Sidoarjo regency is known as the area of micro business unit and creative industry followed by the development of conventional BPR in Sidoarjo. Responsible BPRs have excellent competitive strategies. This study aims to (1) find out the competitive strategy of rural banks in reducing bad loans through AYDA, (2) to identify constraints on the implementation of AYDA. This research uses mix methode approach. A quantitative approach to test large AYDA against a decrease in non-performing loans by using nominative credit report ratios data. The interpretive qualitative approach identifies the strategies and constraints on the implementation of AYDA. Key informants are Managing Director, Remidial, Credit Admin and Client. Data collection techniques use primary, secondary, in depth Interview and Focus Group Discussion (FGD) data. Data analysis techniques use data collection, reduction, display and conclusion. The result of BPR's competitive strategy is to make regular visits and explain to the debtor or guarantor as well as the right of inheritance regarding the loan to be repaid, giving the repayment discount in terms of interest discount and fine. The productive-earning assets to the loans granted by 0.95% and the settlement interest income of 92.34% can reduce the non-performing loans of total loans granted by 39,867,775. Constraints implementation of AYDA is the missing debtor / run away, the cost of AYDA is great, the debtor is not cooperative, the guarantee does not belong to the debtor alone and died.