Analysis of the Credit Granting Process on the Performance of the Berkat Bulukumba Savings and Loan Cooperative (Panampu Sub-Branch Office)

Abstract

This study investigates the credit granting process and its impact on the performance of Koperasi Simpan Pinjam Berkat Bulukumba, Panampu Branch Office. The objective is to explore how credit procedures are implemented, the factors that influence their effectiveness, and the implications for credit risk and cooperative performance. Employing a qualitative approach with a case study strategy, data were collected through in-depth interviews, direct observations, and cooperative documentation, and analyzed using Miles and Huberman’s interactive model. The results indicate that although formal procedures such as administrative verification and the 5C principle are adopted, their practical application is inconsistent, often influenced by social proximity and informal judgment. These inconsistencies have contributed to a rise in non-performing loans and weakened financial and institutional performance. The findings emphasize the importance of accurate signal interpretation and consistent risk management frameworks in cooperative lending. This study contributes to the theoretical discourse by contextualizing the application of Signaling Theory and the 5C model in microfinance institutions and offers practical insights into strengthening credit governance in cooperatives.