Credit Repayment Research Articles

Pengaruh Sistem Pengendalian Internal, Karakteristik Personal, Kondisi Ekonomi, Besar Pinjaman, dan Nilai Jaminan terhadap Pengembalian Kredit pada PT. BPR Nusamba Rambipuji

Repayment of credit is the ability of prospective debtors to repay credit in accordance with the amount, schedule, and time period that has been determined. Not all debtors are able to return credit in accordance with the agreed agreement. At PT. BPR Nusamba Rambi Puji the rate of return on current loans fluctuated from year to year. The purpose of this study was to examine the effect of the internal control system, personal characteristics, economic conditions, loan size, and collateral value on loan repayment (PT. BPR Nusamba Rambi Puji). The independent variables used include: Internal Control System (X1) Personal Characteristics (X2) Economic Conditions (X3) Loan Size (X4) and Collateral Value (X5). The dependent variable is Credit Return (Y). The sample in this study were the credit employees of Pt. Bpr Nusamba Rambipuji selected through purposive sampling method. The analysis used is multiple linear regression analysis, F test, t test, and data quality test through validity and reliability tests. Simultaneously the results of the analysis show that all independent variables have an influence on credit repayments. Meanwhile, it is partially known that the internal control system and the size of the loan are variables that have an influence on credit repayment.

Responsibility of the Default Debtor in the Implementation of the Credit Agreement and Settlement

This article discusses the provision of credit provided by banks, one of which is at the Telaga Unit BRI bank with a building guarantee. Where at the Telaga Unit BRI bank in providing credit previously preceded by an agreement. To enter into an agreement, the borrower (customer) must have collateral. Without collateral, a customer cannot obtain a loan because collateral is one of the requirements for the customer to enter into a loan agreement. There is a close relationship between the lender and the guarantee. To guarantee repayment of credit from the debtor.

Variables Affecting the Repayment of the Community Business Credit KUR by Farmers in Coffee Farming

Coffee productivity experiences fluctuations where production from year to year always fluctuates but judging from the development of the business world which is increasing, especially in agriculture with coffee producing centers. Natural coffee cultivation activities certainly require maintenance costs which are not a few things this also cannot meet from one's capital alone and requires additional capital from other parties. In doing this business, not all farmers have sufficient capital to run their business, so the community needs additional capital to increase their business. One of the financial institutions that provide loans is bandages through the KUR guarantee program, which is 80 percent of which is indeed allocated to the agricultural sector. Meanwhile, in South OKU District itself, almost all coffee farmers are banking customers who get KUR credit facilities from several banks in Muara Dua OKU Selatan. During the pandemic, it can be said that it has not experienced the problem of bad debts which is so meaningful. So this attracted researchers to further examine the factors that affect the return of KUR by farmers in coffee farming in Runjung Agung District, Ogan Komering Ulu Selatan District. The focus of this study will be to review more deeply what factors affect the repayment of KUR on coffee farming in Runjung Agung District, Ogan Komering Ulu Selatan District (ownership status, income from coffee farming, land area, coffee farming costs, number of family dependents, loan amount, and credit repayment period)

PELAKSANAAN PERJANJIAN KREDIT MIKRO DENGAN JAMINAN UMUM PADA PT. BANK MANDIRI (PERSERO) TBK CABANG SUMENEP

The collapse of this sector will be able to cause a big shock to the state of the national economy. In accordance with article 8 of Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning banking which states that in providing credit or financing based on Sharia principles, commercial banks are required to have confidence based on in-depth analysis of the intentions and abilities and abilities of debtor customers. to pay off the debt or return the financing as promised and commercial banks are required to have and apply credit and financing guidelines based on Sharia principles, in accordance with the provisions stipulated by Bank Indonesia. The process of granting micro credit to PT. Bank Mandiri (Persero) Tbk. Sumenep Branch, the Bank must conduct an in-depth analysis of the prospective debtor on the debtor's ability/ability to repay all his debts in accordance with the agreed terms. In the implementation of micro credit agreements with general guarantees, where the debtor must pay installments of principal and interest in accordance with what was agreed with the Bank and maintain / protect the goods that have been guaranteed for the sake of smooth credit that has been given by the Bank to the debtor. Rescue efforts and settlement methods in the event of bad credit, the Bank must reschedule (rescheduling), reconditioning and restructuring. Because the amount of credit given is small, the settlement through KP2LN or the District Court does not need to be done. It is enough to take a family approach, allow for extension of credit repayment period, and perform write-offs (establishment of allowance for earning assets write-off).

