Factors That Influence Farmers In Taking Credit At PT. Bank Rakyat Indonesia (Persero) Tbk Sisingamangaraja Branch Unit Katamso

Feb 27, 2025 by ADMIN 128 views

Factors Affecting Farmers in Credit Taking at PT. Bank Rakyat Indonesia (Persero) Tbk Sisingamangaraja Branch Unit Katamso

Introduction

The agricultural sector plays a vital role in the economy of Indonesia, and the government and various financial institutions have been supporting this sector by providing credit to farmers. PT. Bank Rakyat Indonesia (Persero) Tbk Sisingamangaraja Branch Katamso Unit offers credit as a solution to increase farmers' business capital. However, despite the availability of this facility, many farmers face various factors that influence their decisions in taking credit. This study aims to understand the reasons for farmers in taking credit, analyze the factors that influence them, and know changes in income before and after obtaining credit.

Background of the Study

The agricultural sector in Indonesia is a significant contributor to the country's GDP. However, farmers often face challenges in accessing credit, which is essential for their business growth. PT. Bank Rakyat Indonesia (Persero) Tbk Sisingamangaraja Branch Katamso Unit offers credit to farmers, but the process of lending itself can be a significant factor in influencing their decisions. This study aims to investigate the factors that affect farmers in taking credit at this bank and to identify the changes in their income before and after obtaining credit.

Methodology

This study used a descriptive analysis method, Likert scale, and different tests to collect data from 30 bank customers involved in agricultural businesses. The data were collected through a survey, and the findings were analyzed to identify the factors that influence farmers in taking credit.

Findings

The findings of this study show that the main reason for farmers in taking credit in banks is for venture capital, investment, and meeting family needs. This indicates that farmers are very dependent on credit access to develop their businesses and improve their welfare. The most dominant factor in taking credit by farmers in the bank is the process of lending itself. The easy and transparent process in applying for credit is one of the main considerations for farmers in making decisions. If the process is complicated or too many requirements, farmers tend to be reluctant to apply for credit, even though they need funds for their business.

Factors Influencing Credit Taking

The findings of this study identify several factors that influence farmers in taking credit at PT. Bank Rakyat Indonesia (Persero) Tbk Sisingamangaraja Branch Unit Katamso. These factors include:

Process of lending: The easy and transparent process in applying for credit is one of the main considerations for farmers in making decisions.
Interest rate: The interest rate charged by the bank is a significant factor in influencing farmers' decisions in taking credit.
Collateral requirements: The requirement for collateral is a significant factor in influencing farmers' decisions in taking credit.
Credit amount: The amount of credit offered by the bank is a significant factor in influencing farmers' decisions in taking credit.
Repayment terms: The repayment terms offered by the bank are a significant factor in influencing farmers' decisions in taking credit.

Changes in Income

The findings of this study also show that there is a decrease in farmers' income after receiving credit. This can be caused by several factors, such as the use of inefficient funds or instability in the price of agricultural products. If the capital obtained is not managed properly, the expected results are not achieved, so the impact of the credit is not optimal. This shows that although access to credit is important, good financial management is also very necessary so that farmers can use credit effectively and have a positive impact on their income.

Conclusion

This study provides valuable insight into the factors that influence credit collection by farmers and the importance of financial management. The findings of this study show that the process of lending, interest rate, collateral requirements, credit amount, and repayment terms are significant factors in influencing farmers' decisions in taking credit. The study also shows that there is a decrease in farmers' income after receiving credit, which can be caused by several factors, such as the use of inefficient funds or instability in the price of agricultural products. This study provides a reference for financial institutions to develop programs that are more in accordance with the needs of farmers.

Recommendations

Based on the findings of this study, the following recommendations are made:

Financial institutions: Financial institutions should provide credit access to farmers in a way that is easy and transparent.
Financial management training: Financial institutions should offer financial management training to farmers to help them manage their credit effectively.
Good ways of managing agricultural businesses: Financial institutions should offer good ways of managing agricultural businesses to farmers to help them increase their income and quality of life.

