Repayment Time Research Articles

The Role of BMT NU Ngasem Jampet Branch in Increasing MSME Income in Jampet Market Through Rahn Financing

The purpose of this research was to describe the role of BMT NU Ngasem Jampet Branch in increasing the income of MSMEs in Jampet Market through Rahn Financing. The method used was qualitative. The results showed that the role of financing applied by BMT NU Ngasem Jampet Branch is in accordance with the objectives of Islamic financial institutions in general, namely improving the quality of the community’s economic business for the welfare of the community and its members. Especially in financing products, because the existence of this financing makes it a solution for MSMEs or market traders in the capital used to develop and improve their business than before. So that financing is one way for MSMEs or market traders to increase their business income. The success of BMT NU Ngasem Jampet Branch in carrying out work programs related to financing realized for MSMEs or market traders. This is evidenced by the implementation of financing carried out by BMT NU Ngasem Jampet Branch with several MSMEs or traders in Jampet Market who carry out financing totaling 22 members, but there are some members who have difficulty in terms of installments because their sales are still quiet unlike other traders. So that it makes the installments delay and makes the installment time longer. Meanwhile, members who experience business development and are smooth in financing installments and make the repayment time according to maturity. From the application of financing to 11 MSMEs in the Jampet Market, there was an increase in income for rahn financing with an average of 3.4% of income per month of May 2021.

PROSEDUR GADAI EMAS DIERA DIGITALISASI DENGAN AKAD QARDH PADA PT. BPRS AMANAH UMMAH KANTOR PUSAT LEUWILIANG

<p><em>The gold pawn procedure in the digitalization era at PT. BPRS Amanah Ummah. In Indonesia, there is a dualism of sharia pawning institutions, namely in sharia pawnshops and sharia banking, sharia pawnshops serve objects other than gold and the like. While Islamic banks do not accept pledges other than gold, of course this does not escape using two transaction techniques, namely Qardh and Ijarah contracts. As for the mechanism of the sharia gold pawn procedure at PT. BPRS Amanah Ummah is a customer must and must come to the bank with gold to be pawned, then the bank checks or checks the quality of gold and gold content brought by the customer. As for how to pay installments or pay off debts to the bank, customers can make payments using digital methods such as ATMs, Mobile Banking, funds, OVO, and Link Aja. However, this cannot be separated from the transaction, which often encounters several problems, namely, the calculation of the estimated gold both for extension and at the time of repayment. Therefore PT. BPRS Amanah Ummah must develop an information system for the extension and repayment of the gold pawn. To develop a system of relations between tables (RAT), Entity Relationship Diagram (ERD), and Data Flow Diagrams (DFD) to see the flow of the system, while to build the flow of this system used system development tools Miscrosof Basic net and Myiso database. which will be used later..</em></p>

Carrots or sticks in debt collection services? A voice metrics and text analysis of debt collection calls

PurposeAlthough phone calls are widely used by debt collection services to persuade delinquent customers to repay, few financial services studies have analyzed the unstructured voice and text data to investigate how debt collection call strategies drive customers to repay. Moreover, extant research opens the “black box” mainly through psychological theories without hard behavioral data of customers. The purpose of our study is to address this research gap.Design/methodology/approachThe authors randomly sampled 3,204 debt collection calls from a large consumer finance company in East Asia. To rule out alternative explanations for the findings, such as consumers' previous experience of being persuaded by debt collectors or repeated calls, the authors selected calls made to delinquent customers who had not been delinquent before and were being called by the company for the first time. The authors transformed the unstructured voice and textual data into structured data through automatic speech recognition (ASR), voice mining, natural language processing (NLP) and machine learning analyses.FindingsThe findings revealed that (1) both moral appeal (carrot) and social warning (stick) strategies decrease repayment time because they arouse mainly happy emotion and fear emotion, respectively; (2) the legal warning (stick) strategy backfires because of decreasing the happy emotion and triggering the anger emotion, which impedes customers' compliance; and (3) in contrast to traditional wisdom, the combination of carrot and stick fails to decrease the repayment time.Originality/valueThe findings provide a valuable and systematic understanding of the effect of carrot strategies, stick strategies and the combinations of them on repayment time. This study is among the first to empirically analyze the effectiveness of carrot strategies, stick strategies and their joint strategies on repayment time through unstructured vocal and textual data analysis. What's more, the previous studies open the “black box” through psychological mechanism. The authors firstly elucidate a behavioral mechanism for why consumers behave differently under varying debt collection strategies by utilizing ASR, NLP and vocal emotion analyses.