Challenges of 21st Century Micro-Credit Firms: Debt Recovery and Clients Attitude to Repayment

The dual-faced challenge of micro financing has become worrisome among key players in the sector; while microcredit firms are faced with issues relating to debt recovery resulting from clients’ poor attitude towards repayment, clients are faced with the challenge of managing the credit. This study is however aimed at evaluating how firm skill is and structure can enhance debt recovery as well as establish the extent to which attitudinal disposition affect credit repayment by clients. It employed a survey of 40 credit officers drawn from 10 selected micro credit firms in Abeokuta metropolis who were purposively selected as well as random selection of 300 clients who obtain microcredit from the microcredit firms. The questionnaires were adapted from ASPIC Adjusted debt attitude survey and John Watson Materialism and Debt constructs. The analytical technique is multiple regressions. Research findings reveal that skills and structure have a direct effect on debt recovery and attitude disposition of client has a direct effect on credit repayment. It is therefore recommended that microcredit firms should investigate and monitor what the micro credit is meant for and if possible help the borrower in procuring the items/goods the credit is meant for as well as provide useful guide to borrowers on better ways to turnover proceeds from loan instead of diverting the loan

Revealing the pathway of reluctancy toward agricultural credit repayment: a case study on fish farmers in Bangladesh

Revealing the pathway of reluctancy toward agricultural credit repayment: a case study on fish farmers in Bangladesh

Pengaruh Penerapan Sanksi Terhadap Pengembalian Kredit Macet Pada Lembaga Keuangan Mikro Agribisnis (LKMA) Di Kabupaten Pesisir Selatan

Micro credit is a loan that is intended for the poor to continue their business. Since 2008, the Government has distributed micro credit assistance through the Rural Agribusiness DevelopmentProgram (PUAP) which is managed by the Agribusiness Microfinance Institution (LKMA). In theimplementation of this credit, there are still many bad loans. This study aims to determine the effectof the application of sanctions on the repayment of bad credit at the Agribusiness MicrofinanceInstitution (LKMA) in Pesisir Selatan Regency. The object of this research is the LKMA in PesisirSelatan Regency which was founded in 2011 - 2015 as many as 70 LKMA. Evaluation of the effect ofsanctions on LKMA credit returns is carried out using the Propensity Score Matching (PSM) methodbased on factors that significantly influence the LKMA's decision to apply sanctions. The factors thatsignificantly influence LKMA decisions are obtained from the results of logistic regression.Furthermore, the matching is done using the Nearest Neighbor Matching (NNM) method. Outcomethat is compared is the amount of arrears and length of arrears of credit. The results show thatsanctions have a positive effect on LKMA credit repayments as seen from the side of the length ofarrears because the longer the farmers are in arrears, the greater the sanctions imposed, so thatfarmers will seek to repay credit in a faster time. Meanwhile, in terms of the amount of arrears,sanctions do not have a significant effect on the repayment of bad debts

Responsibilities of Notaris/PPAT in Credit Agreements & Deed on Granting of Liability Rights (APHT) When the Debtor is in Default

This research aims to know that in the current era of industrialization, credit is something that is not far from everyday life. For the community, both wealthy and underprivileged, credit is a solution to meet the needs of people's lives such as: clothing, food, housing. One of the important credit principles is collateral. In credit activities that occur in the community, it can be noted that generally it is often required to provide credit guarantees. Credit guarantees will have several functions and one of them is securing credit repayment if the debtor is in default. Credit guarantees have an important role in securing bank refunds. The method used in this research was a sociological juridical approach. A sociological juridical approach was an approach by looking at a legal reality in society. Land is one of the immovable objects that are widely used as collateral for loan repayment. Mortgage rights over land are often used to obtain credit facilities because land has a high economic value and always increases from time to time. Land rights as collateral in agreements between creditors with the Debtor can be bound by using Mortgage Rights. The result show that the role and function of a notary/PPAT is important in assisting the government and other parties in need to provide certainty, order and legal protection in making authentic deeds and registration of Mortgage Rights until a certificate is issued by the Land Agency.

