THE INFLUENCE OF 5C’S DIMENSIONS ON CREDIT APPROVAL TOWARDS CREDIT QUALITY ( A CASE STUDY OF SMALL ENTERPRISE MEMBER IN MELATI CREDIT UNION, DEPOK )

Abstract

This research analyses the Influence of 5C’s dimensions towards credit quality: A case study of Small Enterprise Member in Melati Credit Union in Depok, West Java. A survey was conducted on 100 respondents who are small enterprise and member of Melati Credit Union. Data analysis that used is multiple linear regressions with least squares equation and test hypothesis using t-statistics for testing the partial level of 5%. It also tested the classical assumptions that included tests of normality, multicollinearity test, heteroscedascity test and autocorrelation test. This shows the availability data has been qualified using multiple linear regressions equation model. The result indicates that capacity and capital have no partial significant influence towards credit quality. The variables character, collateral and condition have partial significant influence towards credit quality. Predictive ability of five variables to credit quality in this study is 73.3% while the remaining 26.4% is affected by other factors, which exclude in this research.