Determinants of Community Decisions To Lend Money To Loaners

Abstract

Purpose: To meet the needs of the public, the government has provided an official financial institution, which is subject to a certain series of administrations with all the calculations. The problem is that not all community members understand access to finance at these financial institutions. There are Islamic banking, BMT, and Sharia KSPPS, but in borrowing money they choose moneylenders. This problem is influenced by the ease of borrowing money from moneylenders, which are more flexible and the method of payment can be adjusted according to a special agreement between the customer and the moneylender. Disbursement of funds that can be done at any time according to the time needed, without being bound by conditions that are considered complicated by the customer. As a form of compensation, the interest charged by moneylenders is high and burdensome for the borrower. The risk of high-interest rates is often not taken into account by the borrower.
 
 Design/Methodology/Approach: The method for developing public financial literacy is what the moneylender's practice as the object of observation. To be realized as an effort for educational methods is to conduct an analysis of moneylenders in the community and explore how people depend on moneylenders, evaluate financial behavior in the community, deconstruct financial behavior and re-conceptualize public financial behavior.
 
 Findings: Socialization and acceleration of the marketing of financial products from the BMT, or official government financial institutions need to be carried out to prevent the level of community dependence on moneylenders, including by expanding financial literacy in the community, establishing management education methods, and implementing finance that is more inclusive in the community.
 
 Research, Practical & Social Implications: The necessities of life for each individual in the community will certainly not be the same, to be able to fulfill the purpose of these needs it is financed by the availability of funds or financial means. There are members of the community who are relatively able to meet their financing needs, but not a few of the community have not met their needs.
 
 Originality/Value: This study seeks to help the government and society in Indonesia to have a good education in terms of financial literacy, people need information and knowledge that currently in Indonesia there are many formal and legal financial institutions to help financial problems faced by people in Indonesia. Indonesian people are no longer just dependent on moneylenders or illegal financial institutions, which will instead trap them into new financial problems.

Public Preference for Micro Waqf Banks: An Effort to Increase Community Business

“…Preferences (X1), Business Motivation (X2), and Education Level (X3) are the independent variables. Next, we can observe the operating variables as follows: Then to analyze the data, the author builds a regression model that comes from various studies that can be used as references, including research (Adisti, 2021;Zayanie et al, 2019); (Ali et al, 2020) (Soemitra et al, 2022) and (F. Sungkawaningrum et al, 2022), as for the research design as follows:…”

“…because the log approach is simpler in interpretation and logs can eliminate common statistical problems such as heteroscedasticity (Ramadani et al, 2016) The test uses two sides with a significance threshold of 5% to examine the validity and reliability of the data that have been gathered, and the author's questionnaire instrument is then put to the test. Observe the model (F. Sungkawaningrum et al, 2022) by using the following formula:…”

“…But conceptually, literacy in Islamic finance is "a person's ability to use financial knowledge, skills, and attitudes in managing financial resources in accordance with Islamic teachings".(F. Sungkawaningrum et al, 2022) Micro Waqf Bank (BWM) is a sharia microfinance institution registered with OJK that aims to provide access to capital for small communities that do not yet have access to formal financial institutions. Micro-waqf banks are formed in the spirit of enlivening small community businesses.…”

“…However, the research conducted by the author is to analyze the level of literacy and the tendency of the community to choose microwaqf banks as business partners by analyzing indicators of educational level (F. Sungkawaningrum et al, 2022), preference indicators (Adisti, 2021), business motivation (Ramly et al, n.d.), and literacy (Soemitra et al, 2022). To see community preferences, financial literacy indicators are used, which refer to research Ali et al, (2020)…”

Informal Public Transportation in Mexico: Case Cuautepec - Mexico City

“…According to (Bielich-Salazar, 2009), informal transport operators must work daily for their income because they do not have an assured profit, according to (Sungkawaningrum, Hartono, Holle, Gustiawan, Siskawati, Hasanah & Andiyan, 2022) not all the population understand the needs to access to finance programs, so they do not request it. If they do not work one day, they do not receive any money.…”