HALOMONEY'S GUIDE FOR PERSONAL LOANS IN INDONESIA

EASY AND QUICK STEPS TO UNDERSTAND PERSONAL LOAN PRODUCTS IN INDONESIA

There are two different types of personal loans offered in Indonesia: Fixed Instalment Loan and Overdraft. These types of loans can be used for multiple purpose, whether it’s for house renovation, education, car repairs, and many more. You also do not need to put any collateral. Another difference is that personal loans have fixed interest rate, compared to other type of loans which usually have both fixed and variable interest rates.

The major difference between fixed instalment loan and overdraft is how the charge interest rate on the loan value. In fixed instalment loan, you will be charged by the total amount of loan you take. With overdraft, you will be charged by total amount of loan you use. With overdraft, you can also negotiate repayment period with the bank representative.

Payday loan is a type loan in which the interest rate is compounded daily, with a short-period tenure (usually less than 3 months). Payday loan is usually provided by a non-bank financial institution (other than Bank). Interest rate on payday loan, is higher than other type of personal loan products, since loan default risk is usually higher and the economies of scale of the provider is not-as-big as Bank, thus making interest rate charged higher than Banks.

The total amount of monthly interest we need to pay on your fixed instalment loan can be calculated by multplying loan value by total interest rates over loan periods (monthly interest rate times loan periods), then divided by the total loan period.

The shortest fixed instalment loan tenure is 3 months and the longest is 5 years. Banks usually give the longest tenure (5 years) for debtors whose payrolls are paid through them.

The minimum loan value is different from each bank. However, on average banks set the minimum loan value at the range of 3-5 million rupiah. Several banks can give personal loan up to 350 million rupiah.

Getting a fixed instalment loan in Indonesia is pretty straightforward. Local lenders and financial institutions advertise fast processing times and give instant approval if you’re able to meet all qualifications. Some lenders would grant you approval in as quick as one business day!

You have to present some financial documents to get approved for a personal loan. First of all, you have to be of legal age. You’d also need to be employed. If self-employed, you’d be asked to submit documents related to your business as proof of income. Proof of billing and tax returns are also commonly asked for by lenders during the application process.

Based on the total amount you’re looking to borrow, you can browse the best personal loan offers in Indonesia using Halomoney's personal loan comparison tool. See interest rates, total loan amounts, and monthly repayment amounts all in one page.

See HaloMoney’s Personal Loans Guide page for more detailed information on loan applications.