The Effect of Financial Literacy on Loan Repayment Performance of MSMEs: A Literature Review

Agus Supriyadi; Muhammad Saifi; Maria Goretti Wi Endang NP

Article Details

The Effect of Financial Literacy on Loan Repayment Performance of MSMEs: A Literature Review

Authors:

Agus Supriyadi | Muhammad Saifi | Maria Goretti Wi Endang NP

Publisher:

KnE Social Sciences

Journal:

KnE Social Sciences Vol.9 Issue 11, pp.228-246

Document Type:

Article

Publication Date:

5/2024

Document Language:

English

Document ID (Org No.):

2001512933

pISSN:

2518-668X

Keywords:

Abstract:

 Credit loans among MSMEs are beneficial for business sustainability. The quality of a credit loan is a concern to avoid default, so the topic of loan repayment performance is interesting to explore. This study summarizes and analyzes several previous studies related to the topic of the influence of financial literacy on business performance among MSMEs, as well as the influence of financial literacy on loan repayment performance. Based on a literature study conducted, financial literacy was found to have a significant influence on business performance and loan repayment performance among MSMEs. This study found gaps in previous research, there are still limited studies that provide a comprehensive framework explaining how financial literacy influences loan repayment performance directly or through business performance variables. Therefore, it is important to research further, how an MSME manager who accesses credit to run his business can achieve optimal business performance, where the results will be used for loan repayment. This research proposes business performance as a mediating variable that could be considered in future research.

Article Details

The Effect of Financial Literacy on Loan Repayment Performance of MSMEs: A Literature Review

Authors: Agus Supriyadi | Muhammad Saifi | Maria Goretti Wi Endang NP

Publisher: KnE Social Sciences

Journal: KnE Social Sciences Vol.9 Issue 11, pp.228-246

Document Type: Article

Publication Date: 5/2024

Document Language: English

Document ID (Org No.): 2001512933

pISSN: 2518-668X

financial literacy

business performance

loan repayment performance

Issues

Authors:

Agus Supriyadi | Muhammad Saifi | Maria Goretti Wi Endang NP

Publisher:

KnE Social Sciences

Journal:

KnE Social Sciences Vol.9 Issue 11, pp.228-246

Document Type:

Article

Publication Date:

5/2024

Document Language:

English

Document ID (Org No.):

2001512933

pISSN:

2518-668X