Legal Protection for Creditors of Bank Nagari Siteba Branch Regarding the Provision of People's Business Credit (KUR) Who Do Not Have Credit Collateral in the Padang City Area

Abstract

This study aims to analyze: 1) To determine and analyze the credit granting procedure at Bank Nagari, Siteba Branch, Padang City. 2) To determine the legal protection for creditors in the event of bad debt. The approach method used in this study is an empirical approach. An approach that focuses on field research by going directly to the object or field, so as to gain a deep understanding of People's Business Credit, and the problems faced in reality. The results of the research and discussion, after conducting research on creditor protection for debtors who experience bad debts on People's Business Credit financing, in carrying out the initial procedures before granting credit, have been carried out well, namely by applying the principle of prudence in providing credit. Bank Nagari, Siteba Branch, Padang City has done it in accordance with the regulations, with the aim of minimizing the risk of bad debts that are important and supporting economic stability and national development. The study found that legal protection for creditors for debtors who experience payment difficulties, in this case the most fatal to the point where their whereabouts cannot be found, can make a People's Business Credit insurance claim, with the aim of reducing losses for Bank Nagari, Siteba Branch, Padang City.