Guidelines for Reducing Delays in Loan Approval of the Government Housing Bank, Metropolitan Branch Group

Abstract

This research aimed to: 1) examine factors contributing to delays in loan approvals and 2) develop and propose strategies to reduce the loan approval time within the Metropolitan Business Division. A mixed-methods approach was employed. The sample consisted of employees, senior staff, assistant managers, and department heads from the Government Housing Bank's Metropolitan Business Division. The quantitative phase included 157 participants, while the qualitative phase involved 15 participants selected through purposive sampling. Quantitative data were collected using structured questionnaires and analyzed using descriptive statistics, including frequency, percentage, mean, and standard deviation. Qualitative data were obtained through in-depth interviews and analyzed using thematic analysis.

The findings revealed that external factors significantly contributed to delays in loan approvals, with competitor analysis being the most critical factor, followed by customer analysis. For internal factors, improving management efficiency ranked highest, followed by customer relationship management and time management.

In-depth interviews highlighted key challenges in the loan approval process, particularly delays caused by incomplete income documentation submitted by customers. Ambiguities in loan approval guidelines, inconsistent conditions, and unstandardized processes led to misinterpretations among loan approvers. Additionally, redundant operational steps further contributed to time inefficiencies. The proposed solutions include enhancing employees’ knowledge and understanding of loan approval criteria and streamlining the process to ensure consistency and reduce redundancy, ultimately improving the efficiency of loan approvals.