Nowadays, with many needs that continue to grow or may require capital to open a business, there are opportunities for the financial industry to provide loans. Many sources of loan funds can be accessed, for example through loans to banks, cooperatives, or fintech P2P Lending. Then how to borrow money from conventional banks, see the article!
How to Borrow Money at the Bank
Ensuring Credit Score
The first thing you need to do is make sure you have a good credit score. Credit score is a history of loans that you have ever had. Starting from home loans, vehicles, and electronic goods, or other goods. On the credit score, the bank will see how your ability to pay loans or installments is. If it is considered to have a good credit score, then the bank will certainly consider you to be given a loan.
Meet the requirements proposed by the bank
Each bank certainly has different terms and conditions in providing loan funds. However, in general, some of the conditions requested by the bank include:
- Photocopy of identity (KTP and Family Card)
- Copy of income or salary slip
- Copy of TIN
- Photocopy of savings book
- Collateral ownership documents such as BPKB, certificates (If you take a secured loan)
Applying for a loan that suits your needs
The bank certainly will not want to take the risk of providing loan funds to customers if they are deemed unable to pay it off. For example, you only have an income of IDR 5 million per month, but when you apply for a loan, you apply for a loan of IDR 500 million for business capital.
Seeing your income which is only Rp. 5 million, it seems that it is difficult for the bank to provide the loan funds that you are applying for, because you will most likely find it difficult to pay the installments. As much as possible apply for a loan according to your ability to pay.
Determine the tenor of the loan
Tenor is the loan period that is determined according to the agreement between the debtor and creditor, and within that period you must pay the loan installments every month. The longer the loan tenor you choose, the lighter the installments paid each month. However, the risk that comes from choosing the length of the loan tenor, the interest borne will be greater.
Difference Between Bank Loans & Online Loans
Requirements & Application ProcessThere are quite a lot of document requirements needed to borrow money from conventional banks and the process is generally quite complicated and takes a long time. While online loans through fintech lending offer an easier process.
Defrosting TimeSubmissions at the bank take a long time to process the approval and disbursement of funds. In fact, there is a possibility that you also cannot make a disbursement, even though the application has been approved because it is constrained by a problematic credit score. In contrast to fintech lending, the process of disbursing funds is fairly instant.
Loan interestBank loans do charge lower interest rates, while online loans through fintech lending have higher interest rates.
SecurityBorrowing funds from a bank is safe because every bank is registered with the Financial Services Authority (OJK). Meanwhile, not all online loan services from fintech lending have been officially registered with the OJK, so you have to be more selective and choose legal ones.
Interested in applying for a loan for business capital? You don't need to worry, because Danamas is a legal fintech lending that can help you develop your business. With a property-backed loan, you can get additional business capital of up to billions of rupiah. What are you waiting for? Immediately realize your business with a loan from Danamas.
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