Solutions to reduce the credit default and non-performing loans.

Abstract

A study of methods to reduce the loss from the default debt and Non-performing loans (NPLs) which aims to study the information and find the cause of the loss from the default debt and NPLs, as well as solving the problem of default and returning the revenue to the bank. Both primary and secondary data are collected from the questionnaires of debtors who are in arrear for 0 - 3 months and NPLs. The study uses a random sampling of 140 NPLs debtors in accordance with Taro Yamane's principle, the statistical values are frequency, percentage, average, standard deviation  from  Likert Scale. The study found that the causes of default are the situation of the economic crisis - Covid 19 and Natural disasters, resulting in reduction income, higher family expenses, poor economic conditions, and the increase in prices of consumer goods . Therefore, the student has proposed solutions by offering new promotions, refunding interest and giving discounts on debt repayments on top of the old repayment promotion. Which encourage more debt repayment .