Buying a house and a vehicle requires large capital; this is why financial institutions offer consumer interest loan packages. Consumptive product lending is a term for loan / credit services for individuals who want to buy consumer goods in the form of houses and motor vehicles. Known as Home Loans (KPR) and Non-KPR Loans, both are usually offered by various banks in Indonesia, both national and international banks.
Some banks in Indonesia may only offer one type of credit, or offer the same percentage of loan interest between a KPR and a Non-KPR. Therefore, it is very important for you to know the ins and outs of consumption credit before deciding to borrow.
Ins and Outs of Loans and Mortgage Interest
KPR is a type of consumer credit offered to individuals who meet certain requirements, namely:
- Buy a house that already has a building permit and a broken lot certificate, and an account at the bank where the individual applied for a mortgage. For used houses, there must be a building permit and HGB certificate.
- Meet the minimum and maximum age requirements for credit applications. Usually, a minimum of 21 years and a maximum of 55 years, or already married.
- All certificates, certificates and credit application letters must be valid and valid, and their validity has been tested.
- The borrower (debtor) must sign various letters such as the Deed of Granting Mortgage, credit agreement, and other related agreements.
- The borrower must provide credit application documents according to his capacity. Individuals must provide a photocopy of their husband’s or wife’s KTP and KTP, a photocopy of a family card, a photocopy of a valid NPWP, a photocopy of a pay slip, and a photocopy of a current or savings account for the last 3 months. If the businessman has to submit a photocopy of SIUP, TDP, and financial statements, and if professionals, must provide a photocopy of a practice permit.
Mortgage interest rates in Indonesia vary between 8 to 18 percent, but the most commonly offered by various banks is between 11 and 13 percent.
Ins and Outs of Loans and Non KPR Interest
Non-mortgage loans are used to buy new motor vehicles, with the following general requirements:
- The borrower must have an account at the bank where the credit is applied.
- Guarantees for vehicles must have a legal attachment that was passed by a notary.
- Customers who submit credit requests must have all the letters and documents related to the vehicle, and all of them must be valid and validated.
- The party applying for the credit must be willing to sign the loan documents, such as acceptance letters, blank receipts, debt acknowledgment letters, etc. according to the provisions.
- The borrower must fulfill the minimum deposit requirement in his account during the non-mortgage loan repayment period.
- Provide various documents needed according to their capacity. For private borrowers, the documents prepared are the same as above, but a photocopy of the APB, PBB, and certificates or other vehicle documents is added. For individual borrowers must include a photocopy of the vehicle order letter.
Non-mortgage interest rates offered by various banks can be between 9 to 17 percent, but in general, the average non-mortgage interest rates offered are between 11 and 13 percent. Mortgage interest rates and non-mortgage loans can be the same or different between banks.
Payment and Repayment of Consumer Loans and Interest
To pay off consumer credit loans, both mortgages and non-mortgages, borrowers can use two kinds of options: fixed principal installments where the amount of installments can be changed every month, or fixed installments where the repayment amount is set each month. The amount of the installment paid also depends on the current interest rate. Therefore, it is very important to follow trends and news related to lending rates in Indonesia, because the amount of your next installment may be influenced by the trend.
If you want to be able to calculate how much you have to spend on credit installments, you can use KP and non-mortgage calculators that can be used to determine how much should be spent each month for installments. Each bank’s official website usually provides a consumer credit calculator, according to the consumer loan product interest prevailing at the time.