credit

Credit
from : wikipedia.org


Credit is a financial facility that allows a person or business entity to borrow money to buy products and pay it back within a specified time period. Law No. 10 in 1998 states that credit is the provision of money or bills that can be equated with that, based on the approval or agreement to borrow loans between banks by another party that requires the borrower to repay the debt after a certain period with the provision of remote interest. If someone uses a credit services, it will attract interest charges.

Credit Terms

When banks lend money to customers, the bank certainly expect their money back. Therefore, to minimize risk (the money is not returned, for example), in providing bank loans should consider a few things related to good faith (willingness to pay) and the ability to pay (ability to pay) customers to pay back the loan with interest. These consist of Character (personality), Capacity (capacity), Capital (capital), Colateral (guarantee), and Condition of Economy (economic conditions), or often referred to as the 5C (five C).

Capacity

Capacity is related to the ability of a debtor to repay their loans. To mengurukurnya, creditors may examine the debtor's ability in management, finance, marketing, and others.

Capital

By looking at the amount of capital owned by the debtor or to see how much capital invested in the business debtors, creditors can assess the debtor's capital. The more capital invested, the debtor would be considered more seriously in business.

Warranties

Required to guarantee in case the debtor can not repay loans. Usually the value of collateral is higher than the loan amount.

Economic conditions

Economic conditions in the surrounding residential debtor also must be considered to take into account the economic conditions that will occur in the future. Economic conditions that need to be considered among other issues the public's purchasing power, market area, competition, technological developments, raw materials, capital markets, and so forth.

The things agreed in Credit Agreement

* Credit period
* Interest rates
* How to penbayaran
* The collateral / credit guarantee
* Administration costs
* Life insurance and billing

Types of credit

* Investment Loan

Credit medium and long-term investment for capital goods such as factory construction, purchase of machinery.

* Working Capital Loan

Credit short or medium term given to the financing / purchase of raw materials production.

* Credit Consumption

Individual loans for the financing of personal items such as homes (Mortgage-Home Ownership Loan), vehicles (PPP-Motor Vehicle Credit), others such as credit without collateral.

* Business Credit Without Interest and No Collateral

Credit is provided specifically for small and medium businesses. Such credit is very ease to entrepreneurs but pencairannya selection process is very strict, such as the People's Business Credit (KUR) and Credit InDelSa.

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