Implementation of People’s Business Credit Loans for Micro-Business Owners

Dewi Sartika; Trisninawati Trisninawati; Tasya Vinanda; Nadia Sukma; Feny Agustina

doi:10.2991/978-94-6463-698-7_21

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Implementation of People’s Business Credit Loans for Micro-Business Owners

Authors

Dewi Sartika¹^{, *}, Trisninawati Trisninawati¹, Tasya Vinanda¹, Nadia Sukma¹, Feny Agustina¹

¹Universitas Bina Darma, Palembang, Indonesia

^*Corresponding author. Email: dewi.sartika@binadarma.ac.id

Corresponding Author

Dewi Sartika

Available Online 30 April 2025.

DOI: 10.2991/978-94-6463-698-7_21 How to use a DOI?
Keywords: People’s Business Credit; Non-Performing Loans; Bank Sumsel Babel; MSMEs
Abstract: Background: The Indonesian government has initiated the People’s Business Credit (Kredit Usaha Rakyat, KUR) program to support the development of micro, small, and medium enterprises (MSMEs) by enhancing micro-entrepreneurs access to capital. Objective: This study aims to examine the implementation of KUR loans for micro-entrepreneurs at Bank Sumsel Babel (BSB), Kapten A. Rivai Branch, Palembang. Methodology: A qualitative approach was employed, using descriptive analysis of data gathered through interviews with five informants and supported by direct observations. Results: The findings revealed several issues contributing to non-performing loans (NPLs) at BSB Kapten A. Rivai Branch, including declining business performance that adversely affected debtors’ repayment capacity, misallocation of loan funds intended for business capital to other uses, and poor payment ethics. These factors resulted in financial losses for the bank as debtors failed to fulfill their obligations. Furthermore, delayed repayments escalated interest rates, compounding the debt burden. Conclusion: To address these challenges, BSB Kapten A. Rivai Branch should implement regular monitoring mechanisms and enhance customer education on the terms and conditions of credit applications to ensure better loan management.
Copyright: © 2025 The Author(s)
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the 3rd International Conference on Management and Business (ICOMB 2024)
Series: Advances in Economics, Business and Management Research
Publication Date: 30 April 2025
ISBN: 978-94-6463-698-7
ISSN: 2352-5428
DOI: 10.2991/978-94-6463-698-7_21 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

ris enw bib

TY  - CONF
AU  - Dewi Sartika
AU  - Trisninawati Trisninawati
AU  - Tasya Vinanda
AU  - Nadia Sukma
AU  - Feny Agustina
PY  - 2025
DA  - 2025/04/30
TI  - Implementation of People’s Business Credit Loans for Micro-Business Owners
BT  - Proceedings of the 3rd International Conference on Management and Business (ICOMB 2024)
PB  - Atlantis Press
SP  - 193
EP  - 199
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-698-7_21
DO  - 10.2991/978-94-6463-698-7_21
ID  - Sartika2025
ER  -

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