Analysis of The Influence of The 5c Principle on The Decision And Effectiveness of People’s Business Credit (KUR) for The Agribusiness Sector at BRI KC Purwokerto

Abstract

This study aims to determine and analyze the effect of the 5C principle on the decision and effectiveness of the distribution of People's Business Credit (KUR) for the agribusiness sector at BRI KC Purwokerto. The 5C lending principles are Character, Capacity, Capital, Condition of Economy, Collateral. This research was conducted from June-July 2024 at BRI KC Purwokerto. The data was collected by conducting interviews with People's Business Credit (KUR) initiators who have customers in the agribusiness sector using questionnaires and secondary data was obtained from written data documentation by BRI KC Purwokerto. The sampling method uses purposive sampling method or sampling by certain considerations. The number of respondents in this study were 100 credit initiators at BRI KC Purwokerto. The statistical method used was Structural Equation Modeling (SEM) analysis and measurement using a Likert scale to analyze the influence of the 5C principle on the decision and effectiveness of the distribution of People's Business Credit (KUR) for the agribusiness sector at BRI KC Purwokerto. The results showed that the Character variable had a significant positive influence on the KUR distribution decision in the agribusiness sector and on the effectiveness of KUR distribution in the agribusiness sector; and the Capacity variable had a significant positive influence on the effectiveness of KUR distribution in the agribusiness sector. Meanwhile, other independent variables do not have a significant influence on the dependent variable.

Keywords: 5C Principles, People's Business Credit (KUR), Agribusiness Sector, BRI KC Purwokerto