THE EFFECT OF INTEREST RATES AND NON-PERFORMING LOANS ON THE DISTRIBUTION OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)
Keywords:
Interest rates, Non-Performing Loan (NPL), Credit distribution, Micro, Small and Medium Enterprises (MSMEs), Systematic Literature Review (SLR)Abstract
This study aims to determine the influence of interest rates and Non-Performing Loans (NPL) on the disbursement of Micro, Small, and Medium Enterprises (MSMEs) loans. The method used is Systematic Literature Review (SLR) with data obtained from Google Scholar in the period 2015–2025, using 10 articles that have passed the screening process.
The results of the study show that the influence of interest rates on MSME loan disbursement tends to fluctuate from time to time. However, from the period 2018 to 2023, the influence of interest rates has been positive and significant. Meanwhile, NPLs showed a positive influence on MSME credit disbursement, although not significant in the initial period (2015–2017). In the 2018–2022 period, the influence of NPLs became positive and significant, indicating an increase in credit disbursement in line with the improvement in the quality of financing in the MSME sector.