Mobile Loan Frequency of Repayment as a Predictor of the Financial Performance of SMEs in Urban Informal Settlements in Kenya

This study explored the effect of repayment timelines on the financial performance of SMEs in urban informal settlements in Kenya. This study adopts the descriptive survey design. Data were collected from 120 SMEs in the 6 wards of Mathare Sub- County. Data was collected using semi-structured questionnaires. It was analysed using descriptive and inferential statistics. From the study findings, it is evident that repayment timelines influenced the application for mobile loans. The ability to pay mobile loans without problems due to flexible repayment times also enhanced the performance of the respondents’ businesses. While loans with short repayment periods discouraged the businesses from borrowing due to immense pressure, long repayment periods were preferable since it meant that the stock purchased could be converted to cash. Budgeting could also be made easy due to the certainty of cash flow in long and flexible repayment periods. Lastly, a long repayment period meant that the intended use of the money borrowed could be realized. The study made the following recommendation based on the study objective. In this regard, most of the various mobile loan providers should put in place flexible repayment plans to make their loans appealing. They should also market their mobile loan products to make them visible since only 4, Safaricom-Fuliza, M-Shwari, Tala, and KCB-Mpesa were the most used. Civil society organizations in collaboration with mobile loan providers should also carry out capacity building campaigns among SMEs in informal settlements.

Employer-Sponsored Student Debt Repayment

This study investigates the welfare implications of allowing workers the option to dedicate their employer-sponsored retirement benefits to the repayment of their student debt. Using a partial equilibrium model, I find that this policy allows for increased consumption while young, while reducing repayment time by approximately 4.5 years. I estimate that the value of this policy to the median male graduate from the 2016/17 Baccalaureate and Beyond Longitudinal Study would be $7,401.60.

A Stabilization Fund for Countries Facing Market Turmoil

A state-contingent financing facility would be an effective way to help mediate the economic and financial shocks resulting from the COVID-19 pandemic. An SSB could mobilize large amounts of financial resources from the international capital markets and provide cash flow relief to sovereign debtors without market access on attractive terms that reflect both a country’s liquidity requirements and its ability to service its obligations without adding to financial stress. A synthetic stabilization fund (SSB) sponsored by a credible official sector institution could provide state-contingent financing much like traditional stabilization funds. Thus, the amount and timing of funds available to a country, as well as the amount and timing of repayment should be linked to the performance of a proxy for a country’s financial position, such as commodity prices or export revenues. Unlike a traditional stabilization fund, the initial capital of an SSB would be raised in the private markets with credit support from official and bilateral sources to assure long-term funding at reasonable cost.

Credit risk management in bank: Impacts of IFRS 9 and Basel 3

The expected loss approach (ECL) defined by IFRS 9 replaced the old incurred loss approach (IAS 39) in the international accounting standard setter. In Europe, the IFRS 9 are accompanied by new regulatory frameworks (BCBS), opinion, technical standards (EBA) which do not always provide the same methodological and operational implications of the accounting standard setter. Many aspects of IFRS 9 have been studied, but this paper analyzes its interdependencies and overlaps with the credit risk framework for financial intermediaries (also Basel 3). Using a case study, the purpose of this paper is to investigate the ECL, its main impacts on coverage ratio of a loan’s portfolio. The main findings are: usually, the rules laid down for Stage 1 of IFRS 9 do not reduce the excess coverage produced on a portfolio in bonis; in the presence of impaired loans IAS 39 generates a lack of funds; the lifetime ECL (Stage 2 of IFRS 9) imposes excess of provisions because it does not consider the effect of coverage produced by expected premiums; for loan portfolios with short repayment times, the excess of provisions produced by IFRS 9 compensates the lack of coverage of the capital requirement. From the academic research perspective, this paper contributes to the literature on ECL model in several ways. First, it adds knowledge to the research on the relationship between Credit Risk Management framework and accounting standard IFRS 9. Second, it also links our findings related to ECL approach with potential implications for the financial sector, policymakers and regulators.

