Loan Institutions Research Articles

Impact of Institutional and Non-institutional Agricultural Credit on Farmers-income and Constraint Analysis in Telangana, India

The present study is to analyse Impact of institutional and non-institutional Agricultural credit on farmers income and Constraint analysis. The study was conducted in 3 districts, 6 mandals, 12 villages and 120 sample farmers were selected for the study. Cost of cultivation (cost concepts) and income measures were used to analyse impact of agricultural credit on farm household income. Garette’s ranking technique was used to analyse the constraints faced by farmers in availing Agricultural credit. The cost of paddy cultivation was ₹78212.78 for institutional farmers and ₹80,726.78 for non-institutional farmers. ₹62050.96 is the Net Return for institutional farmers, whereas ₹54879.66 is for non-institutional farmers. Institutional farmers had a return on investment per rupee of 1.81, while non-institutional farmers had a return of 1.69. The major constraint faced by farmers is delays in loan disbursement. Agricultural credit has a positive impact on farm income. Therefore, the increase in institutional loans has improved the borrower farmers' economies. Timely disbursement of loans, simplifying the application procedure/documentation procedure and educating farmers about agricultural loans are suggested to improve crop loans availing in institutions.

Urgensi Perlindungan Hukum terhadap Konsumen Lembaga Pinjaman Online Ilegal di Era Revolusi 4.0

Online lending institution is a product of the 4.0 revolution. Its emergence has had many positive impacts on the economy, but on the other hand it has also raised several problems including misuse of personal data, intimidating collecting, and other problems caused by unlicensed or illegal online lending institutions. This study aims to identify the urgency of legal protection for consumers of illegal online lending institution.The method used in this study is normative juridical method by examining library materials or secondary data. The results showed that there are substance problems in legal protection for consumers of illegal online loan institutions in the era of revolution 4.0 which has implications for the ineffectiveness of existing regulations. Therefore, it is urgent to form new regulations that are able to regulate specifically, firmly, and thoroughly so as to create responsive laws, in order to create comfort and security for consumers of online lending institutions in Indonesia.

Effects of Digital Credit on Small Business Performance in Obunga, Railways Ward, Kisumu County, Kenya.

Small and Micro Enterprises play an important role in economic development of any nation by harnessing human capital, use of raw materials and technology. They require enough funds to facilitate expansion of operations, develop new products, hire new staff and acquire new facilities. Lack of capital and financing conversely has been identified as a major factor affecting their performance leading to their failures. Innovations in financial technology in the form of digital credit have taken advantage of these financing gaps and have come up with powerful tools to mitigate financing barriers faced by small businesses. This study sought to address the effects of digital credit on small business performance in Obunga, Railways ward in Kisumu, Kenya. The business performance was determined through operating cash flow, Sales volume and Net profit margin. Asymmetric Information theory and Default Risk Theory of Credit were selected to anchor this study. The study adopted descriptive research design. The target population was 454 Small and Micro Enterprises while the sample size was 212 Small and Micro Enterprises. The study adopted both stratified and simple random sampling techniques. Primary data was collected using structured questionnaires and interviews. Secondary data was collected through reviewing available records regarding digital credit and small business performance. The study adopted content validity. The data collected was analyzed using the Statistical package for social sciences version 24.0. Data was analyzed using descriptive statistics. The study findings conclude that the performance of the SMEs could be seen from profit margins, sales when they access digital credit.The study in addition suggests that the fast growth of fintechs had increased the cost of borrowing to SMEs and their repayment problems even though they offer flexible loan contracts to SMEs who have the ability to determine their own preferred loan repayment schedule. The study recommends the managers and owners of SMEs in Obunga ward to adopt an entrepreneurial mind-set that would support their ability to better gain financial access from various financial institutions Based on the study findings, it is also recommended that the government mobile loan institutions should consider lowering the costs involved in lending the credit. Lastly, the study recommends the managers and owners of SMEs in Obunga ward to make use of available flexible repayment options to borrow what their businesses actually require.

Education loan repayment: a systematic literature review

AbstractEducation is a significant contributor to human capital. Financial assistance for education through institutional loan serves as the key element for human development, and loan repayment without default makes the education loan product self-sustainable. The systematic review aims to study the various articles related to education loan repayment (ELR) using bibliometric analysis approach and R studio software with the help of biblioshiny package. The study analyses 812 articles published in the Scopus database between 1990 and 2022. The review identifies most relevant authors, most cited articles, publication trends, keywords and themes, and trending topics. The review finds that research in the domain of ELR is at an increasing trend with a growth rate of 7.2% and, in the year 2022, the highest number of scientific publications, that is, 72 articles, was published. The review exhibits that existing research in the field has mainly focused on themes such as repayment burden, financial literacy, financial education, student debt, income, mental health, and loan defaults. The study concludes that highly cited work in educational loan repayment is in the field of medicine, highlighting salary as the key factor for educational loan repayment, and loan repayment is incentivized by the federal government to serve the designated underserved areas through service option loan repayment programs. Methods on designing and marketing new approaches to loan repayment can be researched in future with relation to human resource recruitment and retention by the employers.

