Tips for Choosing the Most Profitable Multi-Purpose Credit

Multi-purpose loans can be submitted for various debtor needs, where loans can be used for various types of needs. The important thing is that you are able to pay installments on time, so that the collateral is not confiscated.

The greater the collateral value that is used as collateral, the greater the number of loans that you can get.

Generally, creditors will provide loans of 80% to 90% of the estimated value of the collateral assets.

Multi-purpose loans are often considered negative when compared to KTA because of the existence of valuable assets that must be used as collateral for loans.

But what are the strengths and weaknesses of KMG? See the discussion below:

 

Advantages of Multi-Purpose Credit (KMG)

Advantages of Multi-Purpose Credit (KMG)

It is true that there are many types of loans in circulation and many people choose KTA because they do not need assets as collateral or collateral.

However, in fact there are several advantages of multi-use loans that cannot be equated with KTA, including the following:

 

  • High Loan Limit

One of the big advantages of multi-use loans is the high loan limit . How come? One of the reasons banks provide large limits is because of the guarantee of assets as a loan condition. Thus, the risk of the bank losing money when the customer experiences default is smaller than the KTA.

 

  • Longer Tenor

A number of banks provide a fairly long tenor for multi-use loans, even up to 10 years or more. The aim is to anticipate the ability of customers to repay loans in very large amounts, given that the number of multi-purpose credit loans is generally greater than other types of loans.

 

  • More Flexible Use

As the name implies, multipurpose credit can be used for various purposes. Unlike KTA which is usually used for consumptive purposes, multi-purpose loans can be used for several purposes, for example for business capital. The bank will provide a loan regardless of the purpose of the loan, provided that there is a guarantee required.

 

Weaknesses of Multi-Purpose Loans (KMG)

credit problem

After seeing the various advantages, of course you become interested in applying for multi-use loans.

However, first know some of the following multi-use credit weaknesses that you can consider before taking them:

 

  • Don’t Have a Guarantee, Can’t Borrow

Because collateral or collateral is one of the requirements for multi-purpose credit, if you do not have valuable assets to be guaranteed as a loan, then you cannot apply for multi-purpose loans. One alternative solution is to take other types of credit that do not require collateral, for example Personal Loan (KTA).

 

  • Failed Pay, Floating Assets

This is one of the main problems of multi-use loans. You are at risk of losing your valuable assets if you fail to pay. By applying for a multi-purpose loan, we recommend that you plan well the purpose of using the loan and the details of the return every month to avoid losing your valuable assets.

 

  • Submission process is longer than KTA

The bank will need more time to assess whether the assets submitted are in accordance with the value given. For example, if you provide a guarantee that is not in accordance with the amount of your loan, then the bank will ask for additional assets to cover the nonconformity. Therefore, the multi-purpose Credit submission process will be longer than KTA.

 

Taking Multi-purpose Loans without Regret

credit problem

The choice of loan products can have a big influence on your financial planning.

Therefore, use some of the tips above so you can take multi-purpose loans without any regrets later.

Remember that credit is a commitment with a long enough period, can be 1 year, 2 years, even up to 10 years. So you have to choose KMG products that are right and in accordance with your ability to avoid difficulties later.

Do not let the intention to borrow money for good causes you to lose valuable assets!

Don’t Immediately Be Tempted, Understand Credit Card Cash Fund Well

Today, many banks offer credit card cash products. But actually what is a credit card cash?

Is it the same as KTA?

Before you are tempted, let’s understand carefully about credit card cash:

 

What are Credit Card Cash Funds?

What are Credit Card Cash Funds?

Even though this feature has been rife, there are still many who don’t understand what credit card cash is.

Therefore, Allan Wend will discuss it clearly in this article. Credit card cash is a loan in cash using the remaining credit card limit. This facility allows credit card holders to take cash from the remaining credit card limit they have. The refund is then made in the form of a fixed installment printed on the credit card bill every month for a certain period of time.

Generally the bank will offer this facility to passive credit card users, to make a profit. Thus you need to be careful in making decisions. Don’t end up in debt that has piled up! Well, many people equate cash credit cards with Personal Loans (KTA).

Actually are they similar products? Let’s look at the discussion about the following KTA and its comparison with credit card cash!

 

What is Unsecured Credit?

