Analysis of the Determination of MSME Credit Decisions: A Study of Customers of the South Kalimantan Regional Development Bank

Small and Medium Enterprises (SMEs) play a vital role as the backbone of the national economy, driving economic growth, employment, and poverty reduction. The purpose of this study is to examine the factors influencing MSME credit decisions by MSME entrepreneurs. The factors suspected of influencing MSME credit decisions are Service Quality, Promotion, Financial Literacy, Credit Schemes, Interest Rates, and References from Close People. The research method used a quantitative approach with a survey of 160 MSMEs who are active customers of Bank Kalsel in South Kalimantan. Data were analyzed using Multiple Linear Regression. The results show that the variables Financial Literacy, MSME Credit Schemes, and Credit Interest Rates have a significant and positive effect. Conversely, Service Quality and Promotion have a significant but negative effect, while References from Close People have a negative and insignificant effect.