Frequently Asked Questions About Personal Loans

You have reached HaloMoney's personal loan FAQs page. Find answers to some of the most commonly asked questions about personal loans and personal loan applications in Indonesia. For additional reference, you may also go to our main guide to personal loan or the personal loan glossary of terms.

Fixed Installment Loan FAQ

Processing time for personal loan varied for each bank. On average, it takes 14 days from the date we apply for one until the loan is disbursed. However, several banks can process your loan only in 2-3 days. Other thing that affect processing time is historical credibility of debtors. If the debtors had previously take loan from a bank and repay it on time, then the next time they borrow to bank they might get approved faster than someone who never before applies for a loan.

First is annual fee. Bank usually charge different amount of annual fee for the first year and the following year. For the first year, bank will charge you a certain percent of fee from the total loan value upfront, and will be deducted from your loan value. The following years, bank will charge fixed annual fee, which must paid on the 13th of the month, the 25th, and so on.

Second is administration fee. Bank will charge this fee upfront, usually deducted from the initial loan value.

Third is loan disbursement transfer fee. Banks will charge this fee upfront, usually deducted from the initial loan value.

Fourth is late payment fee. Banks will charge you if you failed to pay the instalment until deadline.

Fifth, early repayment/cancelation fee. The bank will charge a certain percentage from the total loan value that had not yet been repaid.

Every bank has different method to evaluate customer loan application. However, there are some process that bank analyst will usually do to evaluate their potential customer.

First, the analyst will do BI Checking, a process where he or she downloads the credit history data from the Bank Indonesia Debtors Information System. On that system, all historical activities regarding the credit card and loan is recorded. This is the initial step to evaluate customer application quality.

When you already pass BI Checking, the analyst will do a phone survey to confirm and validate the application form you have filled in. Don’t lie during the survey because it might harm your current and future application process.

If you are qualified with bank's standard, then in several days after the survey, it will call you again to sign the contract and your loan is ready to be disbursed.

Several banks requires you to enclose a credit card bill copy regardless of the loan value you ask. Yet there are also banks that do not require you to enclose credit card bill copy until a certain loan value limit. Check the requirements at HaloMoney's personal loan comparison page!

Yes, you could negotiate the interest rate charged on your loan. You need to call the bank representative to negotiate for a lower interest rate. Banks usually can give lower rates for credible and trusted debtors.

Overdraft FAQ

Banks also offer secured overdraft, in which debtors need to put collateral. Usually, interest rates on secured overdraft is lower than unsecured one. In Indonesia, an example of an asset that can be put as collateral is time-deposit.

Overdraft fees is varied for each bank. But in general, overdraft fees are quite similar to fixed instalment loan fees. Several banks in Indonesia even waive overdraft administration and cash withdrawal fee to attract customers.

Payday Loan FAQ

Payday loan usually can be disbursed in a very short time, many can be processed less than a day. Before you taking out your loan, lenders will arrange meeting physically or by phone to explain fees, terms of payment and other responsibilities that occur when you agree to take out the loan. The interest will compounded on daily basis. For a discipline debtor, lenders usually charge lower interest rate for the next borrowing.

First, interest rate fee. It will componded daily from principal amount. Second, extension fee. Borrowers is able to extend their loan, if they can't repay their loan. Third, late-payment fee. Lenders will charged borrowes with a huge fee if they can't make payment on time (and borrowers didn't get approval for extension). Fourth, debt collector fee. This fee will be add to your balance if you ask lenders to take out payment for your loan at your home.