Unsecured Credit

Unsecured loans (KTA) or often referred to as unsecured loans are loan products from banks that do not require debtors to guarantee an asset. KTA is usually used for customers who are in need of fast funds. Different from some other types of credit, you can use a KTA loan for any need.

KTA is generally used for consumer needs that require fast funds, including:

  1. House renovation
  2. Treatment
  3. Business capital, etc.

 

Some of the advantages of KTA products when compared to other credit products are:

  1. The submission process is fast and easy, and does not require a guarantee
  2. The document is a small submission requirement
  3. The amount of payment can be repaid in accordance with the agreement with the bank
  4. The payment process is quite easy
  5. Can be used for any purpose
  6. Easily found in certain banks or financial institutions
  7. Fixed interest rates during the credit contract period

 

Besides its many interesting advantages, KTA also has several disadvantages, including:

  1. Limited loan limit
  2. The tenor of a short loan depends on the amount of the loan
  3. You must have a professional status with income every month
  4. Generally, you will be asked to open an account at a related bank
  5. Interest rates are quite high because there is no guarantee
  6. There is a penalty fee if you pay off the loan before maturity

 

How the Credit Card Cash Works works

How the Credit Card Cash Works works

So, that’s about how credit card cash works. Similar to other loan product submission procedures, with the following differences:

  • Submission of credit card cash can be done directly at the bank, but it is generally done via telephone when there are offers from telemarketing. Therefore, credit card cash is often also called loan on phone .
  • The tenor can be negotiated with the bank, as long as it still follows the provisions of the bank concerned.
  • Installments are directly charged to credit card bills.
  • The interest rates tend to be small compared to KTA and credit card cash withdrawals.
  • Interest rates can be flat or effective, depending on the provisions of the bank concerned.
  • There are costs of accelerated repayment fines and other fees that commonly appear on loan products.

 

Comparison of Credit Card and KTA Cash Funds

Comparison of Credit Card and KTA Cash Funds

Because of its ease and fast process, many people equate credit card and KTA cash. In the community’s view, both are in the form of loans for those who need funds quickly and urgently.

Now, after getting to know the two briefly above, now let’s look at the differences and compare credit card and KTA cash funds.

Characteristics Credit Card Cash Fund Unsecured Credit (KTA)
Average interest rate 0.5 – 0.8% per month 0.9 – 1.2% per month
Amount of funds lent The calculation is obtained from an average of 6% to 90% of available credit card limits Depending on income per month (usually seeing a debt ratio not exceeding 30%), generally the value is around 3 million to 150 million rupiah
Tenor period 1 – 1.5 years 13 years old
Fines or accelerated repayment expenses Sanctions, around 5% of the remaining principal debt plus the remaining interest from cash. Expenses, amounting to 5-6% of the remaining principal loan debt plus current interest.
Length of process until disbursement of funds 3-7 working days 7-14 working days
Requirements Photocopy of identification such as identity card (KTP) and related bank account. Salary slips, photocopies of credit cards, and photocopies of bank accounts within the last three months.
Submission procedure

Through offers from telemarketing banks or going to banks.

* Generally if you go to a bank, interest tends to be higher.

Go directly to the bank in question
Additional costs

Administration fees are generally 1%

Administration fees are generally 2%
The process of taking funds

Funds are transferred directly to the customer’s account

Funds are taken directly by the customer
Payment process

Installments of credit card cash funds will be charged in the form of fees on credit card bills every month

KTA payments are adjusted to the number of installments per month

* Note: The information above can change at any time

 

Should you choose Credit Card Cash or KTA Funds?

Should you choose Credit Card Cash or KTA Funds?

Now you know some easy and practical fast loan products. But don’t be careless about making decisions without careful consideration. Remember that debt is still a pretty heavy commitment. You need to know your financial ability to pay it off before deciding to apply for a loan.

The 6 things you should consider when comparing KTA and credit card cash are as follows:

  1. Adjust to the loan ceiling requirements
  2. Adjust to the needs of the loan period
  3. Look for the smallest loan interest
  4. If you need fast funds, look for the fastest disbursement process
  5. Look for products with easy and simple loan terms
  6. Look for the cheapest product at the other cost

Do you have questions about other credit card cash? Leave your comment below . If you have questions, please submit your question in the column below. Our Financial Planner is ready to help you, thank you.