The role of the Lendtech sector in the consumer credit market in the context of household financial exclusion

Research background: According to the World Bank (2020), about 60% of adults in developing countries do not use formal financial services. Furthermore, according to the Polish Association of Loan Institutions (2022), about 3 million Poles use loans, most of them obtained online. Among the reasons for more than a decade of growth of interest in the non-bank consumer lending market there are the development of modern technology applications in finance and the establishment of the Lendtech sector. Purpose of the article: The main goal of the paper is to verify the role played by the Lendtech (LT) sector in the consumer credit market in the context of household financial exclusion. The following research questions were asked: Do credit-excluded households take advantage of LT services and, if so, to what extent? What are the behaviours and preferences of those who use consumer credit offered by LT? Do socio-demographic characteristics determine consumer use of loans offered by LT and, if so, what are they? Is the use of loans offered by LT due to credit exclusion or other factors? What action should be taken by participants in the digital consumer loan market interested in its inclusive direction? Methods: The paper uses the following methods: critical analysis of the literature, Kruskal-Wallis test, Mann-Whitney test, and nonparametric regression algorithm: k-nearest neighbors, as well as inductive inference methods. The data used is primary in nature and comes from a nationwide survey, September 2022 (CAWI method) of 1,200 Poles, of whom 200 respondents are Lendtech customers. The quota selection applied made it possible to reflect characteristics corresponding to the population of customers of lending institutions registered in BIK databases. Findings & value added: The article is a pioneering study based on an independent scientific survey, devoted to the Polish LT services market considered in terms of its relationship with one of the types of financial exclusion: credit exclusion. The most important conclusion is that people at risk of credit exclusion find a financing substitute in the LT sector, and thus it plays an important role in reducing financial exclusion, while maintaining the principle of creditworthiness verification.

Tawadhu Attitude and Service Performance: Moderate Role of Self-Concept

Abstract This study aims to investigate and evaluate the impact of: (1) Islamic training and development towards service performance, (2) tawadhu attitudes towards service performance, (3) the moderating role of self-efficacy in the effect of Islamic training and development towards service performance, and (4) the role of self-efficacy in moderating the effect of tawadhu attitude on service performance. The population in this study were all Muslim employees at cooperative and sharia savings and loan institutions in the DIY Province, Indonesia. The approach for choosing sample in this research is purposive sampling, with a number of respondents being 160 respondents. The results of the study found that: (1) Islamic training and development had a significant effect on service performance, (2) the attitude of tawadhu had a significant effect on service performance, (3) self-efficacy had not been able to strengthen the influence of Islamic training and development on service performance, and (4) self-efficacy has not been able to strengthen the influence of tawadhu attitude on service performance.

Ascertaining the Inference of Bank Internal Default Probabilities Variations on Variable Rate Institutional Loan Prepayments

This paper aims to evaluate an inference of bank internal PDs (Default Probabilities) on subsequent prepayments of variable rate institutional loans. Since variable rate loans hardly present an economic motivation for early prepayments in that they would not offer a cheaper refinancing alternative, we test the conjecture of a correlation between improvements in obligors’ creditworthiness (as reflected by negative changes in Bank Internal PDs) and subsequent loan prepayments, as obligors might be tempted to renegotiate more advantageous terms (lower credit spreads) with their lenders. The analysis is purported to serve as an early warning mechanism for banks pursuing the Basel III internal rating-based (IRB) approach for unexpected inflows of liquidity in the near future. We use Machine Learning (ML) ensemble methods to forecast potential prepayments and perform a conditional prepayment analysis to make an inference on the prepayment amounts and the prepayment timing distributions while controlling for macroeconomic and corporate idiosyncratic characteristics.

WHO IS THE MOST AUTHORIZED TO ERADICATE ILLEGAL FINANCIAL INSTITUTION ?

