Climate Risk Issue on Credit Loans Decisions to Rural Society

Abstract

Building a sustainable economy for rural areas must be based on good public literacy of the surrounding natural conditions. Therefore, it needs to formulate recommendations for lending decisions so that the economic resilience of rural communities remains good when natural disasters occur due to climate change. This study uses descriptive analysis, a decision tree model, and interviews as a basis for analyzing to get the right decisions for financial service providers in providing credit loans to certain economic sectors in West Java rural communities. The novelty of this research is able to explain the disaster risk index in the village which can be taken into consideration in the process of making credit decisions by financial service providers. Therefore, the value of credit restructuring due to natural disasters can be minimized and not become a loss so that it does not become an obstacle to the economic resilience of rural communities.