Lately, the term Unsecured Loans is very often heard. But did you know what Unsecured Loans are? In general, Unsecured Loans, known as unsecured loans, are unsecured personal loans from banks to prospective debtors.
Currently, almost all banks in Indonesia provide Unsecured Loans facilities to their customers. However, the bank that first provided this facility was Fine Bank, which was eventually followed by other banks in Indonesia. Generally, customers who use this facility are those who need fast funds, for example, to pay off a down payment on a house, venture capital, college entrance fees, wedding costs and so forth.
Even though they are unsecured loans, there are conditions that must be met by prospective applicants. For example, you have to bring a savings account book when registering because the banks can see your ability to repay the loan. So, for those of you who are in shambles managing finances or even barely leaving sufficient funds in your account after payday, it is certain that your Unsecured Loans application is rejected.
Now, before you know how to get Unsecured Loans, it’s better to know the pluses and minuses of this product.
Advantages of Unsecured Loans
There are several advantages of Unsecured Loans that make us want to use it, here it is:
- The process of getting an Unsecured Loans is quick and easy. Funds can be disbursed in less than a week. To be sure, no need to guarantee to the bank.
- The required documents are few because they do not need documents or data for collateral.
- Payment can be made in installments in accordance with the agreement between the applicant candidate and the bank.
- Payment of credit installments is very easy because it can be done through an ATM machine. Because a number of banks provide auto debit schemes, which require debtors to have an account at a lending bank.
- The loan interest is fixed (flat) from the beginning to the end of the loan repayment. While loans with collateral, interest rates fluctuate following the Bank Indonesia (BI) benchmark interest rate.
- Unsecured Loans can be used according to your purpose, both productive and consumptive because you are the one who regulates its use.
- Not only banks provide Unsecured Loans, but financial institutions also offer this product, making it even easier to find it.
Lack of Unsecured Loans
Besides its advantages, Unsecured Loans basically also has a number of disadvantages:
- This credit does not provide an opportunity for you to get a loan in large amounts. Usually, the amount of a loan is limited to a maximum of five times the base salary, even though there are those above.
- The bank will immediately debit the balance in your savings as an installment.
- The number of loans is limited and relatively small, with short-term loan tenors, between three to five years, adjusted for the size of the loan.
- You must be an employee or employee or professional or entrepreneur with a fixed income every month.
- Because this product is considered quite risky, you must create an account at the lender’s bank and require the debtor to channel his salary at the bank.
- Because without collateral, Unsecured Loans interest rates are higher than other types of credit, depending on the lending bank.
- If you pay off the loan before it’s due, you will be charged a penalty of around 5%.
Requirements and Process of Getting an Unsecured Loans
Well, for those of you who are interested in this loan product, you must:
- Indonesian citizen (WNI) and domiciled in the country.
- Minimum age 21 years and maximum of 55 years.
- Have a job or a regular income each month, a minimum of USD 2.5 million.
To apply for Unsecured Loans, you can directly come to the bank concerned or via online because now many banks provide online facilities via the internet.
When applying for an Unsecured Loans, there are a number of administrative requirements, such as a photocopy of KTP, family card, NPWP, savings account for the past three months, original employment certificate and salary slip, professional practice permit for professionals / financial statements for companies or entrepreneurs.
Oh yes, good news for those of you who have a credit card because it will be easier to get an Unsecured Loans. Loh really? Yup The reason is, banks can easily see the ability and credit history of customers. If your credit record is good, then surely the bank will prioritize loan approval.