Low-interest loans are something that many prospective debtors look for when applying for a loan for any purpose. With a low-interest rate, it will determine the number of installments or installments paid. Every Financial Institution is competing to offer competitive interest rates. As a prospective debtor, of course, you must carefully look at the terms offered, and whether they are in accordance with the benefits obtained. Of course, the interest rates offered will also be different for each financing product. Well, on this occasion the BFI Finance team would like to give you an understanding of the different types of low-interest loans available and tips on choosing them. Come on!
3 Types of Low-Interest Loans
1. KTA / Unsecured Loans
The first low-interest loan is Unsecured Loan or commonly known as KTA. Maybe you are already familiar with this term? True, KTA is an unsecured loan product that is generally offered by banks. KTA loans can be used to fund children's education, home renovation, opening a business, and others. Disbursement of KTA funds generally takes 3 to 5 days depending on bank policy and the completeness of the required documents for prospective debtors.
Like banks, financing companies such as BFI Finance also have similar loan products that do not require collateral. Currently, BFI Finance has unsecured financing called BFI SELFI or Seller Financing. As the name implies, BFI Seller Financing aims to meet the business capital needs of MSME actors. Prospective debtors can apply for financing of up to IDR 25,000,000. You can find out more information about BFI SELF through the following link.
2. Guaranteed Loans
As the name implies, if you apply for financing through this method, you need to need a guarantee as one of the requirements. The form of guarantee can be in the form of BPKB for Cars, Motorcycles, or House Certificates. Generally, the interest rates offered on secured loans are lower than on unsecured loans. One of the reasons is the risk posed by unsecured loans, which are higher than secured loans.
In addition, the advantage of this secured loan is that it offers a longer tenor. You can get a long tenor through a loan with a home certificate guarantee. The tenor offered is from 1 to 7 years.
You can find all these benefits through BFI Finance's multipurpose financing product! Currently, BFI Finance has more than 300 branches and outlets spread throughout Indonesia. In addition, along with the development of the digital world, prospective debtors can also apply for financing online which can be accessed through the main BFI Finance website. Therefore, you don't need to feel any more difficulty in meeting your needs through loans guaranteed by BFI Finance!
3. Online Loans
Along with the development of technology, it also affects access to loan funds through online media and applications. Online loans or commonly called Pinjols began to spread in Indonesia in 2016. Based on data from the OJK as of October 6, 2021, the number of online loan entities that have been registered and licensed by the OJK in Indonesia is 106. During the business process, online loans have made transactions of Rp. 249,928 Trillion. The numbers are quite fantastic and the presence of online loans has certainly helped the wheels of the Indonesian economy. But beyond that, you need to be more careful because there are also illegal online loans. Instead of being helped, debtors who are ensnared by these illegal online loans will actually be burdened by new problems. The characteristics of illegal online loans are generally set high-interest rates, large fees, unlimited fines, and terrorize or intimidating debtors.
Before you decide to apply for a loan through an online loan, you need to review the track record of the entity. And what is certain, apply for an online loan through an entity that has been registered and has received official permission from the OJK.
Tips for Choosing a Low-Interest Loan
After you know the types of low-interest loans, here are some tips for choosing a low-interest loan:
1. Determine the Loan Amount and Collateral
The first step in determining a low-interest loan is to determine the loan amount according to your needs. The size of the loan is also determined by the ability to pay your installments per month. If you decide to use collateral in making a loan, then determine the guarantee that can cover your funding needs. Generally, the ceiling given to prospective debtors if they apply for a loan guaranteed by BPKB Motor ranges from Rp. 1,000,000. In another case, if you apply for a loan with a BPKB Mobil guarantee, the financing limit provided starts from Rp. 10,000,000.
If you decide to use the Online Loan platform, you have the opportunity to get a disbursement of funds starting from Rp. 500,000. This amount is certainly different from one online loan entity to another.
2. Determine Your Loan Tenor
Next, you can determine the tenor or term of your loan. Indeed, the longer the tenor, the smaller the installment amount. However, it should be noted that the length of the tenor also determines the interest rate given to prospective debtors. The longer the tenor, the higher the interest rate charged. On the other hand, the shorter the tenor you choose, the lower the interest rate you will get.
Usually, for loans guaranteed by BPKB Motor, prospective debtors will get a tenor of up to 18 months. Meanwhile, for loans with BPKB Mobil, you will get a tenure of up to 48 months. Everything depends on the capacity and ability of the prospective debtor in paying installments. On the other hand, if you apply for an unsecured loan, such as through an online loan platform, the tenor is shorter and varies from a few days to a few months.
3. Compare Interest Rates and Other Costs That Appear
After you determine the loan amount and tenor, then you can compare interest rates and other fees that arise when applying for a loan. The number of interest rates offered between financial institutions is quite competitive, so you must be observant in determining it. In addition, you must also pay attention to the initial costs that arise when applying for a loan such as administrative fees and provision fees. Make sure, you get the benefits that are commensurate with some of the conditions given.
4. Pay attention to the Credibility of Financial Institutions
Tips that are no less important are to pay attention to the credibility of the lender. For example, since when the company was founded, how many branches are spread throughout Indonesia, and what is certain is whether it has been registered and received official permission from the OJK. Some of these things can be used to review the quality of lending financial institutions.
5. Prepare the Required Documents and Requirements
The last tip is to prepare the required documentation requirements well in advance of the submission day. Generally, the documents needed are KTP, Family Card, NPWP, Salary Slip, and Business License if you need a loan for business capital purposes. Each loan product may have different requirements, so you need to be more careful in getting the information.
Those are the three types of low-interest loans that can be your alternative in applying for a loan along with tips for getting it. Each loan product has different risks. Everything depends on the size of your loan needs. Again, be careful in choosing an entity that offers low-interest loans. If you need a loan for investment purposes, business capital, children's education funds, to house renovation costs, you can always apply for it through BFI Finance! Of course, BFI Finance has been registered and supervised by OJK. In addition, BFI Finance has more than 300 branches and outlets spread throughout Indonesia. So, just trust your financing through BFI Finance!