Pengaruh Character dan Capacity Debitur terhadap Keputusan Persetujuan Kredit pada PT Bank Perkreditan Rakyat (BPR) Mambal, Bali

Abstract

The Influence of Character and Borrower Capacity on Credit Approval Decisions at PT People's Credit Banks (BPR) Mambal, Bali. The main objective of national development is to create a just and prosperous society, with the banking sector playing a crucial role in supporting economic development through the provision of credit to individuals and companies. However, the province of Bali has experienced significant negative impacts due to the Covid-19 pandemic, particularly in the health and economic sectors. People's Credit Banks (BPR) in Bali have witnessed a decline in performance during the pandemic, especially in relation to non-performing loans. Therefore, BPR needs to exercise caution in granting credit by considering the character and capacity of borrowers. This study aims to examine the influence of character and capacity on credit approval decisions at PT Bank Perkreditan Rakyat (BPR) Mambal. The research population consists of 30 customers of PT Bank Perkreditan Rakyat (BPR) Mambal, selected through accidental sampling. The research instruments used include interviews, documentation, and literature review. The data were analyzed using descriptive analysis with the Structural Equation Model-Partial Least Square (SEM-PLS) method. The research findings indicate that the character and capacity of customers have a positive and significant influence on credit approval decisions. The implications of this study emphasize the importance for PT Bank Perkreditan Rakyat (BPR) Mambal to seriously consider the character and capacity of customers when making credit approval decisions. This approach will enhance the success and feasibility of the credit provided, reduce the risk of non-performing loans, and increase customer trust. The researchers also recommend that BPR conduct regular evaluations of customers and improve communication with them to ensure the preservation of their character and capacity. Additionally, leveraging appropriate information technology can optimize the customer evaluation and monitoring processes.