Debenture as Alternate Scheme of Raising Investment Fund and Its Prospects under Ethiopian Company Law

With a view to attracting investors, the Government of Ethiopia has offered a variety of incentives and financing schemes. However, the incentives or loan options can be inadequate, susceptible to corrupt practices and inaccessible to many business undertakings. This article examines other possible options of raising investment fund privately from the general public by issuing debt security (debenture). Instead of looking for hand outs of governments or sole reliance on bank loan, investors can raise investment fund from the general public –even beyond national borders– by offering debenture bonds for public subscription. A debenture is debt security that entitles its holder to collect periodic interest until the loan is paid back. Compared to bank loans, raising investment fund through the instrumentality of debentures is more advantageous. The rate of interest, the volume of loan needed for running business, and the time for repayment can be determined by investors. Moreover, the loan is not generally subject to collateral. This article highlights the nature, form, and class of debenture under Ethiopian law, and discusses the legal requirements for the issuance of debenture, the amount of money that can be raised by issuing debentures, the status of debentures in Ethiopia, and legal safeguards for repayment of the loan.
 Key terms
 Debenture, Bond, Investor, Floating charge, Creditor, Debtor, Ethiopia

Empowerment of Small Businesses through The Implementation of Qardhul Hasan Financing

The research aims to describe Qardhul Hasan financing and recognize the problems faced in micro businesses in the city of Malang. The study was conducted on two research objects. The first study was on a used motorcycle dealer business that received Qardhul Hasan during the 2016-2018 period. The second study in 2019, was the implementation of Qardhul Hasan in small-scale creative economy traders, whose source of funding came from 2.5 percent of profits from used motorcycle dealers. The results showed that the implementation of Qardhul Hasan financing was quite profitable. Qardhul Hasan who is allocated to the creative economy group indicates a feeling of happiness and calm because loan repayments are not burdened with costs, besides having flexibility from the time of repayment. Economic actors managed to collect savings from repaying loan installments. Qardhul Hasan funding received a reasonably good response from economic actors. Qardhul Hasan loan recipients should be able to maintain trust and uphold the agreements that have been built. This study has implications for the development of Qardhul Hasan, namely strengthening the concept of Qardhul Hasan as loan financing, and strengthening groups for small businesses to run the Qardhul Hasan management mechanism JEL Classification: D14, Q21, G51

Water Debt Indicator Reveals Where Agricultural Water Use Exceeds Sustainable Levels

AbstractAgriculture overexploits water resources in many regions, as water stress metrics highlight. Tracing back the causes of water overuses and separately accounting for soil water, surface water and groundwater resources is an open challenge to monitor the sustainability of agricultural water use. We introduce the “water debt repayment time” indicator, measuring the time required to replenish water resources used for annual crop production. This indicator disentangles source‐ and crop‐specific water overuses at a high spatial resolution. Globally, we find that wheat and rice production critically overuses groundwater resources and cotton production overuses both surface water and groundwater. Locally, unsustainable production is found over the Sabarmati Basin and in the Chao Phraya Basin, where the repayment time exceeds 5 years in many cultivated areas. Critical overuses are also found over the High Plain and Indo‐Gangetic Plains, where the repayment times reach 50 years. Unsustainable irrigation is often a consequence of growing crops during local dry seasons.

