Recommendation for giving loans using the Multi Objective Optimization method based on Ratio Analysis

Abstract

Abstract Mekar Harapan Farmers’ Cooperative, a cooperative which was dealing with savings and loans. This cooperative has a constraint in lending operations, namely the provision of lending recommendations in accordance with the rules that are less effective and efficient in determining the feasibility decisions for a large number of loan applications so that they are less selective in making decisions. To assist cooperative management in determining the eligibility of loans by providing a fair, objective and transparent assessment, a system of recommendations is needed that can help the selection process in accordance with predetermined criteria. The methodology used in this system is the method of Multi Objective Optimization on The Base of Ratio Analysis (MOORA) because this method has a good level of selectivity in determining an alternative. This system will be used as a medium of evaluation by the MOORA method of several loan applications that have been registered in the system conducted by members and managed by officers, then approval by supervisors. With this Loan Recommendation, it is expected to make it easier for officers in the selection process to determine the eligibility of a loan so that the results of the assessment can be known easily, quickly, and accurately.