An Analysis on the Factors Affecting Credit Selection In BPR to Increase Competitiveness

Abstract

Bank Perkreditan Rakyat (BPR) is a part of  the  banking  financial institutions  apart from the commercial  banking. .One of the activities of the BPR is to distribute the credits as done by the commercial banks. The problems of BPR as micro financial institutions. In doing their business to  distribute  the credit up to certain amount, are  the  commercial banks  which  have more  competitive advantages, in both  the price  and facilities provided. The objective of this research is to identify the factors influencing the customers in making decisions to take the credit at BPR. By identifying the determinant factors in choosing the banks, BPR can use it to improve their services to the customers and at the same time BPR can use it as a strategy in giving credit to the customers or debtors. The method used in this study was regressive logistic method, which was  used to  identify  what factors determine the customers to choose credist at BPR. The conclusion is that the procedures and personality of the staffs are the main factors making the customers choose credits at BPR.