Illegal financial institutions have repeatedly appeared and disappeared in the community. Illegal banks or savings institutions disguise their businesses as travel agents or public fund savings institutions called arisan. At the moment, there have been emerging illegal online loan institutions (Pinjol). In 2021, illegal online loans (Pinjol) become a trending topic in Indonesia. Illegal lending has become a long-standing issue in society. The authorities have carried out the eradication of illegal lending. However, illegal borrowing is never completely eradicated and is always present in the community. Illegal borrowing has also caused a lot of community problems. This research aims to examine the illegal borrowing in the midst of society. This research uses a normative juridical method. This research concludes that eradicating illegal lending is the responsibility of the police, not the responsibility of the Indonesian Financial Services Authority (OJK). Even though illegal lenders operate in the financial industry, the Indonesian Financial Services Authority has no authority over the illegal financial industry. The authority of the Indonesian Financial Services Authority has been confirmed in Law of the Republic of Indonesia Number 21 of 2011. The illegal financial industry does not only exist in the financial technology industry, but has also emerged repeatedly in the conventional financial industry, such as illegal banks, fraudulent investments, and credit unions.

Mekanisme Eksekusi Sita Jaminan Aset Kripto di Indonesia

Cryptocurrency is a type of virtual currency that works similarly to real money and enables users to virtually send payments for transactions involving business. With the development of crypto assets today, several pawn and loan institutions accept crypto assets as collateral objects. In the case of pawning, default can also occur which requires that the collateral from the debtor be confiscated in the event of default. The purpose of this study is to determine the legal strength of crypto assets used as collateral objects and to find out the execution mechanism for crypto asset confiscation in Indonesia in the event of default. This study used a normative juridical research method for its research. The type of information used in this study is secondary information, specifically information found through library research. The result of this research is that crypto assets can be used as collateral objects, but not as main collateral. Crypto assets as collateral objects already have strong legal force, this is based on Book II of the Civil Code, Law no. 10 of 2011 concerning Amendments to Law Number 32 of 1997 concerning Commodity Futures Trading, Regulation of the Commodity Futures Trading Supervisory Agency Number 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Crypto Asset Market on the Futures Exchange. In terms of regulating the confiscation of crypto assets, it can be said that currently in Indonesia itself there are no special regulations and special institutions that regulate the confiscation of crypto assets. But the process of confiscation of crypto assets can be carried out with procedures such as foreclosure of other material guarantees.

Credit risk management and the performance of Nigeriandeposit money banks

We have used a multiple regression model to identify the impacts of the variables of credit risk managementon the Nigerian deposit money banks’ performance from 2000 to 2020. The estimation was completed usingthe ordinary least squares method with E-Views 12. The data was sourced from the Nigerian Stock Exchange forinformation and theStatistical Bulletinof the Central Bank of Nigeria. The outcome determined that return on equity(ROE) is negatively correlated with the nonperforming loan/loan and advances ratio. Last but not least, the ROEmeasurements of the deposit money banks in Nigeria show a substantial correlation between the ratios of advancesand loans to nonperforming loans, loan loss provision to loans and advances, and capital adequacy. These ratiosare positively correlated with each other and negatively correlated with the capital adequacy ratio. We adviseeffective surveillance of pre- and post-deposit financial institution loans for the early detection of problematic debtsthat won’t be repaid according to schedule and for the thorough analysis of prospective projects as indicated inthe financial statement given by the intended client (cash budget, income statement). Accurate identification ofrealistic projects and repayment terms based on the customer’s past performance will be achieved.

PENGARUH BISNIS KELUARGA TERHADAP MANAJEMEN SUMBER DAYA MANUSIA

The objective of this study was to investigate the local resource potential and migrant workers’ family welfare. The data were analyzed through Structural Equation MODELING (sem) or so-called Linear Structural Equation (LISREL) to measure the connection of resources in the workers’ origins and poverty. The results show that both human dan natural resources do not significantly affect the walfare of migrant workers’ families. Hence, the Local Government (Regency) is expected to increase financeial resources such as banking institutions, cooperatives, savings and loan institutions, finance and so on, besides increasing the number of physical resources such as markets and roads.

Jumping over the paywall: Strategies and motivations for scholarly piracy and other alternatives

Despite the advance of the Open Access (OA) movement, most scholarly production can only be accessed through a paywall. We conduct an international survey among researchers (N = 3304) to measure the willingness and motivations to use (or not use) scholarly piracy sites, and other alternatives to overcome a paywall such as paying with their own money, institutional loans, just reading the abstract, asking the corresponding author for a copy of the document, asking a colleague to get the document for them, or searching for an OA version of the paper. We also explore differences in terms of age, professional position, country income level, discipline, and commitment to OA. The results show that researchers most frequently look for OA versions of the documents. However, more than 50% of the participants have used a scholarly piracy site at least once. This is less common in high-income countries, and among older and better-established scholars. Regarding disciplines, such services were less used in Life & Health Sciences and Social Sciences. Those who have never used a pirate library highlighted ethical and legal objections or pointed out that they were not aware of the existence of such libraries.