NPA Woes SARFAESI – Brahmastra in Bankers’ Hands

One of the biggest challenges facing banks is the huge Non Performing Accounts. Even though the picture looks gloomy, there are effective tools in the hands of banks to recover NPA accounts. Among these tools, taking action under SARFAESI Act is the most powerful method to recover NPAs. Through SARFAESI action banks can recover their dues, without going through the hassles of filing a case in a civil court. The article presents the systematic approach for SARFAESI action and step-by-step procedure. There are certain eligibility criteria for taking action under SARFAESI, such as the minimum in account balance and the balance outstanding as a percentage of money already recovered from the borrower. The first step is to issue a Demand Notice giving 60 days’ time to the borrowers/mortgagors for paying the full dues. If the borrower/guarantor needs clarification on the contents of the notice, the bank has to send a reply for the same. After the notice period, the bank takes possession of the property. Such possession can be either actual possession or a symbolic possession. Possession notice is dispatched to the borrowers/mortgagors. It is also published in two newspapers. A fresh valuation is taken and the SARFAESI committee discusses and arrives at the floor price for auction. A sale notice is issued and the borrowers/ mortgagors are given 30 days’ time for repayment of dues. Steps are simultaneously taken for making the auction a success. E-auction is conducted and the sale is concluded. The sale proceeds are credited to the NPA account. The article gives certain Court judgments relating to banks taking action under SARFAESI Act. SARFAESI action will certainly bring the desirable results and the bank dues can be recovered within 100 days, if the steps are taken with utmost care and caution.

Metode Economic Order Quantity (Eoq) Sebagai Dasar Pengendalian Bahan Baku Tepung Terigu

Metode EOQ merupakan salah satu metode yang paling sering diterapkan untuk mengetahui jumlah persediaan bahan baku terbaik yang dibutuhkan perusahaan untuk menjaga kelancaran produksinya dengan biaya yang efisien. Metode ini sering dipakai karena mudah untuk dilaksanakan dan mampu memberikan solusi yang terbaik bagi perusahaan, hal ini dibuktikan dengan menggunakan metode EOQ tidak saja diketahui berapa jumlah persediaan yang paling efisien bagi perusahaan tetapi akan diketahui juga biaya yang akan dikeluarkan perusahaan dengan persediaan bahan baku yang dimilikinya dihitung dengan (Total Inventory Cost ) dan waktu yang paling tepat untuk mengadakan pembelian kembali (dihitung dengan Re-order Point). Untuk home industry roti mekar sari berdasarkan prasurvey belum mengatur pengendalian persediaan sesuai dengan yang diharapkan oleh perusahaan.Tujuan penelitian ini adalah untuk mengetahui besarnya jumlah pesanan , besarnya biaya persediaan , jumlah pembelian yang optimal bahan baku tepung terigu dengan menggunakan metode EOQ.
 Metode penelitian dalam hal ini dengan analisis deskriptif kuantitatif untuk membahas permasalahan yang sifatnya menguraikan, menggambarkan, membandingkan, suatu data atau keadaan, melukiskan dan menerangkan hasil penelitian sehingga dapat ditarik kesimpulan, Untuk menghitung besarnya EOQ dan ROP.
 Hasil Penelitian ini membuktikan bahwa home industry usaha roti sekarsari menerapkan metode Economic Order Quantity (EOQ)tahun 2017 dengan pembelian bahan baku nyang optimal. Maka terdapat adanya selisih penghematan pengeluaran total biaya untuk bahan baku gula sebesar Rp. 442.187 dan bahan baku tepung sebesar Rp. 691.574. Berdasarkan hasil analisis yang dilakukan, maka sebaiknya Home Industry Usaha roti sekarsari menerapkan metode Economic Order Quantity (EOQ) dalam menentukan kuantitas pembelian bahan baku yang optimal. Sehingga dapat meminimumkan total biaya yang dikeluarkan oleh perusahaan setiap tahunnya