CONSTRAINTS TO FARMERS’ ACCESS, UTILIZATION AND REPAYMENT OF BANK OF AGRICULTURE’S LOAN IN NORTH CENTRAL, NIGERIA

The study analyzed the factors constraining the ease of access, utilization and repayment of agricultural credit of the Bank of Agriculture to farmers in North Central, Nigeria. Multi-stage sampling procedure was used to sample a total of 202 beneficiary farmers of BOA credit in the region. Primary data were elicited from the farmers with the aid of structured questionnaire that was complemented with interview schedule. Data analysis was done with descriptive statistics and principal component model. The result revealed that six (6) factors constitute the major constraints adversely affecting farmers’ access and utilization of BOA loans and they include bank structure and interest rates (10.8%), risks (9.5%), perception and poor loan administration (9.5%), integrity (7.8%), profitability (7.8%) and collateral constraint (7.7%) which explained a total of 53.2% of the variance in the 17 constraining variable components. The study concluded that these factors pose great threat to financing agricultural sector by formal institutions and consequently affecting agricultural productivity of the farmers in the region. It therefore calls for urgent intervention and remedy by all the relevant stakeholders. The study recommended that the procedures for the agricultural loan applications, approval and disbursement should be emendated to aid farmers’ ease of access of the loan and its optimal utilization which conveniently enhances the repayment. It was further recommended that the Bank embrace technology to make up for its poor spread and reach across the country.

Access to and Repayment of Agricultural Credit in the Face of COVID 19

Purpose: Gender differences in access to and repayment of loans seem to be the reason behind the persistent subsistence and small-scale nature of most agribusinesses in Cameroon. This study examines access to and repayment of agricultural credit in the face of COVID 19 in the West Region of Cameroon building on evidence from selected microfinance institutions in the West Region of Cameroon. Specifically, the study mirrors gender differences in microfinance loan disbursements and repayments, determinants of loan repayment, and constraints to loan access and loan repayment during the period of COVID 19. Method: The purposive sampling technique was employed to select 100 farmers who had access to agricultural credit in three villages in the West Region of Cameroon. A pre-tested questionnaire was used for primary data collection and secondary data was collected from microfinance institutions and the internet. Collected data were analyzed employing tables, frequencies, t-test, and regression analysis. Results: Findings indicated that there was a positive insignificant difference in the amount of credit received and repaid by male farmers than that of the female farmers. The male and female have equal access to credit and the same repayment capacities (R2 = 0.55 or 55%). Loan repayment was statistically and significantly determined by loan amount, interest rate, and time lag for repayment at the 5% significance level. Serious constraints to loan access were lack of sensitization, lack of collateral security, and illiteracy while major constraints to loan repayment were family commitment, price fluctuation, crop failure, high cost of production, and interest payment. Implications: Increasing the ceiling for loan amount approved for farmers and curbing excessive bureaucratic procedures would ensure minimal diversion of the loans, higher income for the farmers, and hence better repayment rates. Originality: The distinctiveness of this study is viewed from the context of the COVID 19 pandemic within which data was collected, thus capturing how the pandemic situation played a role in access to and repayment of agricultural loans from the perspective of gender.

Measuring Time Preferences Using Stated Credit Repayment Choices

This paper explores consumers’ repayment decisions and their time preferences. We do this through a hypothetical study using a stated-preference approach. In our experiment, participants are asked to make repayment decisions over time, under different loan sizes. We report five choice trajectories: minimum delay, monotonically decreasing, trajectory with one contradicting choice, trajectory with more than one contradicting choice, and maximum delay. These choice trajectories are taken into account in our modelling approach. Our analysis uses choice models that jointly estimate the discount rate and the probability of choice trajectories. Observed heterogeneity in repayment behaviour is further analysed using sociodemographic factors, and tested for the two loan sizes. We report heterogeneity in consumer repayment decisions, and what happens in the decision-making process for participants in different sociodemographic groups, for different loan sizes. These findings suggest that decision-makers can tailor their strategy for mitigating consumer debts by targeting different groups in the population demonstrating different choice behaviour and decision-making.

