ANALYSIS OF CREDIT PREREQUISITES (CHARACTER, CAPACITY, CAPITAL AND CONDITION OF ECONOMY) ON CREDIT QUALITY IN MICROFINANCE INSTITUTIONS "KAEBAUK INVESTIMENTU NO FINANSA (KIF) SA"

Abstract

This study aims to analyze: the influence of character, capacity, capital and economic conditions of customers on credit quality in microfinance institutions "KIF SA". The population in this study was 122 people from all branches in Timor Leste, using a sample of 47 respondents. The data collection instrument used a questionnaire with a Likert scale, each of which has been tested and has met the validity and reliability requirements. The analysis method uses multiple linear regression with the help of the SPSS 20 program. The results of the analysis show that the character, capacity and economic conditions have a positive and significant effect on the credit quality of microfinance institutions "KIF SA" and capital has no effect on the credit quality of microfinance institutions "KIF SA". The results of these findings can be used as a source of information and reference for further research and these findings can also be used as empirical evidence for the microfinance institution "KIF SA" that credit quality can be improved through character, capacity and economic conditions.