Limitations of the Study

This study has several limitations, including:

Sample size: The sample size of this study is limited to 30 bank customers involved in agricultural businesses.
Data collection method: The data were collected through a survey, which may not be representative of all farmers in the region.
Data analysis method: The data were analyzed using descriptive analysis methods, which may not be able to identify the underlying factors that influence farmers' decisions in taking credit.

Future Research Directions

This study provides a foundation for future research in the area of credit taking by farmers. Future research should aim to:

Investigate the factors that influence credit taking by farmers in other regions: Future research should investigate the factors that influence credit taking by farmers in other regions to identify the common factors that affect farmers in different areas.
Develop a model to predict credit taking by farmers: Future research should develop a model to predict credit taking by farmers based on the factors that influence their decisions.
Investigate the impact of credit on farmers' income: Future research should investigate the impact of credit on farmers' income to identify the factors that affect their income.
Q&A: Factors Affecting Farmers in Credit Taking at PT. Bank Rakyat Indonesia (Persero) Tbk Sisingamangaraja Branch Unit Katamso

Q: What is the main reason for farmers in taking credit in banks?

A: The main reason for farmers in taking credit in banks is for venture capital, investment, and meeting family needs. This indicates that farmers are very dependent on credit access to develop their businesses and improve their welfare.

Q: What is the most dominant factor in taking credit by farmers in the bank?

A: The most dominant factor in taking credit by farmers in the bank is the process of lending itself. The easy and transparent process in applying for credit is one of the main considerations for farmers in making decisions.

Q: What are the factors that influence farmers' decisions in taking credit?

A: The factors that influence farmers' decisions in taking credit include:

Process of lending: The easy and transparent process in applying for credit is one of the main considerations for farmers in making decisions.
Interest rate: The interest rate charged by the bank is a significant factor in influencing farmers' decisions in taking credit.
Collateral requirements: The requirement for collateral is a significant factor in influencing farmers' decisions in taking credit.
Credit amount: The amount of credit offered by the bank is a significant factor in influencing farmers' decisions in taking credit.
Repayment terms: The repayment terms offered by the bank are a significant factor in influencing farmers' decisions in taking credit.

Q: What is the impact of credit on farmers' income?

A: The findings of this study show that there is a decrease in farmers' income after receiving credit. This can be caused by several factors, such as the use of inefficient funds or instability in the price of agricultural products. If the capital obtained is not managed properly, the expected results are not achieved, so the impact of the credit is not optimal.

Q: What is the importance of financial management in credit taking?

A: Financial management is very important in credit taking. If the capital obtained is not managed properly, the expected results are not achieved, so the impact of the credit is not optimal. Financial management training should be offered to farmers to help them manage their credit effectively.

Q: What are the recommendations for financial institutions?

A: The following recommendations are made for financial institutions:

Financial institutions: Financial institutions should provide credit access to farmers in a way that is easy and transparent.
Financial management training: Financial institutions should offer financial management training to farmers to help them manage their credit effectively.
Good ways of managing agricultural businesses: Financial institutions should offer good ways of managing agricultural businesses to farmers to help them increase their income and quality of life.

Q: What are the limitations of this study?

A: This study has several limitations, including:

Sample size: The sample size of this study is limited to 30 bank customers involved in agricultural businesses.
Data collection method: The data were collected through a survey, which may not be representative of all farmers in the region.
Data analysis method: The data were analyzed using descriptive analysis methods, which may not be able to identify the underlying factors that influence farmers' decisions in taking credit.

Q: What are the future research directions?

A: Future research should aim to:

Investigate the factors that influence credit taking by farmers in other regions: Future research should investigate the factors that influence credit taking by farmers in other regions to identify the common factors that affect farmers in different areas.
Develop a model to predict credit taking by farmers: Future research should develop a model to predict credit taking by farmers based on the factors that influence their decisions.
Investigate the impact of credit on farmers' income: Future research should investigate the impact of credit on farmers' income to identify the factors that affect their income.