Lending Model: Micro Credit Risk By Joint Liability

Abstract

This study aims to test risk credit of micro business group which uses joint liability model. This study used a descriptive method which can be collected by doing a five-step survey. Data was analyzed quantitatively which focused on calculating the risk of gaining an optimal model.  From the obtained data, the lowest risk is gained from convection otherwise the biggest is gained from animal farm. In term of business support, Batik needs the highest support otherwise food and beverage need the lowest support. Then, in term of loan facility, Batik needs on the highest level of loan otherwise food and beverage needs on the lowest one. Moreover, Batik or convection gains 34,04% in term of income’s improvement, on the other hand,  food and convection only improves on 9,64%.

Keywords: Risk, Lending Model, joint liability