sanjau.com – Hello friends, I’m back again with this kind admin. At this meeting the admin will discuss about Know the Types of Consumption Loans and Business Loans.
We know that credit refers to loans given by banks or other financial institutions. But did you know that credit is different?
In general, “credit” is widely known as a loan from a bank or similar financial institution to be repaid together with interest within a certain period of time.
But, did you know that there are different types of credit? Based on their use, there are types of consumer loans and business loans.
Each has different characteristics in terms of the conditions required for its distribution.
Consumer credit is a loan extended to individuals. Therefore, the eligibility of each customer to get a loan will be carefully considered by the bank.
This includes conducting “BI checking” on historical individual debtor information (IDI) data at the Credit Information Bureau of Bank Indonesia. This consumption credit is generally recognized in the form of Home Ownership Loans (KPR) and non-KPR.
1. Home Ownership Loans (KPR)
KPR is arguably the most popular credit product besides motorcycle loans and credit cards. KPR allows people to have a place to live even if they don’t have enough funds to buy a house or apartment in cash.
Calculation of monthly mortgage installments can use flat, effective, and annuity calculation models. In addition, monthly mortgage installments can also be calculated easily and simply through a mortgage calculator.
Meanwhile, the term of mortgage installments usually ranges from 10-20 years with monthly installments automatically from the account (auto debit) or manually.
The long-term and functional homes that can double as investment properties make mortgages very popular.
In addition, mortgages on certain housing receive government subsidies, thereby making public interest in mortgages quite high.
2. Non-mortgage loans
Non-mortgage loans are loans disbursed to individuals for the purchase of consumer goods other than homes.
Included in this category are motorcycle loans, gadget purchases loans, and so on. In contrast to very long term mortgages, non-mortgage loan terms are generally short, ranging from just a few months to about 2 years.
However, the terms of non-mortgage consumer loans are relatively easier than mortgage loans and business loans.
Credit applications and approvals may only take a few days. Loan interest can be fixed or floating, with a pre-determined plan for advances and monthly installments.
In addition to mortgage and non-mortgage loans, consumer loans are also available in the form of credit cards and unsecured loans (KTA).
KTA loans and credit cards are provided by banks in the form of funds with a maximum limit (ceiling) and a certain interest, and customers are free to use up to the maximum or in part, also use them for any purposes, both consumptive and productive. Approval for credit card da
If a consumer loan is a loan for an individual which is usually intended for the purchase of consumptive goods or services, then a business loan targets a particular company or business, where the entrepreneur or entrepreneur needs fresh funds to develop a business (expansion) or company operations.
Based on the use of loan funds, this business credit can be in the form of working capital loans or investment loans.
Working capital loans are intended to increase production in business operations, while investment loans are more directed at the procurement of long-term capital goods for expansion.
Business loans are more diverse than consumer loans in terms of loan size and installment length. The loan amount can be as small as 5 million Rupiah, with the maximum amount depending on the ability of each bank.
Usually, customers apply for credit according to the scale of their business, and then the bank will determine whether to enter the micro, retail, or corporate class.
Microcredit is generally taken by those who need small capital such as farmers and market traders. Retail loans are a level above microcredit, and are generally taken by MSME entrepreneurs.
Meanwhile, corporate loans are intended for large-scale companies. Interest for each group differs depending on the bank’s policy, as well as on the terms of the collateral required as guarantor of the loan.
In assessing the feasibility of a company to obtain a business loan, the bank will examine the condition of the company and its operations, including its prospects. Again, this depends on the bank’s policy.
The consideration of each bank in providing credit will depend on an assessment that will be difficult to predict by outsiders.
However, if a business has received credit from a bank and is able to pay the installments smoothly, then the chances of getting credit again in the future are quite high.
On the other hand, companies with problems will naturally find it difficult to find a bank that is willing to provide loans.
If there are difficulties in paying installments on business loans such as bad loans or bad loans, negotiations can be carried out for rescheduling debt payments or debt restructuring.
The last alternative that can be taken is the liquidation of the company’s assets to pay its obligations, including this business loan.
What needs to be noted here is that every customer who borrows funds from a bank may not use the loan funds for something other than the initial interest.
Using funds from business loans to buy consumer goods or meet impromptu personal needs has the potential to make it difficult for you to pay installments in the future.
Many people have experienced this, especially farmers and traders, where loan funds for businesses are even used for other, sometimes less urgent, purposes.
Holding large sums of money poses a strong temptation, but if you manage to refrain from using the funds for their intended purpose, then the fruit will be sweeter in the future.
That’s the information that admin can convey about Know the Types of Consumption Loans and Business Loans. Hopefully this information can be useful for you.