A Framework for Illegal Online Loan Risk Using WordCloud and Big Data Analytics

Information technology has provided many conveniences in community activities. Big data on the Internet benefits many things, especially risk information that occurs without being careful in conducting transactions and credit activities online. This study analyzes online credit risk using ten variables related to online credit risk. The data set used in this paper is sourced from the Internet by using keywords that have been determined using the Uniform Resource Locator (URL) from different websites. The research method used in this study is an experimental method by classifying word variables related to online credit risk through data collection, initial data processing with a word cloud generator, and data analysis with python programming, then evaluation and validation of results. Variables analyzed such high loan interest, small loan ceiling, personal data in the App, old approval, the collector is coming, administrative costs, not yet registered with the OJK, unofficial loan institutions, consumer data protection, and cost transparency. Data collection techniques by means of questionnaires were carried out to online loan money borrowers to explore more in-depth information. The results of the analysis that has been carried out with the python programming language using the pandas, matplotlib, and seaborn libraries produce the Small Loan Ceiling variable, which greatly influences the consumer data protection variable with a value of 0.99. An in-depth analysis of these variables found that credit with a ceiling is ineffective.

Banking Crisis in Ghana: Major Causes

The concept of banking crises is a global phenomenon and many nations of the world has suffered one or more banking crises. The economy of Ghana in recent times has been greatly shaken due to the banking crises that has overwhelmed it’s banking sector. Over the past decade, Ghana has been hit by diverse banking crisis that has seen some banks and savings and loans institutions being collapsed with many others also being consolidated. This paper outlines the main causes of the banking crises that occurred in Ghana, such as poor corporate governance and high non-performing loans. The study revealed that the banking crisis that Ghana suffered recently could very well be avoided if the regulatory body – Bank of Ghana performed its duties effectively and efficiently. From the study, it can be concluded that if the “banks in question” practiced a well vexed internal control system – the crisis could have been averted or reduced to the barest minimum.

Knowledge Management and Practices of Real Estate Valuation in Turkey

The purpose of this research is to examine knowledge management (KM) and changes in the real estate (RE) valuation (V) profession in the case of Turkey, which is among the countries that are not fully transparent in RE investments, and to compare them with good practise examples. The increase in RE prices around the world, which started with the conditions of the COVID-19 period, while financial institution REV process and also creates dissatisfaction for buyers and sellers. While the world is experiencing an inflationary process, the rapid change in RE values ​​has made information management even more important in V in countries where there is no transparency in RE transactions. In this study, market players, KM in V accessible databases in V, software and web portals for valuers and companies, V workflows, number of RE sales with known transaction price information by year, number of RE sales with unknown transaction price information by year, value objection data by year, KM systems, public data sharing platforms, and legislation are looked at in the context of how they are used in the sample country. Literature research has been conducted in the field of information management since 2001 in the RE sector in the sample country and compared with world examples. In REV, the KM deficiencies needed to make more accurate value estimations for the benefit of credit institutions, collateral financing institutions, buyers, sellers, housing loan institutions, REV companies, and valuers have been researched. With its recommendations, good practise examples in the field of RE and REV in the world in KM are included. This study aims to be a reference source for future studies and discussions in this field by compiling knowledge on how KM is applied and used in the field of REV.

Web-based SIA Pranata Sejahtera Using Laravel

Pranata Sejahtera Cooperative is a savings and loan institution provided by Soegijapranata Catholic University for its employees. Based on interviews conducted with the treasurer and officers of the cooperative, the cooperative faces several problems. Some records exist using semi-manual methods, such as recording transactions from deposits, loans, and registered members. The next problem, cooperatives have experienced losses due to fraud in management financialBased on the problems experienced by the Pranata Sejahtera Soegijapranata cooperative, the researcher provides a solution for making a web-based accounting information system with the Laravel framework.

Institutional Strengthening of Local Community Savings and Loans Groups: A Comparative Study of Mosque-Based and Non-Mosque-Based

This study aimed to describe comparatively the institutions of mosque-based savings and loan groups and non-mosque-based savings and loan institutions. This study also described the institutional relationships of savings and loan groups and mosque institutions, implications, and forms of strengthening group institutions to be competitive, independent, and sustainable. Researchers collected data through observation, interviews, and focused group discussions. In analyzing the data, the researcher first did sorting, categorizing, and grouped according to the needs of the analysis. The results showed that the mosque-based savings and loan institution was formed on a close emotional relationship with fellow mosque congregations. Such groups are formed out of concern for helping fellow congregation members of the mosque. Meanwhile, non-mosque-based savings and loan groups were formed to submit a revolving fund loan to the management of the activity management unit. The relationship between savings and loan group institutions and harmonious mosque institutions makes mosque activities quite lively. Institutional strengthening of mosque-based savings and loan groups is related to strengthening worship; strengthening the understanding of Islamic teachings; strengthening religious social activities; strengthening social security; and strengthening productive economic business activities. Meanwhile, strengthening non-mosque-based savings and loan groups, in addition to strengthening forms such as mosque-based savings and loan institutions, also needs to strengthen group management.

