CREDIT EVALUATION AND ITS RELATIONSHIP WITH ARREARS OF MSMES IN SAVINGS AND CREDIT COOPERATIVES-2021

Abstract

This study determined the degree of relationship between credit evaluation and delinquency of micro, small and medium-sized enterprises (MSMEs) in savings and credit cooperatives. The study had a quantitative approach, non-experimental design, cross-sectional, descriptive, and correlational level. The sample consisted of 274 credit files of MSME borrowers. The documentary analysis technique was used, as well as observation by means of a data sheet. Chi2 and Spearman's correlation with statistical significance level (p:0.05) were used. A 47.4 % of the files had an adequate credit evaluation with low risk of arrears; regarding credit history and arrears it was observed that 52.2 % had low risk of arrears; regarding payment capacity (39.8 %); indebtedness capacity (47.4 %); guarantee and arrears (44.9 %); the evaluation was adequate, and they are of low risk of arrears. There was a positive correlation between credit evaluation and arrears (r: 0.932; p:0.000). It was concluded that there is a perfect positive correlation between credit evaluation and arrears; as well as the other dimensions of credit evaluation with arrears of MSMEs in savings and credit cooperatives.