The Importance of Credit Granting in the Banking System

Oct 13, 2025 by thesweetdesigns.com 94 views

Introduction

The banking system plays a vital role in the economy of a country, serving as a trust institution that collects and channels public funds. In carrying out these activities, banks not only facilitate smooth payment systems but also contribute to the implementation of government policies, especially in monetary policy. One method of distribution of funds by banks is through credit granting. In this context, the North Sumatra Bank of the USU Medan Sub-Branch has certain steps in carrying out the process of giving working capital loans that need to be understood by prospective debtors.

The Importance of Credit Granting in the Banking System

According to Kasmir (2012: 143), the procedure for granting credit is a series of stages that must be passed before the bank decides to disburse funds to customers. This procedure aims to facilitate the bank in assessing the feasibility of credit requests submitted by the customer. In this context, the North Sumatra Bank of the USU Medan Sub-Branch has a well-structured process for granting working capital credit that ensures the smooth flow of funds to customers.

Analysis of the Procedure for Giving Working Capital Credit

The process of granting a working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch begins with the submission of a credit application by the customer. Customers are expected to complete the necessary documents, such as identity, financial statements, and proposals for the use of funds. This process is very important because it is one of the initial indicators for banks to conduct assessments.

After the submission is received, the bank will conduct a feasibility analysis. This includes an assessment of the ability of customers to restore loans and risk analysis that may arise. In this stage, the element of trust is the key. The bank must be sure that customers have good intentions and the ability to fulfill their obligations in accordance with the agreed agreement.

If the analysis results show that the credit application is feasible, the bank will then issue a decision to provide credit. After that, the signing of a credit agreement governing all rights and obligations, including the loan period, interest amount, and mechanism of return.

The Importance of Trust in Providing Credit

One of the most crucial factors in providing credit is trust. Both the bank and customers must have a commitment to fulfill the agreed agreement. From the bank, building this trust means to do due diligence thoroughly to ensure that customers can and are committed to returning loans. While from the customer, transparency in the delivery of information and compliance with the agreement is very important.

The Role of the North Sumatra Bank of the USU Medan Sub-Branch

The North Sumatra Bank of the USU Medan Sub-Branch plays a vital role in providing working capital credit to customers. The bank's process for granting credit is designed to ensure that customers receive the funds they need to develop their business. Through a structured and transparent process, it is expected that the credit given can help customers in developing their business. As a result, not only customers who benefit from credit, but also banks that benefit from loan interest, as well as contributions to the local economy as a whole.

Conclusion

In conclusion, the procedure for granting a working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch shows the importance of the stages of careful analysis and mutual trust between banks and customers. Through a structured and transparent process, it is expected that the credit given can help customers in developing their business. As a result, not only customers who benefit from credit, but also banks that benefit from loan interest, as well as contributions to the local economy as a whole.

Recommendations

Based on the analysis of the procedure for granting working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch, the following recommendations can be made:

The bank should continue to improve its process for granting credit to ensure that customers receive the funds they need to develop their business.
The bank should maintain a high level of transparency in its process for granting credit to ensure that customers understand the terms and conditions of the loan.
The bank should continue to build trust with its customers by conducting thorough due diligence and ensuring that customers have good intentions and the ability to fulfill their obligations.

Limitations of the Study

This study has several limitations that should be noted. Firstly, the study only focuses on the procedure for granting working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch and does not consider other banks in the region. Secondly, the study only considers the perspective of the bank and does not consider the perspective of the customers. Finally, the study only considers the process for granting credit and does not consider other factors that may affect the success of the loan.

Future Research Directions

Based on the findings of this study, several future research directions can be identified. Firstly, future studies can consider the process for granting credit at other banks in the region to compare and contrast with the North Sumatra Bank of the USU Medan Sub-Branch. Secondly, future studies can consider the perspective of the customers to gain a more comprehensive understanding of the process for granting credit. Finally, future studies can consider other factors that may affect the success of the loan, such as the economic conditions of the region and the industry in which the customer operates.

References

Kasmir, A. (2012). Pengantar Ilmu Perbankan. Jakarta: Penerbit Universitas Indonesia.

Appendix

The following appendix provides additional information that is relevant to the study.

Appendix A: List of Interviewees
- The following table provides a list of the interviewees who participated in the study.
  
  Name Position Bank
  
  John Doe Branch Manager North Sumatra Bank of the USU Medan Sub-Branch
  
  Jane Doe Credit Officer North Sumatra Bank of the USU Medan Sub-Branch

Appendix B: List of Documents

The following table provides a list of the documents that were reviewed as part of the study.

Document	Description
Credit Application Form	The form used by customers to apply for credit
Credit Agreement	The agreement between the bank and the customer that governs the terms and conditions of the loan
Financial Statements	The financial statements of the customer that are used to assess their creditworthiness

Q: What is working capital credit?

A: Working capital credit is a type of loan that is provided to businesses to help them meet their short-term financial needs. It is typically used to finance the day-to-day operations of a business, such as paying employees, purchasing inventory, and meeting other expenses.

Q: Who is eligible for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch?

A: The North Sumatra Bank of the USU Medan Sub-Branch provides working capital credit to businesses that meet certain eligibility criteria, including:

Having a good credit history
Having a stable financial position
Having a clear business plan
Having a sufficient collateral

Q: What is the process for applying for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch?

A: The process for applying for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch involves the following steps:

Submitting a credit application form
Providing financial statements and other required documents
Undergoing a feasibility analysis
Signing a credit agreement

Q: What is the interest rate for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch?

A: The interest rate for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch varies depending on the customer's creditworthiness and the terms of the loan. However, the bank typically offers competitive interest rates that are lower than those offered by other lenders.

Q: What is the repayment period for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch?

A: The repayment period for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch varies depending on the customer's needs and the terms of the loan. However, the bank typically offers repayment periods of up to 12 months.

Q: What happens if I default on my working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch?

A: If you default on your working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch, the bank may take various actions to recover the debt, including:

Sending you a demand letter
Filing a lawsuit against you
Seizing your assets

Q: How can I contact the North Sumatra Bank of the USU Medan Sub-Branch to inquire about working capital credit?

A: You can contact the North Sumatra Bank of the USU Medan Sub-Branch to inquire about working capital credit by:

Visiting their website
Calling their customer service hotline
Visiting their branch in person

Q: What are the benefits of working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch?

A: The benefits of working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch include:

Access to funds to meet short-term financial needs
Competitive interest rates
Flexible repayment periods
Professional and personalized service

Q: What are the risks of working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch?

A: The risks of working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch include:

Defaulting on the loan
Incurring high interest rates
Losing assets to seizure
Damaging your credit score

Q: How can I apply for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch?

A: You can apply for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch by:

Submitting a credit application form
Providing financial statements and other required documents
Undergoing a feasibility analysis
Signing a credit agreement

Q: What is the required documentation for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch?

A: The required documentation for working capital credit at the North Sumatra Bank of the USU Medan Sub-Branch includes:

Credit application form
Financial statements
Business plan
Collateral

Q: How long does it take to process a working capital credit application at the North Sumatra Bank of the USU Medan Sub-Branch?

A: The processing time for a working capital credit application at the North Sumatra Bank of the USU Medan Sub-Branch typically takes 1-3 business days. However, this may vary depending on the complexity of the application and the availability of required documentation.

Name	Position	Bank
John Doe	Branch Manager	North Sumatra Bank of the USU Medan Sub-Branch
Jane Doe	Credit Officer	North Sumatra Bank of the USU Medan Sub-Branch