Policy to Reduce Interest Rates for People's Business Loans (KUR) through the Character and Capacity Approach of MSMEs in Cimahi City

Abstract

The main problem that occurs in every MSME is one of them regarding capital where to start a business and for business development, namely the lack of credit loans from banks. The reason is the lack of information, socialization and coordination about the products offered by banks regarding funding or capital. Besides the reluctance to come to the bank because there is a sense of reluctance and burdensome bureaucracy, especially on guarantees or collateral which is a requirement for making loans. This study aims to identify and analyze the policy of reducing interest rates on people's business loans through a character and capacity approach to MSMEs in Cimahi City. The method used in this research is qualitative research, which is research that uses a scientific background, with the intention of interpreting the phenomena that occur using the case study method. The research was carried out in Cimahi City to 25 micro business actors. The findings of this study are the need for education to change the Character and Capacity of SMEs in a sustainable manner by providing motivation or Character Building so as to increase the confidence of business actors to visit banking and financial statement training. The factors that become obstacles in the distribution of People's Business Credit for MSMEs are a. Bureaucracy, the requirements are quite complicated such as business financial reports where not all business actors have simple financial reports so that business actors are constrained in making loans. b. Debtors need time to complete the legality of their business and in terms of guarantees, it is often found that they are still in the form of AJB and/or SHM with the names of other people still listed. c. Quota. Loans disbursed to MSMEs run out quickly because the demand is so high that when customers need capital, they have to wait for information from banks, which is often not informed/socialized.