The presence of Credit Unions and other MFIs, was established specifically to provide business development services and community empowerment to be able to combat their loan sharks (Bank titil). 

Loan shark preying on the desperation of the poor by charging exorbitant interest rates and employing unsavory collection methods, the traditional moneylender provides a valuable service for poor people who require quick and flexible infusions of cash to meet immediate and pressing consumption needs or to cope with emergencies. 

Like savings, consumption/emergency loans form an integral component of poor households’ risk management and coping strategies (Brau and Woller, 2004). 

All these years, many small communities obtain capital from loan shark more than financial institutions that have legal entities because it is easier to obtain a loan without any collateral, despite the higher interest rates. This is caused by their needs for money to start a small business, the capital they need was also less than ten million rupiahs. 

To combat this, the MFIs as institutions can facilitate the development of microfinance for SMEs. For these micro and small businesses, going to a bank or other financial institutions is not an option because there many requirements and collateral and also for them going to a formal institutions is never easy. 

The point is there are many SMEs that are not bankable. So what they do is, they go to a loan shark that provides them an easy service, no paper needed, no collateral needed but these loan sharks charge a very high interest rate and at the end it will reduce the capability of the SMEs to survive.