DETERMINANTS OF POVERTY STATUS AMONG WOMEN FARMERS IN DEVELOPMENT EXCHANGE CENTRE MICROCREDIT OF KADUNA STATE, NIGERIA

The study was conducted to determine the poverty status of women farmers in Development Exchange Centre Microcredit of Kaduna State, Nigeria. The study utilized primary data collected through a questionnaire administered to 420 selected respondents distributed into 210 Development Exchange (DEC) participants and 210 non-participants using purposive and random sampling procedures. Data were analyzed using simple descriptive statistics, the FGT poverty model and Logit regression model. The result of the FGT poverty model revealed that the incidence of poverty among the farming households was 40% and 50% of participants and non-participants. These implied that 60% and 50% of participants and non-participants farm households were not poor. The result of the Logit regression showed that age, education, farm size, farm experience, income, crop output, level of living and access to DEC microcredit were significantly related to the poverty level of the women farmers. This implies that a unit increase in these variables will likely lower household’s head of being poor. The study, therefore, recommends that amount of credit facilities provided should be increased so as to increase productivity, time for repayment of credit facilities should be extended to more than one year and the programme should be extended to other farming communities in the State, so as to accelerate the reduction of poverty among rural women in the state and nation at large.

Development of Islamic microfinance: a sustainable poverty reduction approach

Purpose Though microfinance has been working for many years as a tool to eradicate poverty from its root, most of the least developed and developing countries are yet to significantly alleviate it from the society. The purpose of this paper is to focus on Shariah-based microfinance products in the context of sustainable poverty alleviation approach and provide them financial benefits to enhance their livelihoods. Design/methodology/approach Here, this qualitative study critically analyzes the basics of the sustainable Islamic microfinance to exterminate the level of poverty. Findings Islamic microfinance is a more ethical practice than the traditional motives of profit maximization, and it encourages extending the time of repayment if the debtors are in hardship. In some case, it suggests to give charity if the creditor has capability. Research limitations/implications Most importantly, research scholars and experts have already criticized the concept of conventional microfinance on the basis of various points, especially for its high rate of interest. Social implications Islamic microfinance is provided with a view to fulfill two tools simultaneously, i.e., social and financial inclusion. In this case, credits and Zakah can be given to the extreme poor people for satisfying basic needs. In terms of social responsibility, Islam encourages the people to be soft in case of collecting the lending money. Originality/value The study discoursed that sustainable Islamic Microfinance (IM) may be a promising future option to draw the attention of the religiously sensitive people toward the Shariah-based microfinance which can, in turn, mitigate the poverty level.

Development of binomial pricing model of shares and bonds for a life insurance company

The process of share price formation is studied in the article as well as a random process, and a model is developed that describes a random process that has characteristics close to the Brownian bridge, and realizes a multiplicative model of the bond price evolution with outpaced repayment time and normal value. The definition of a random process of forming a share price through a geometric Brownian bridge is also given. Since the Ukrainian insurance market is at the initial stage of development, and the country's economy is unstable, insurance companies need practical and reliable tools for calculating and forecasting the expected return on investment activity. And especially urgent for this particular type of activity is the issue of breakeven investment, as insurance companies can’t afford risky investment because of the specifics of their activities. As a research result, the level of investing in a risk-free asset for an insurance company of a cumulative type is calculated.

Financial Feasibility of Investing in Smallholder Cow-Calf Cooperatives in Baluran National Park

Livestock grazing is a major driver of human-wildlife confl ict in conservation areas. Currently, it is estimated that 3000 heads of cattle illegally grazing within Baluran National Park (BNP) in East Java. The recent research has suggested the potential of livestock system intensifi cation to reduce land-use and conflict through conservation priorities. The research goal was to investigate the fi nancial feasibility of starting intensive cow-calf cooperatives by smallholders in the BNP area. Data were collected using Farm surveys in a Criterion sampling design. Optimal herd management plans were generated using whole farm Linear Programming and fi nancial feasibility was assessed using Discounted cash-flow analysis and debt-servicing capabilities. Investment lifetime was set at 15 years and four alternative varieties of cattle were taken from Bali, Peranakan Ongole, Limousin and Simmental. Results show that investing in all varieties represents a positive investment opportunity. Bali cattle obtaining the highest NPV ($53.769), IRR (14,25%) and B/C ratio (1,13). Farmer income can be increased by 163% by combining additional Off-farm labor. However, debt servicing capabilities of cow-calf cooperative activities showed that the loan principal can only be repaid in the 10th year instead of the maximum eight years set by the government cow-calf credit scheme. We urge the government to reconsider either the grace period or the repayment time of the credit scheme to better fit the cash-fl ow characteristics of cow-calf enterprises.

