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)
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.
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)
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
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!