A Conceptual Model of Credit Scorecard in Productive Loan
Agiananta Rizyamesa1, Raden Aswin Rahadi2.
This study is aimed to discuss variables involved in credit scorecard assessment
for granting agricultural credits. To get the variables, authors approached with
the synthesizing method or Knowledge Synthesis Method from 25 papers
related to the credit scorecard development in SMEs and Agriculture. This
study used 5 C’s of credit concept to group related variables and eliminated
which are not. It is found that from the five aspects of 5C’s, the character aspect
consists of management, relationship, credit history, good corporate
governance (GCG), behavior, and innovation. The capacity aspect consists of
liquidity, profitability ratio, indebtedness degree, repayment history, activity
ratio, financial growth, and expense ratio. The capital aspect consists of one
indicator, namely capital structure. The conditioning aspect comprises of
external factors of PESTEL, industry, and scope of a region in terms of
monitoring. The collateral aspect consists of one indicator, which is a
guarantee. All of these indicators will be a basic determinant of variables to
appraise credit risk quality of a borrower in the agriculture sector. The
limitation of this study is the scope limitation of conducting literature
synthesize in particular papers which are related to appraising borrowers who
are proposing productive loan, particularly in SMEs and the agriculture sector.
The finding of this study will be useful for financial institutions that are
responsible for developing assessments for borrower candidates in SMEs or
the agriculture sector. Further process of research is eligible to be conducted,
either qualitative or quantitative, in order to validate and improve the findings
in this paper.
Affiliation:
- Institut Teknologi Bandung, Indonesia
- Institut Teknologi Bandung, Indonesia
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