Guidelines for solving credit approval problems of the Government Savings Bank, Mae Chai Branch

Abstract

The objective of this study were to: 1) to find out all the problems that have on processes of the approval of loans between the Government Savings Bank in Mea Chai branch Bank, Phayao Province with Retail Credit Approval Centre 9 in Chiang Rai Province. 2) including of operation for considering approve credit of Government saving bank. 3) to plan how to solve problems and actions more precisely.  The research by quantitative use of questionnaires as a data-collection method from the credit, officers total 53 people and customers of Government saving bank total 270 people.

The results revealed that  1)The main cause of the problem consists of  4 factors, the details are as follows  1.1) Work process  1.2) Employee  1.3) Customers  1.4) Collateral (finance)  Credit officers commented that most of the problems were mainly in the working process. The highest. second is employees misunderstood at work. (misunderstandings in communication.). The problem with the classify of borrowing objectives of the customer is at the lowest. On the customer's side, the majority of the problems occurred on the part of bank work process. Therefore, Employee and customers agree that’s process is complicated because documents used in the bank's credit approval have so many processes and always delayed. Also, customers must to take time for fill the form. In the part of recognizing details products of the bank because customers don’t have knowledge or information (maybe have few knowledge) about the bank's credit products and the last one is in the collateral section. with a high.  2) Suggestion about the solution to the problem that has been laid out with 3 Approaches  2.1) Improve the ways to do advertising of the bank products. Make good advertising that can acetract peoples to those products.  2.2) Improve information system.  2.3) Improve work system for employees.  From this research, the third approach was chosen. Begin by instructing each employee to study the details of the bank order. Including checking the documents to be correct and complete following of bank checklist. And make appointment for meeting a couple time per year  to consult about all the problem that they have and find out the solution together. At that meeting also help employees operate in the same direction. For example, solution is making a list of each customer has been created from the date of loan application in order to follow up and to be able to report the progress of each customer to supervisors and customers. Because the above methods are functional or operational level corrections that require a low budget and can be fixed immediately.