Self-Fulfilling Debt Crises, Revisited: The Art of the Desperate Deal

We revisit self-fulfilling rollover crises by introducing an alternative equilibrium selection that involves bond auctions at depressed but strictly positive equilibrium prices, a scenario in line with observed sovereign debt crises. We refer to these auctions as desperate deals, the defining feature of which is a price schedule that makes the government indifferent to default or repayment. The government randomizes at the time of repayment, which we show can be implemented in pure strategies by introducing stochastic political payoffs or external bailouts. Quantitatively, auctions at fire-sale prices are crucial for generating realistic spread volatility.

Greece Crisis: Critical Analysis of Failure of Governance

<em>Greece, which is one of the world’s largest shipping powers, is suffering from financial crisis in Euro Zone. It has impaired the European Economy, besides having an impact on World Economy too. Greece is exposed to huge debt crises owing to IMF, Germany, Spain, Italy, other European Members and European Central Bank. Recently, Greece is trying to strike a deal with its creditors for extension of time for repayment of the loan and have also requested to increase the limit of emergency funding by European Central Bank. The Government has also taken many steps on domestic level to stop the liquidity easing from its financial system and markets. Today, Greece is at cross –road between the Government and the Governance. This Paper dwells on four aspects; first, critical analysis of Greece Economic Structure to know the actual economic condition of Greece. Second, in depth examining the debt portfolio of Greece to know the exposure of the Greece to the European Union Members, European Central Bank, IMF, Private Investors and also critical analysis of Greece Debt Structure along with repayment deadlines. Third, Greece Government’s decisions regarding finding the solutions to counter the financial crisis as to know how governance is more important than growth. And fourt, what would be the repercussions on Greece if it decides/ made to leave Euro Zone. </em>

Appraisal of Vegetable Marketers’ Access to Formal and Informal Credit

ABSTRACTAn effective credit system is essential for agricultural value chain development. It facilitates fulfillment of venture potential through access to appropriate technology. There is little information on credit accessibility among vegetable marketers and other participants in the value chain such as the input suppliers, processors, and transporters. Factors that drive participation of vegetable marketers in formal and informal credit sources were studied. A total of 480 retail vegetable marketers in major markets in Ibadan, Oyo State, Nigeria, were respondents. Primary data on socioeconomic characteristics, credit sources, and types of sources of credit were collected. Data were analyzed using descriptive statistics and logit regression. Most (83%) vegetable marketers were female and 31–40 years old (31%–67%). A minority of marketers had no formal education (38.13%) and were married (81.6%). Informal credit was accessed by 45.63% of the marketers, formal credit by 40.62%, and 13.75% had no access to any kind of credit. Marketers in the age range of 41–50 years (12.91%) had most access to formal credit; those aged 31–40 years had most access to informal credit (13.54%). Factors driving participation in formal credit were years of education, interest rate, and ease of application procedure; repayment time and ease of application influenced participation of marketers in the informal credit system. Informal credit was mostly available to marketers due to ease of application processing and repayment procedure.

Prompting Microfinance Borrowers to Save: A Field Experiment from Guatemala

Can microfinance borrowers use the discipline of regular loan repayments in order to accumulate savings if prompted to do so? In an experiment, we offered commercial savings products to the microfinance borrowers of Guatemala’s largest public-sector bank. We find that giving these borrowers the opportunity to develop a savings plan and be reminded of saving at the time of loan repayment caused no increase in the opening of savings accounts but led to balances among savers that were two and a half times those in the control. A second treatment arm that proposed a default savings contribution of 10% of the loan payment caused the fraction of clients using linked savings accounts to double, as well as elevated deposits among savers, leading to final savings balances that were more than five times the control. The savings treatments also generate faster pay down of debt and weakly better overall repayment performance, suggesting that simultaneous saving and borrowing can be complementary activities. A theoretical model shows that the simultaneous provision of debt and self-commitment savings products can also help a larger fraction of the population to eventually escape a debt-financed equilibrium.