Increasing Efficiency and Transparency of Soft Loans for SME Businesses with Blockchain Technology

SMEs as one of the pillars of the economy have several limitations and financial limitations are the biggest obstacle to the development of SMEs. As an effort to improve the performance of SMEs, the government provides soft loans to make it easier for SMEs to get financial assistance. Problems arise when SMEs cannot guarantee the use of soft loans for business development needs but for other purposes that are not in accordance with the agreement with soft lenders. Thus, a mechanism is needed to ensure that soft loans are used in accordance with the designation specified in the agreement. Block chain is a technology that has the ability to create transactions with high transparency and security. This research aims to facilitate the process of providing soft loans for SMEs. The research method uses a qualitative approach through literature review to identify problems and alternative solutions. The result of this research is a blockchain model for improving the efficiency of soft loans for SMEs