Perlindungan hukum terhadap kreditur selaku pengambil alih kredit pada kreditur

Credit take over is a payment made by a third party to a creditor, who will replace his position as a new creditor to the debtor. The absence of standard rules regarding the implementation of credit take over has resulted in non-standardization of the credit take over implementation process. The purpose of this article is to examine the legal protection of the parties in implementing the take over at Bank Jatim Banyuwangi Branch. This type of research is empirical legal research where the study was conducted at Bank Jatim Banyuwangi Branch. The results of research conducted by a Notary/PPAT in Banyuwangi are included in the category of subrogation by way of law (Article 1403 of the Civil Code). In the implementation of take over credit protection is obtained through the re-signing of the SKMHT at the time of the Roya Letter, and a certificate of proof of ownership of the guarantee has been physically issued by the initial creditor. The implementation of the take over for new creditors at Bank Jatim Banyuwangi Branch is obtained through the re-signing of the SKMHT which is the basis for making APHT when the roya letter, proof of credit repayment, and certificate of proof of collateral ownership have been physically issued by the initial creditor (bank). The initial check before the certificate of proof of ownership is issued by the initial creditor is carried out by issuing a Land Registration Certificate (SKPT) through the BPN.How to cite item: Firmansyah, F. (2021). Perlindungan hukum terhadap kreditur selaku pengambil alih kredit pada kreditur. Jurnal Cakrawala Hukum, 12(2), 178-186. doi:https://doi.org/10.26905/idjch.v12i2.5812

Determinants of Formal Credit Repayment Performance by Smallholder Farmers in Dale Sedi Woreda

Ethiopian economy is mainly depends on agriculture which provides employment for 85% of the labor force and accounts for a little over 50 per cent of the GDP regardless of its low production potential. To bolster the sector, improvement of agricultural technologies with sufficient loan provision is advisable. However, smallholders are reluctant to repay again. This study therefore attempted to investigate the factors that affect smallholder farmers’ formal credit repayment performance in Dale Sadie woreda. To do so, a microeconomic based analysis with multistage sampling technique (inclusion of both purposive and systematic random sampling) was used to determine the relevant sample size of the study. To analyze the data, both descriptive and inferential (Tobit regression) methods were utilized. The result of the study revealed that respondents’ age, educational level, smallholder farmers of being protestant, orthodox, and Muslim religious followers, and loan repayment ratio were significantly and positively affect repayment performance, Moreover, farm households’ family size and marital status of being widowed were statistically significant and has a negative impact on repayment performance. Therefore, responsible bodies should be involved to increase the repayment performance of small holder farmers. Keywords: repayment performance, defaulters, Dale Sadie woreda, kebele DOI: 10.7176/JESD/12-17-01 Publication date: September 30 th 2021

PERTANGGUNGJAWABAN PIDANA TERHADAP PEMBERIAN FASILITAS PEMBIAYAAN MODAL KERJA FIKTIF OLEH BANK MENGENAI PROSEDUR DOKUMEN DAN JAMINAN (Studi di Bank Muamalat Indonesia Cabang Kota Medan)

The basis of lending or financing by banks to debtor customers is trust by implementing the principle of prudence by applying the principle of knowing the customer. Documents and credit guarantees approved and received by the bank will then have several functions and one of them is to secure the repayment of credit if the borrower injured the promise. Fictitious crimes in the provision of credit facilities or working capital financing actually refer to various forgeries. There are 3 (three) types of forgery, namely making fake letters, falsifying letters, intellectual forgery. The criminal liability of banks contained in Law No. 10 of 1998 concerning Amendment to Law No. 7 of 1992 on Banking and Law No. 21 of 2008 on Syariah Banking is cumulative criminalization meaning that in addition to being sentenced to prison or also sentenced simultaneously in accordance with its mistakes.Keywords: Bank, Financing, Fictitious and Criminal Liability

Financing Agribusiness: Potential Determinants of Financial Inclusion for Smallholder Rural Farming Communities in Kenya

The purpose of this article is to empirically examine and compare the factors or determinants of financial inclusion in commercial banking institutions, microfinance banks, mobile banking platforms and table banking groups (informal banking groups) in Kenya. The data used in the study were obtained from 631 small and micro-sized (SMS) farming enterprises in Kenya. We use probit model to empirically establish the factors that determine the probability of small and micro-sized farming enterprises in accessing agricultural credit from the four major lending institutions. Also, we apply Heckman selection model to establish the determinants of agricultural credit rationing. OLS model is used to investigate the determinants of agricultural credit delinquency rates in the lending institutions. The results show that female-owned SMS farming enterprises are likely to access less agricultural credit amount from table banking groups, own small farms with no title deed and own less valued assets compared to male-owned SMS farming enterprises which access agricultural credit from commercial banks and microfinance banks. Further results revealed that household dependency ratio was a significant determinant factor in agricultural credit access from mobile banks, commercial banks and table banking groups. Additionally, agricultural credit delinquency in mobile banking is significantly reduced by distance to the banking agent. The availability of mobile banking agencies within village centres would considerably enable agri-entrepreneurs to make credit repayment within the required period.

