Types of Cash Loans in Indonesia: Unsecured and Secured
Learn the types of cash loans in Indonesia and how unsecured loans (KTA) and collateral-backed loans differ in requirements, speed and lenders.
Rising needs mean people need more money. Savings are running thin, yet an urgent expense still has to be paid. A cash loan can be the answer to the money problem you are facing.
A cash loan is seen as a solution because the funds can be used right away, since they are paid out in cash. If your application is approved, the money is transferred straight to your savings account, or you can collect it at the lender's office.
Cash loans come in many forms, and there are clear differences between one and the next. The differences depend on what the borrower needs the money for, and they also lie in the requirements. The requirements for borrowing a large sum are naturally different from those for a small loan.
That is why it helps to know what types of cash loans exist in Indonesia. Here is the full rundown.
Unsecured Cash Loans
An unsecured loan, or Kredit Tanpa Agunan (KTA), is a loan that a bank can give a customer quickly. As the name suggests, this type of loan requires no collateral or guarantee when you apply, so you do not have to scramble to find an asset to pledge. With no collateral involved, the process does not take long. On average, it takes 1 to 14 business days for the funds to be disbursed, depending on the amount requested. If the amount is small and your documents are complete, the money can be released quickly.
You can get an unsecured loan from a bank, because only banks offer this type of loan. The application requirements are fairly extensive, including a KTP (national ID card), an NPWP (taxpayer identification number), a salary slip, bank statements for the last 3 months, and a credit card that has been active for at least 1 year.
Secured Cash Loans
Unlike the previous type, a secured loan requires you to provide collateral or a guarantee when you apply. The collateral can be a house or building certificate, a land certificate, or a BPKB (vehicle ownership book).
It is not only banks that can offer loans against collateral. Non-bank financial institutions, leasing companies and even pawnshops can too. If you plan to apply for this kind of loan, you must pledge one of your assets to the lender.
Read also: Want to Apply for a Cash Loan of Hundreds of Millions of Rupiah? Read the Rules First
The process itself takes longer than for an unsecured loan because of an appraisal, in which the bank or lender values the asset you are pledging before it hands over the money.
Whichever type of loan you choose, always weigh your decision carefully and run the numbers in a simulation first, so you do not regret it later and can pay the installments until the loan is fully repaid.
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