The Factors that Influence the Loan Repayments of Credit Union Members and Performance Analysis on Credit Union
Abstract: Takera Credit
Cooperative has a high level of non-performing loans (NPL) at 6.60 percent with
greater emphasis on financial aspects in measuring its performance. The purpose
of this study includes: (1) To analyze the factors that influence the loans
repayments of the members of Takera Credit Cooperative to decrease NPL below 5
percent, (2) To evaluate the performance of Takera Credit Cooperative based on
the Balanced Scorecard approach, (3) To formulate the alternative policy that
become priority in improving the management performance of Takera Cooperative
Credit. This research paper uses the case study approach on the factors that
influence the loans repayments of the members, which is analyzed using logistic
regression and descriptive analysis. The performance of Takera Credit
Cooperative is analyzed with AHP in weighting scoring criteria on BSC perspective. The results of
this study are: (1) Loans is given to the members in the group with a
"common bond". To conduct financial literacy and monitoring members
whose age are above 30 years with low income, but with high loans ceiling and
interests rate. Maximizing profits from lending and investment assets. (2)
Encouraging members to meet obligations and utilize products. To provide
rewards for active members. To create a database of members, To employ special
staff for financial counseling and marketing. (3) Revising the Standard
Operational Procedure on management of loans risk. Providing shuttle service
for savings and loan installments. (4) To the competence of staff for education, training, and mentoring. To
provide access to the staff to the strategic information through the use of
management information system technology. To create individual staff
performance agreement form and developing remuneration packages.
Author: Achyar Rasyidi,
Muhammad Firdaus, Hendro Sasongko
Journal Code: jpadministrasinegaragg150041
