Descriptive Analysis of the Benefits and Problems of Using Online Loans for MSMEs

Zulfanetti Zulfanetti (), R. M. Rachmad, Mukhzarudfa and Jurnia Minati
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Zulfanetti Zulfanetti: Universitas Jambi
R. M. Rachmad: Universitas Jambi
Mukhzarudfa: Universitas Jambi
Jurnia Minati: Universitas Jambi

A chapter in Proceedings of the 4th International Conference on Economic, Business, and Accounting Studies (ICEBAST 2025), 2025, pp 232-239 from Springer

Abstract: Abstract This study aims to: (1) Describe MSME actors who take out online loans; (2) Identify the forms of online loan utilisation by MSME actors and analyse the benefits and problems arising from this. This study uses a survey method to collect primary data. Data was collected using questionnaires and in-depth interviews. The population of this study consisted of MSME actors in various business fields spread across Jambi Province who had taken out online loans, using the snowball sampling technique. This study used descriptive and quantitative statistical methods. Online loan users are predominantly female, aged 37 years old, with a high school education, married, engaged in trading, and the average online loan is used as business capital and to meet daily family needs. Online loans have become a problem for MSMEs, as many MSMEs take out repeated loans to cover previous loans, and this cycle clearly creates a dependency on continuing to take out online loans, which is not a form of financial independence. The novelty of this research: (1). Classifying MSMEs that have the potential to benefit from online loans and those that are at risk of being negatively affected, so that the results are more focused and applicable. (2). In addition to using a rational-economic approach, this study also explores the psychological and emotional factors of decision making. (3). Through qualitative methods, the perceptions and experiences of users are obtained authentically. (4). There has been little research examining the simultaneous impact of online lending on business success and exploring the negative impacts of online lending that cause major problems for MSME businesses and families.

Keywords: Fintech; Online lending; MSMEs; Impact (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-956-8_18

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