Pengaruh Suku Bunga, Promosi Word Of Mouth, Brand Image, Jenis Produk Terhadap Pendapatan Melalui Keputusan Penggunaan Kredit Usaha Rakyat (Studi Kasus: BNI KCP Petisah)

Abstract

The increase in the distribution of People's Business Loans (KUR) every year has not been in line with the level of utilization by MSME actors, including at BNI KCP Petisah which is one of the active KUR distributors in Medan City. In fact, KUR is designed to expand access to financing and strengthen the capacity of small businesses to increase revenue. This reflects that the lack of optimal use of KUR is closely related to certain factors that affect the decision to use, which can ultimately limit the development and income of MSME actors. This study aims to analyze the influence of interest rates, word of mouth promotion, brand image, and product type on the decision to use KUR, as well as its impact on MSME income. The approach used is quantitative with the Partial Least Square–Structural Equation Modeling (PLS-SEM) analysis method. Data was obtained through the distribution of questionnaires to 82 food MSME actors who are active debtors of KUR at BNI KCP Petisah. The results showed that interest rates had a significant negative effect on the decision to use KUR, while word of mouth, brand image, and product type had a significant positive influence. In addition, the decision to use KUR has proven to have a positive impact on increasing MSME income. These results provide useful empirical input for banks and the government in designing financing strategies that are more effective, adaptive, and on target in supporting the growth of MSMEs.