Credit facility for horticultural sector in India – An empirical study

Working with the secondary sources of empirical data (2009–10 to 2018–19), the present study tries to show the status of agricultural credit facility with special reference to horticultural sector in India. Tabular analysis with simple compound annual growth rate (CAGR) has been done in 2020. In case of crop loan (short-term credit), agriculture and horticulture have no difference and the system of delivery is also similar. Horticulture finance includes loans for development of fruit orchard, poly-house, green house development and marketing of such produce. Agricultural credit is vital in India for 86.2% small and marginal farmers for capital formation. Financial support in horticulture was lacking. Productivity credit inter alia as evinced in term of growth rates of area (CAGR=1.56%), production (CAGR=2.72%) and productivity (CAGR=1.28%) shows better performances compared to agriculture. But fund allotment in government (govt.) budget for horticulture remains almost constant (CAGR=0.86%). Study suggested for more investment (public and private) in horticulture since it contributes 29.2% of agricultural GDP and provides nutritional security. Popularization of microcredit, farmers’ awareness and improve technologies for delivery of institutional loan can be ensured. Diversion of crop loan must be checked. Study also highlights different govt. schemes for overall development of the horticulture sector.

Financial Empowerment of Farmers Through Agricultural Credit by Commercial Banks: A Descriptive Analysis

According to the economic survey of India (2020-2021) stated that the total food production in the nation recorded at 296.65 million tonnes in the financial year and it has been increased by 11.44 million tonnes in the financial year 2019. The Indian government has set the goal to procure 42.74 million tonnes from the central pond in the financial year 2021. Similarly, the output of horticulture produce was estimated at 326.6 million tonnes in the financial year 2020. The sugar production has increased to 26.46 metric tonnes from 2019 to 2020. India is one of the prominent exporters of farm products across the world. The institutional loan is considered to play a very crucial role in the farm sector growth and development in India. The admission and delivery of rural credit are slanted in favour of healthier gifted regions and within the similar region posh towards better-off families. Agricultural credit is important to the farm credit system in India due to the capital accessibility of the farmers. It helps them to procure various raw materials such as seeds, fertilizers, land and other capital equipment. The agricultural credit is to be made accessible and available to agricultural and allied activities to promote agricultural output. The developing country like India, need greater support from the farmers for inclusive growth and development. This present study is followed the descriptive and analytical methods of research. Data for the present analysis is purely based on secondary data sources. The secondary information has been collected from various published reports such as NABARD and Reserve Bank of India for various years. During the 2004-2005 period, the target was aimed by the commercial banks was Rs.57000 crores. But the actual disbursement took place with Rs.81481 crores. It is evident from data sources that the disbursement amount was consistently increased from 2004-05 to 2007-08. The agricultural loan has been disbursed with Rs. 125477 crores, it was a huge increase as compared to the previous year disbursement of Rs. 81481 crores. It was reached 156850 crores rupees during 2007-2008

Deposit and Loan Guarantee Institutions and it’s Role in Restoring Confidence in the Iraqi Banking Sector

Pacing from the part of deposits and loans in supporting banking stability, any peril that threatens this part constitutes direct trouble to the banking system. Thus, should develop the mechanisms to cover and guarantee the rights of depositors (deposit guarantee), and mechanisms to cover banks from remitment of bank credit and cover them from ruin and ruin through the establishment of an institution guaranteeing loans, which represents an abecedarian demand to guarantee and stabilize the banking system and restore lost Confidence in the Iraqi banking system. Consequently, the exploration problem surfaced from a set of questions: Do deposit and loan guarantee institutions lead to the banking system's stability? Does this affect the degree of stability of deposits and attract further deposits, especially since deposits within the banking system are (23), while there's a chance (77) of the financial mass outside the banking system? As well as the question, will the bank credit increase after the loan institution guarantees this credit? Therefore, cranking the Deposit Guarantee Law and approving the Loan Guarantee Law will contribute to the anticipated part in restoring Confidence in the Iraqi banking system? It represents the fundamental problem of exploration, primarily since the Deposit Law, despite its blessing, has not been enforced.