of this research is company to always do analysis of external and internal factor so that company can apply appropriate strategy. Banks to implement SO strategies by enhancing marketing in both individual and MSME segments, enhancing m-banking capability so as to increase the amount of savings as a source of retail credit financing, and expanding the network by opening new branches and cooperating with cooperatives for retail credit distribution. In addition, further investigators can develop this research with other analytical tools.
 Keywords: Strategy, Retail Credit, SWOT.

Kendala Usaha Mikro Dalam Mengakses Kredit Usaha Rakyat (KUR)

There are two objectives in this study: (1) to determine how micro businesses in Ciputat in accessing loan credit program (KUR) for their business development; (2) analyze the factors that can be an obstacle in accessing it. The research data obtained through questionnaires and interviews with micro entrepreneurs (traders) who are in the market Ciputat, South Tangerang Municipality. Research analysis techniques using descriptive analysis techniques and quantitative analysis. The variables in the study include independent variables/internal factors and external the dependent variables/constraints. Relationships between variables were examined by using test correlation coefficient. The study concluded that essentially the factors or constraints that may affect businesses in accessing credit consists of internal and external factors. Internal factors consist of background education, their understanding about credit, collateral owned, and the courage to apply for credit. While external factors consist of socialization of KUR, lending, collateral requirements, licensing, and credit application process. This is shown by the average of respondents agree that these factors affect or be an obstacle in accessing credit.

RANCANG BANGUN SISTEM INFORMASI PENGAJUAN KREDIT BERBASIS WEB PT. BUANA SEJAHTERA MULTIDANA

Credit application system is a system that is still rare and potentially good for any people who use the internet. Credit application system is an easy and practical way to apply for loans include credit applications until the approval stage. In general, credit application system is still based on manual which led to a long process, loss of data, to prospective customers who fled for being too slow. The system is very helpful that the authors make the credit application process becomes more quickly, efficiently and accurately. With a little easier new customers and existing customers with the rotation system will accelerate the economy in the company of PT. Buana Sejahtera Multidana which will impact also on the company's profits.

The Effect of Allocating Decision Rights on the Generation, Application, and Sharing of Soft Information

Should a bank take small to medium sized companies at face value? Research in both accounting and finance has tried to answer this question by studying the use of soft information that is qualitative, hard to verify, and costly to transfer. We study how the generation, application, and sharing of this soft information is affected by the location of knowledge and the allocation of decision rights. We exploit a quasi-natural experiment at a large European bank to study whether reallocating decision rights away from the loan officer enables or impedes the use of soft information in the operational decision making process. Our findings indicate that the reduction in decisions rights increases the amount of soft information integrated in the the credit application process. These findings are robust to controlling for strategic loan sorting behavior, manager fixed-effects, and the likelihood of acceptance. We also document that this increase in considered soft information is driven by a change in behavior of the incumbent loan officers and that this change in behavior improves the loan application process through better ex-post loan outcomes.

Determinants of the demand for credit by smallholder farmers: survey results from South Africa

Access to credit is one of the constraints facing smallholder farmers in South Africa. This paper investigates the factors that determine the demand for credit by smallholder farmers. Survey data from 362 respondents from Mpumalanga and North West Provinces was used to estimate the credit demand function using multiple regression analysis of the ordinary least squares (OLS) method. Age, marital status, farm inputs such as fertiliser, seed, pesticides and tractors and machinery were observed to have a positive and significant influence on the demand for credit. Education portrayed a strongly negative relationship with the demand for credit suggesting that the less educated the farmer is, the lower the propensity to borrow. It is argued that the complexity of the credit application process makes it less appealing to prospective borrowers. Similarly, the coefficient for interest rates was negative and significant. However, gender, farm size, distance to the bank and labour were found to have no influence on the demand for credit. These results have important policy implications.

Adding insult to injury: consumer experiences of being denied credit

AbstractTo inspire confidence in consumer credit and improve outcomes for consumers, negative experiences such as being denied credit must be handled appropriately. We conducted an online survey with 298 UK citizens who had a credit application denied to gain a better understanding of their experience of being denied credit. We found that privacy issues make this experience more upsetting for consumers than necessary. When being denied credit, respondents are most concerned about (1) being denied credit ‘in public’; and (2) not being informed about the reasons why they are denied. Only 23% of our respondents knew why they had been denied; 116 (62%) believed they had been denied credit because of their credit record, but 28% had never checked it. Out of the 194 respondents who had checked their record, 38 identified errors in their credit reports, and in 14 of these cases (38%) debts that they had paid off were incorrectly listed as outstanding. Based on our findings, we propose several changes to the credit application process: (1) providing sensitive but helpful information in a private manner, e.g. a preview of their credit score before they commit a loan application; (2) credit denial notifications with information on what to do next; and (3) giving applicants more information about checking their credit report and who to contact for correcting errors.

Female-owned businesses and access to finance: evidence from the Ghanaian non-traditional export sector

This study uses data from a sample of Ghanaian non-traditional exports (NTEs) to determine differences in obtaining formal finance between male and female-owned firms. Findings revealed that there is adverse discrimination in the lending process placing women at a disadvantage. Women are either unfairly denied credit or discouraged in the credit application process with the end result that they are less likely to obtain formal loans. In addition, women do not network as effectively as men. Thus, they do not have the same access to sources of information and capital. Female-owned businesses tend to rely on informal finance sources because of the unwillingness of the formal sector to lend to them. Female-owned clients are also effectively shut out from the formal market due to high collateral requirements and high minimum deposit requirements. There is therefore a high conformity of the results of this study with similar studies in other parts of the world. Recommendations are made in this regard. Gender and Behaviour Vol. 4(1) 2006: 508-521