Nonrecourse Loan for Female Group in National Program of Community Empowerment in Rural Area

Abstract

Loan and saving activity for Female Group in PNPM Mandiri for rural community (PNPM-MPd) is an activity granting capital for female group possessing loan and saving business. In general, this activity is aiming at developing loan and saving business in rural area, providing financing access for micro level business, fulfilling the need of basic social capital and strengthening female activity and encouraging the reduction of poor family and creating job vacancy.Usually, credit is always complemented by additional guarantee. PNPM MPd has different scheme because credit granted is non recourse loan. It is due to that the load need no additional guarantee or recourse in the form of movable and immovable asset, property right or personal guarantee. Therefore, there is no recourse referral from debtor to creditor. Several experts note that this is an unsecured loan. In fact the term used is not appropriate. Unsecured load is basically different from non recourse loan because nonrecourse loan still requires guarantee. It belongs to feasibility credit because other experts also note that it is nonrecourse feasible credit.Feasibility measurement for this kind of credit is based on the ability to return the for basic debt, to pay for interest and other costs during predetermined period of time. Usually, this type of credit is granted to bonafide company and also to businessman whose business has good prospect. Despite other consideration, in PNPM MPd, credit might be granted to small scale business such as for micro credit and middle scale macro credit with good record of restitution.

Keywords: female group, loan and saving, nonrecourse loan, feasibility measurement