Loan Settlement Performance of Oromia Credit and Saving Share Company Borrowers and Its Determinants in Ada’A Barga District, Oromia National Regional State, Ethiopia

In developing countries like Ethiopia Microfinance institutions are playing an essential role in poverty reduction; to provide the provision of micro-credit, savings, and other services to the poor that are excluded by the commercial banks for collateral and other reasons. However, there is a loan repayment problem, which discourages rural finance organizations from promoting and extending credit. Therefore, this study focuses on identifying the factors affecting the loan repayment performance of OCSSC borrowers in Ada’a Barga district, Oromia National Regional State, Ethiopia. Purposive and random sampling technique was used to select 139 sampled respondents. Both primary and secondary data sources were used for this study. Descriptive statistics and t-test and chi-square test analyses were employed to compare defaulters and non-defaulters with the explanatory variables. Also, binary logit econometric model was used to examine the factors that affect credit repayment performance of the selected sampled household borrows of OCSSC. The result showed that out of 139 chosen respondents, 56 were defaulters and 83 were non-defaulters. A total of twelve explanatory variables were included in the empirical model and out of the total hypothesized explanatory variables involved in the model, age, educational level, celebration of social ceremony and participation in off/non-farm activities were positively and statistically significantly affected loan repayment performance at 1% significance level. Moreover, livestock ownership positively affected loan repayment at 5% 1% significance level. On the contrary purpose of borrowing and family size was negatively and significantly affected loan repayment performance at 5% and 10% significance level. Therefore, the study recommended that the identified significant variables have to be a springboard for further interventions by financial institutions, stakeholders and policymakers to come with a breakthrough to significantly decrease or even avoid defaulting problems., Keywords: Binary logit; defaulters; loan repayment; non-defaulters; OCSSC DOI: 10.7176/JESD/12-15-04 Publication date: August 31 st 2021

Farmers’ Behaviour towards Agricultural Credit in Tiruppur District

Agriculture is the backbone of India’s economy. It plays a predominant role in deciding the nation’s GDP and in establishing the standard of living of dependants. At present, with advancement in technology and due to urbanization, the role of agriculture is declining. The viability of investment becomes doubtful as most of the farmers are in the poverty line. Agricultural growth is possible only with adequate finance and employment of appropriate technology. The implementation of new techniques also requires finance. The financial requirement of farmers can be set off through the credit facilities provided by various financial institutions. The main aspect of agricultural credit scheme is to provide and ensure supply of required finance to the needy people. So, the financial institutions have to create awareness on the credit facilities available and satisfy the increasing credit needs of the agricultural sector. Further, the beneficiaries of credit facilities may also face certain problems in availing and repayment of credit. In this regard, the present study focuses on farmers’ behavior towards agricultural credit in Tiruppur District. The sample respondents required for the study have been selected by employing multistage random sampling technique. The association between demographic variables and farmers’ behavior towards repayment of agricultural credit was analyzed by using chi-square test and their problems in obtaining credit was examined with Henry Garrett’s Ranking Technique. It was found that there is a significant association between age and repayment of agricultural credit by the farmers. Further, it was noticed that the most important problem faced by the farmers in the study area is the high rate of interest charged by the banks and other financial institutions.

Pengembalian Kredit dalam Hal Meninggalnya Debitur pada Lembaga Perkreditan Desa (LPD) Buduk, Mengwi Kabupaten Badung

Village Credit Institution is a financial institution located in the Pakraman village which was established based on regional regulations and local awig-awig. In credit repayment, there are some factors that cause credit cannot be returned by the debtor, one of which is when the debtor dies. The problems examined in this study are the factors that cause the debtor to be unable to return credit to the Buduk Village LPD, and how to return credit to the Buduk Village LPD in the event the debtor dies. The type of research used is the empirical legal research with sociological approach and the fact approach. The results illustrate that the factors that cause the debtor to be unable to return credit to the Buduk LPD are bankruptcy of the business, the debtor's payment ability, the debtor's health, the debtor's death. Then, the procedure of credit refund at the Buduk LPD, namely the amount of the loan or principal will be subject to loan rate from the principal amount paid by the debtor, if the debtor dies, the credit return is delegated to the heirs by submitting a death certificate first.

