Rate Of Interest, Payment Period, Collectability And Their Impact On Non Performing Loan

Abstract

This study aims to determine: 1) the influence of interest rate on non-performing
loan, 2) the influence of payment period on non-performing loan, 3)the influence of
collectability on non-performing loan,, 4) the influence of interest rate on collectability, 5)
the influence of payment period on collectability, 6) indirect effects of interest rate on nonperforming
loan through collectability, 7) indirect effects of payment periodon nonperforming
loan through collectability,8)simultaneous effects of interest rate, payment
period, collectability on non-performing loan. This research was conductedat PT
Pegadaian Branch Denpasar using 76 respondents who are employees and officials under
investigation related to the type of credit. Sources of data used are primary and secondary
data. Variabels used are interest rate and payment period as independent variable,
collectability as intervening variable, and dependent variable is non-performing loan.
Data collection technique using questionnaires,while the data analysis method use darere
search instruments includevalidity-reliability test, assesment of normality, outliers test,
multicolinearity-singularity test and goodness of fit index; Hypothesis testing method
include path analysis, multiple square correlation (R2) as well as direct and indirect effect
among variable. The results showed that: 1) rate of interest has positive and significant
influence on non-performing loan, 2) payment period has positive and significant
influence on non- performing loan, 3) collectability significantly negative on effect
towards non-performing loan, 4) rate of interest significantly negative on effect towards
collectability, 5) payment period significantly negative on effect towards collectability, 6)
there are indirect effects of interest rate on non-performing loan through collectability 7)
there are indirect effects of payment period on non-performing loan through collectability,
8) All variables have significant simultaneous effects on non-performingloan.

Keywords : rate of interest, payment period, collectability, non performing loan