Borrowing money is practically easy and easy. Depending on the conditions imposed by the place you borrow. For example, your loan application will be approved if you have collateral, have a credit card, or have a really good credit history.
Here are some recommendations for where to borrow money that you can try. Each has advantages and disadvantages. Both in terms of the loan itself and the criteria that you must meet.
Borrow Money from Friends or Relatives
The easiest way to borrow money is to borrow from your closest friends or relatives. You do not have to provide guarantees or certain document requirements, such as when borrowing from a bank. Depending on the agreement between you and friends or relatives.
However, this method sometimes risks “disrupting” personal relationships. Especially if you are late in paying off loans. Or, sometimes cause certain gossip.
In addition, of course, the number of loans you can get is fairly limited. Because the number depends on the ability or desire of your friends or relatives.
Make a Loan to the Bank
Provided that you meet the criteria and conditions requested by the bank, your loan will be approved. Borrowing from banks also provides more benefits, namely greater loan amounts with relatively low-interest rates. Here are some types of loans to banks.
- KTA (Unsecured Loans)
KTA is a loan product from a bank that you can apply for without needing to provide collateral. The interest rate for this loan is around 0.6 percent to 1.9 percent with a tenor of five years.
The requirements for getting a loan are Indonesian citizens, have a steady income and have a good credit history.
- Multipurpose Credit
If you do have assets to pledge, there is no harm in trying multipurpose loans when you need to borrow money. Because multipurpose loans have a number of advantages compared to KTA.
Multipurpose loans apply a much lighter interest rate, which is around 9 percent per year. Then, the number of loans granted is far greater than the KTA. Plus, the tenor can be longer.
To get a loan from this bank loan product, of course, you need to attach the terms of the asset documents.
- KUR (People’s Business Credit)
If your goal is to borrow money for business, then KUR can be the best alternative. This people’s business credit loan product is intended for those of you who already have a business. The interest is also much lighter, which is 7 percent per year.
Nonbank Loan Institutions
Nonbank financial institutions are institutions that are not banks, but provide a variety of financial needs. For example, FIF ( Federal International Finance ).
To get a loan of money through these institutions, you must provide collateral. Usually in the form of BPKB motorbikes, land certificates, and others. The interest rates applied are around 0.25 percent to 0.5 percent per month.
Pegadaian is a state-owned company that is engaged in financing and saving gold. For financing, as the name suggests, you need to mortgage certain assets.
What makes it different from bank loans or non-bank lending institutions is that assets that can be guaranteed in pawnshops are quite varied, for example, cellphones, jewelry, or other valuable objects. Then, the pawnshop will estimate the value of the item and determine the amount of the loan based on the value of the item.
For information, the interest applied depends on the term of your loan repayment. Typically, the interest rates applied start from 0.75 percent.
Cash Advance Credit Cards
If you have a credit card and need a fairly large loan, a credit card can actually be an alternative. You don’t need to submit an application and wait for approval. Just enter the credit card into the ATM machine and select the Cash Advance menu.
As long as you pay on time in the next month, no interest will be charged on your loan. All you need to pay for a cash advance is usually only a cash withdrawal fee of around 4 percent of the total withdrawal of funds or a minimum of USD 100,000. It depends on your credit card issuing bank.
So, for example, you withdraw cash via a credit card of USD. 2 million, then you will be charged a fee of USD. 60 thousand. These fees will appear on your credit card bills.
Those are some of the places you can try when you need to borrow money. Please choose based on the loan amount you need, the term of repayment, and the suitable interest.
Do not forget, just submit a loan for the amount of money as needed and not burdensome yourself when you have to pay it off later. Make a budget plan to ensure your finances stay safe.