EFFECTIVENESS OF FINANCING IN SUPPORTING MSME DEVELOPMENT AT PT PEGADAIAN UPS KWANYAR

Introduction: The Sharia People's Business Credit (KUR) program at PT Pegadaian UPS Kwanyar aims to support MSME capital in Bangkalan City by providing alternative financial solutions. However, the implementation of KUR Syariah faces several challenges that need to be overcome to increase its utilization. Research Methods: This research uses a descriptive case study approach to describe the efficiency and challenges of KUR Syariah at PT Pegadaian UPS Kwanyar. Data was collected through direct observation and interviews with the company and the MSME players involved. The data was then analyzed qualitatively using descriptive analysis. Results: The results reveal that the KUR Syariah program at PT Pegadaian UPS Kwanyar is effective in supporting MSME capital by implementing strict procedures such timeliness, accuracy of amount, accuracy of target, and accuracy of credit. MSMEs that use KUR Syariah report increased income and productivity, although they still face challenges such product limitations, low user interest, a complicated application process, and a lack of direct promotion. Conclusion: Improvements in the application process and promotion are needed to increase the utilization of KUR Syariah by MSMEs in Bangkalan City.