Cash Loans Up to Hundreds of Millions: Read the OJK Rules First
New OJK cash loan rules let finance and leasing companies offer a 0% down payment. Read what collateral you need before you apply for a big cash loan.
Indonesia's Financial Services Authority (Otoritas Jasa Keuangan, or OJK) has released a new policy on cash loans, aimed at all finance and leasing companies across the country. Under it, any finance company may offer a 0% down payment (DP) on certain conditions.
The 0% DP covers all vehicle credit, home financing and cash loans. In short, OJK Regulation No. 35/POJK.05/2018 on the Conduct of Financing Company Business allows every financing institution to give consumers both capital facilities and cash facilities.
A few points should be noted. Business capital facilities are provided only by finance companies or financing institutions (leasing) for the purchase of goods or services, and the applicant must state the purpose of the purchase and attach proof of payment.
Unlike a cash loan, the funding facility in question is financing from a leasing company to buy services, goods or consumer products.
So can you apply for a loan of up to Rp 500 million through a finance company? Yes, but it cannot be classed as an unsecured loan (Kredit Tanpa Agunan, or KTA). The application must still include collateral in the form of land, a motor vehicle or heavy equipment.
Besides land documents, a BPKB (the motor vehicle ownership book) or a collateral certificate, an application can also use an SK. An SK, short for Surat Keterangan, is an official statement usually issued to people who work in government agencies or private companies. A teacher's SK is one example.
An SK can serve as security when applying for a loan from a finance company or bank. In general, SKs are widely issued by the government to civil servants (PNS). However, every bank and finance institution sets its own policy, and some do not accept an SK as loan collateral.
The purpose of using an SK is to give assurance that the borrower (debtor) has a steady income and pension savings, so the loan can be disbursed.
Business assets can also be used as security for a cash loan. Anyone who runs an industrial operation almost certainly owns valuable assets, such as factory machinery. These can be valuable capital when looking for a loan. Even so, the bank or leasing company will still survey whether the assets are suitable as collateral.
Also read Cash Loan Requirements for Individuals and Businesses