Loan Repayment Performance of Oromia Credit and Saving Share Company Borrowers and Its Determinants in Ada’A Barga District, Oromia National Regional State, Ethiopia

In developing countries like Ethiopia Microfinance institutions are playing an essential role in poverty reduction; to provide the provision of micro-credit, savings, and other services to the poor that are excluded by the commercial banks for collateral and other reasons. However, there is a loan repayment problem, which discourages rural finance organizations from promoting and extending credit. Therefore, this study focuses on identifying the factors affecting the loan repayment performance of OCSSC borrowers in Ada’a Barga district, Oromia National Regional State, Ethiopia. Purposive and random sampling technique was used to select 139 sampled respondents. Both primary and secondary data sources were used for this study. Descriptive statistics and t-test and chi-square test analyses were employed to compare defaulters and non-defaulters with the explanatory variables. Also, binary logit econometric model was used to examine the factors that affect credit repayment performance of the selected sampled household borrows of OCSSC. The result showed that out of 139 chosen respondents, 56 were defaulters and 83 were non-defaulters. A total of twelve explanatory variables were included in the empirical model and out of the total hypothesized explanatory variables involved in the model, age, educational level, celebration of social ceremony and participation in off/non-farm activities were positively and statistically significantly affected loan repayment performance at 1% significance level. Moreover, livestock ownership positively affected loan repayment at 5% 1% significance level. On the contrary purpose of borrowing and family size was negatively and significantly affected loan repayment performance at 5% and 10% significance level. Therefore, the study recommended that the identified significant variables have to be a springboard for further interventions by financial institutions, stakeholders and policymakers to come with a breakthrough to significantly decrease or even avoid defaulting problems., Keywords: Binary logit; defaulters; loan repayment; non-defaulters; OCSSC DOI: 10.7176/RJFA/12-9-05 Publication date: May 31 st 2021

Actuarial Study on Equal Progressive and Equal Ratio Progressive Repayment Model

Equal progressive repayment method and equal ratio progressive repayment method are two kinds of repayment modes which are widely used in countries and regions where individual housing loan businesses flourish internationally. Firstly, starting from cash flow generated during repayment process, modeling loan repayment process, obtains relations between payment, principal and interest in general repayment mode; secondly, uses relational formula to generate equal progressive (withdrawal) repayment method and equal ratio progressive (withdrawal) repayment method next payment, principal and interest mathematical expression; Finally through case analysis give two kinds of repayment methods applicable to housing groups provide reference for financial institutions to introduce diversified repayment methods.When buyers handle mortgage loans, financial institutions generally offer two kinds of repayment methods: equal principal repayment method and equal principal repayment method. Equal principal repayment means equal amounts of loans within repayment periods, repayment of principal amount per month (month) and interest generated during that period, i.e. fixed assets per month (month). Equal interest payment method is to add principal sum of mortgage loan sum interest sum then share each repayment period (month) namely each period of period for fixed. With rapid economic development of our country, residents’ consumption demand has changed greatly, and the concept of advanced consumption gradually accepted by people. Financial institutions have created many new types of loan repayment methods to satisfy people’s consumption demand such as single debt service payment maturity repayment method equal progressive repayment method mobile combination repayment method check-in payment method double week supply relay loan circulation loan balloon loan hole loan etc. Most of these innovative repayment methods are used in short-term consumer loans while residents mortgage loans are long term loans and belong to banks’ high quality assets. Shao Lei and Mr Chen Yonghong pointed out that from America Japan and Hong Kong China such as private housing mortgage lending business booming countries and regions actual situation such as progressive repayment method and equal progressive repayment method is one of two most popular repayment modes internationally especially welcomed by newly married couples and young entrepreneurs. However, these two kinds of repayment methods are complicated, coupled with computer settings and other reasons, currently in China temporarily less used by banks.In our country loan consumption mode gradually accepted by ordinary people. In our country common loan repayment mode includes one-time repayment method equal principal interest repayment method equal principal repayment method. Besides three common repayment modes mentioned above, there are other kinds of progressive repayment methods and equal progressive repayment methods which are commonly used internationally, although these two kinds of repayment methods are less used by banks in China than in China. However, in countries where individual loan business flourish, two kinds of consumer credit repayment modes are very popular. This paper establishes mathematical models of equal ratio progressive repayment method and equal progressive repayment method by using annuity theory in financial mathematics, and analyzes the suitable crowd of these two kinds of repayment methods.