Analysis of the Influence of Internal, External, and Environmental Factors on Problematic Loans in Micro Credit Financing

Abstract

This study aims to analyze the influence of internal factors, external factors, and environmental factors on the occurrence of non-performing loans (NPL) in microcredit financing at PT Permodalan Nasional Madani (PNM) Mojokerto Branch. The research method used is a quantitative approach with descriptive analysis. Data were obtained from the microfinance service unit of PNM Mojokerto Branch, covering several work units with a total of 1,699 clients. The results of the study indicate that bank internal factors, debtor external factors, and environmental factors have a positive and significant effect on the occurrence of non-performing loans. These findings emphasize the importance of applying prudential principles, strengthening credit analysis, and mitigating external and environmental risks in an effort to reduce the NPL level in microcredit financing