Perpustakaan Digital ITB

ABSTRACT: Poverty is one of the problems that are being faced by the world today. The main issue is that the poor people do not have access to capital. Microfinance is one alternatives offer by the world to reduce poverty because conventional financial institution could not solve this problem. Now many organizations are applying microfinance through out the world including Indonesia. The types are varying from formal bank, formal institution non bank and NGO. However each Institution offers different model and scheme of microfinance. What is the difference scheme between each institution. There are two types of scheme/model that the sample institution used which are individual and group model. These models consist of different philosophy, target, scheme (internal process) and result. From this sample we can conclude that all of these institutions have the same intention that is to help and develop their community in their own ways. The target and model used need to be aligning each other with the institutions goals. The success of microfinance programs is determined by the proper match among target, model, and institutions goals. Group model is better than individual model because it is less risky and overall gives the best support to accomplish microfinance objective. Microfinance institution should have strict policy by not easily tolerate any NPL from the member. MFI need to be also strict with all process in the scheme especially monitoring. From MFI result it conclude that collateral are not very significant in guaranteeing low rate of Non Performing Loans. After this research it is suggested that another research conducted with broaden sample scope, number of sample and time horizon. It is good that the research also comparing with international finding/research.