Borrower's attitude towards business loan repayment: a study at Pejabat Mara Daerah (PMD) Jeli, Kelantan / Norshahira Zawawi

Financial loan activity whether loans for business, education or personal are already part of today's community culture. However, in helping the community and entrepreneurs, the government has established the institution MARA that provided loan including a business loan for the Bumiputera in getting the financial assistant and to get out of poverty. Basically, an aspect of borrowing relates to the default problem even they are many ways to repay it. Also, the attitude of the borrower is an important factor whether the borrower willingness to repay or ability to repay. However, defaulting is a problem increasing especially towards loan repayment even MARA has prepared the facilities to the borrowers. Hence, this study explains the factors of failure to repayment, attitude to repay and suggestion in improving attitude towards loans repayment. Due to this defaulting and unethical behavior, the financial institution' as MARA stem from outright default due to the inability of borrowers to meet obligations in relation settlement. This study analyses by using the mix methods which is qualitative and quantitative. Qualitative method is interview while the quantitative method is set of questionnaire. Hence, data were gathered through distributed 103 of questionnaires, but only 85 of the questionnaire was returned while interviews 6 of respondents consists of MARA officer and borrowers MARA then the data was analyzed using both frequency and descriptive. The findings will assist the MARA district office Jeli and also borrowers in coming up with the most appropriate measures to apply in order to improve the loan repayment and eliminate defaults. Therefore, default happens because of borrowers' attitude itself, this will lead to the delinquency and then the borrower cannot afford to pay. At the same time, the debt will affect the government, financial institutions and especially to the borrower itself. However, the borrowers who do not pay debts will not miss their punishment from Allah SWT.