What are loans? what are the benefits and risks?

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Loans are divided into short-term, medium-term and long-term loans, for the short term they are used more for working capital loans and long-term loans are mostly used for investment loans.



Types of products :


Credit Overdraft. Is a debit balance loan in your account, this loan will automatically cover the deficiency in your account balance. This loan is provided with a maximum term of 1 (one) year.

Rupiah credit. Is a credit facility provided in rupiah currency.

Forex Credit. Is a credit facility provided in foreign currency.

Rupiah Credit or Export Foreign Currency. Is a credit facility provided for export activities.

A. Benefits and Risks


Benefits

    As a facility to increase capital and develop customer business activities.
    As a facility to maintain the customer's financial condition.
    As capital for customer business expansion.
    As a tool to maintain customer liquidity.

Risk

1. Credit Risk

There is a risk of the third party's inability to pay off its obligations.

2. Market Risk

There are fluctuations in interest rates and exchange rates that occur.

3. Operational risk

Internal process malfunction, human error, system process failure or external problem.

4. Legal Risk

Weaknesses of the juridical aspects of contract engagement.

5. Risk for Customers

Floating interest rates / interest rates are not set and fluctuate according to market interest.

B. Terms and Procedures for Using Bank Facilities and Products


The requirements for getting a credit facility are:

Become our customer first.

Apply for a loan by attaching:

    Company Establishment Deed and Amendments
    Articles of Association and Amendments
    Company profile
    Copy of Identity of Company Management
    Tax ID number
    Certificate of Company Registration.
    Business Registration Certificate.
    Audit Financial Report for the last 3 (three) years.

C. Costs


Provision. Is a fee charged on the loan facility. The amount of the provision fee charged is determined by negotiation.

Provision Calculation

Provision = Facility Value x Provision x Term / 12 months

The amount of the provision is determined at the time of obtaining the loan facility and its extension.

D. Interest Calculation


Flower. The loan interest is calculated daily from the amount of facility usage.

Interest Calculation

       Interest = Usage x Interest Rate x Period / 360 days

The loan interest rate varies according to market conditions.

E. Duration


Short Term Credit. Is a loan with a payment term of less than one year.
Medium Term Credit. Are loans with payment terms of more than one year and less than three years.
Long Term Credit. Is a loan with a payment term of more than three years.

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