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Analysis of Credit Granting at PT Bank Nagari, Air Bangis Sub-Branch
Last modified: 2026-05-20
Abstract
This study aims to analyze the credit granting process at PT Bank Nagari Sub-Branch Office Air Bangis and to examine risk factors leading to default. The research applied a descriptive qualitative method using field research and library research. Data were collected through interviews with credit analysts and documentation review.
The findings indicate that the credit approval process has implemented prudential principles through the assessment of character, capacity, capital, collateral, and economic conditions. Repayment capacity is the dominant factor in determining credit approval, with installment limits set at 30–40% of the borrower’s net income. Collateral functions as risk mitigation rather than the main approval factor.
Default risk is generally caused by declining business turnover, weak financial management, and economic conditions. The handling of non-performing loans is conducted gradually through persuasive approaches, warning letters, credit restructuring, and collateral execution as a final measure. Overall, the credit analysis system has been implemented in accordance with procedures and risk management principles to maintain loan portfolio quality.
The findings indicate that the credit approval process has implemented prudential principles through the assessment of character, capacity, capital, collateral, and economic conditions. Repayment capacity is the dominant factor in determining credit approval, with installment limits set at 30–40% of the borrower’s net income. Collateral functions as risk mitigation rather than the main approval factor.
Default risk is generally caused by declining business turnover, weak financial management, and economic conditions. The handling of non-performing loans is conducted gradually through persuasive approaches, warning letters, credit restructuring, and collateral execution as a final measure. Overall, the credit analysis system has been implemented in accordance with procedures and risk management principles to maintain loan portfolio quality.
Keywords
Credit Analysis, 5C Principles, Credit Risk, Default.
References
Adriana, R., Putri, D. A., & Nugroho, S. (2024). Application of the 5C principle and post-disbursement monitoring in preventing non-performing loans in microcredit. Journal of Banking Management, 9(1), 45–58.
Antara. (2021). The impact of the COVID-19 pandemic on regional banking credit risk in Indonesia. Journal of Regional Economics and Finance, 6(2), 101–112.
Cutie, R. (2025). Analysis of credit granting procedures in regional development banks in supporting MSME financing. Journal of Indonesian Finance and Banking, 10(1), 22–35.
Fatihah, S. (2024). The effectiveness of implementing the 5C principle in reducing non-performing loans in micro banking. Journal of Accounting and Finance, 11(2), 67–79.
Fitriani, Y., Sari, M., & Putra, A. (2023). Credit risk analysis and non-performing loan levels in regional development banks. Journal of Risk Management, 8(3), 134–147.
Markov, A., Seleznyova, Z., & Lapshin, V. (2022). Credit scoring methods: Latest trends and points to consider. Journal of Finance and Data Science, 8, 180–201. https://doi.org/10.1016/j.jfds.2022.01.004
Prasojo, B. (2021). Analysis of credit feasibility prediction using the random forest method. National Journal of Technology and Information Systems, 7(2), 79–89.
Sari, D. (2020). Credit feasibility analysis as an effort to control banking credit risk. Journal of Economics and Business, 5(1), 55–64.
Sinaga, R. (2023). Implementation of the 5C principle in credit analysis in banking. Journal of Finance and Banking, 12(1), 15–28.
SumbarBisnis. (2025). Credit and NPL development of Bank Nagari amid regional economic challenges. SumbarBisnis Online.
Vebriyanti, D., Rahman, A., & Putri, N. (2024). Credit feasibility analysis using classification tree with oversampling techniques. Journal of Information Systems and Data Mining, 6(1), 40–52.
Setiawati, Dewi, Nurarafah, N., & Mardhatillah, F. (2025). Juridical analysis of default in credit agreements with fiduciary guarantees in Decision Number 850/Pdt.G/2020/PN Mdn. Scientific Journal of Law Faculty Students, Malikussaleh University, 8(3). Focuses on late-paying debtors, how judges determine default, and its legal consequences based on the Civil Code.
Nuralisha, M. A. (2023). Juridical review of legal responsibility in banking credit agreements in cases of debtor default. AL-MANHAJ: Journal of Islamic Law and Social Institutions. Examines responsibility and legal regulations when debtors fail to meet their obligations.
Antara. (2021). The impact of the COVID-19 pandemic on regional banking credit risk in Indonesia. Journal of Regional Economics and Finance, 6(2), 101–112.
Cutie, R. (2025). Analysis of credit granting procedures in regional development banks in supporting MSME financing. Journal of Indonesian Finance and Banking, 10(1), 22–35.
Fatihah, S. (2024). The effectiveness of implementing the 5C principle in reducing non-performing loans in micro banking. Journal of Accounting and Finance, 11(2), 67–79.
Fitriani, Y., Sari, M., & Putra, A. (2023). Credit risk analysis and non-performing loan levels in regional development banks. Journal of Risk Management, 8(3), 134–147.
Markov, A., Seleznyova, Z., & Lapshin, V. (2022). Credit scoring methods: Latest trends and points to consider. Journal of Finance and Data Science, 8, 180–201. https://doi.org/10.1016/j.jfds.2022.01.004
Prasojo, B. (2021). Analysis of credit feasibility prediction using the random forest method. National Journal of Technology and Information Systems, 7(2), 79–89.
Sari, D. (2020). Credit feasibility analysis as an effort to control banking credit risk. Journal of Economics and Business, 5(1), 55–64.
Sinaga, R. (2023). Implementation of the 5C principle in credit analysis in banking. Journal of Finance and Banking, 12(1), 15–28.
SumbarBisnis. (2025). Credit and NPL development of Bank Nagari amid regional economic challenges. SumbarBisnis Online.
Vebriyanti, D., Rahman, A., & Putri, N. (2024). Credit feasibility analysis using classification tree with oversampling techniques. Journal of Information Systems and Data Mining, 6(1), 40–52.
Setiawati, Dewi, Nurarafah, N., & Mardhatillah, F. (2025). Juridical analysis of default in credit agreements with fiduciary guarantees in Decision Number 850/Pdt.G/2020/PN Mdn. Scientific Journal of Law Faculty Students, Malikussaleh University, 8(3). Focuses on late-paying debtors, how judges determine default, and its legal consequences based on the Civil Code.
Nuralisha, M. A. (2023). Juridical review of legal responsibility in banking credit agreements in cases of debtor default. AL-MANHAJ: Journal of Islamic Law and Social Institutions. Examines responsibility and legal regulations when debtors fail to meet their obligations.
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