Open AccessA review of risk rationing practice in islamic microfinance to achieve sustainable development goals in Term of Poverty in Indonesia
Author(s) -
Permata Wulandari,
Ruslan Prijadi
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/716/1/012107
Subject(s) - collateral , business , microfinance , credit rationing , sustainable development , actuarial science , finance , economics , interest rate , economic growth , political science , law
This study review risk rationing practice in Islamic microfinance to achieve sustainable development goals. Problems related to risk rationing from BMT are the collateral requirement for every financing, the absence of collateral insurance, and collateral fraud from customers. Focus on the importance of character, creating collateral as a formality, a family-based approach to collateral, no collateral for small financing, no specific collateral, outstanding collateral for trustworthy borrowers, business as collateral, and joint liability collateral are the solutions in the case of collateral requirement. Using collateral insurance and conducting indepth checking are also solutions to risk rationing faced by BMT.