Things to Consider When Applying for an Unsecured Loan Credit

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One banking product that is considered to be very helpful to the public is unsecured loan loans or commonly abbreviated as KTA. Unlike other types of credit that require creditors to surrender valuable assets as collateral or collateral, in the Unsecured Loans, the bank does not require at all even not asking customers to provide collateral. That means that everyone has the same opportunity to get an injection of funds even though he does not have valuable assets.

The majority of customers who apply for unsecured loans or KTA loans are people who are looking for alternative financing to meet the needs of a large enough amount, for example, to finance college tuition, to renovate a house or to finance holidays abroad. In addition, many of the customers who apply for this credit come from entrepreneurs and professionals who need funds to start a business or to help with their business operations.

Almost every bank in Indonesia has unsecured loan credit products, both large-scale banks and people’s credit banks. One main requirement to be able to get this credit is to have a credit record that matches the criteria made by the bank. Here, customers who are accepted or passed their application for obtaining unsecured loans are usually those who are not blacklisted by Total United Bank.

However, what is the difference between unsecured loan loans and other loan products? Here is a brief review:


Credit type

credit loan

In general, the purpose of a customer using funds from unsecured loans must be adjusted to the financial condition he has. Everyone is allowed to apply for a loan according to their needs, but they must also be able to repay it in accordance with the agreements that have been made and made within a predetermined tenor or time period.

Loans without collateral itself are also very suitable for people who need access to fast funds as temporary bailouts.


Tenor or Duration

unsecured loan

Every unsecured loan approved by the bank is permanent and also based on contracts made with the bank. The credit period or period in which the customer makes monthly payments is a very important part of the contract. Therefore, when you want to apply for a loan without collateral, it is better to consider the term of the loan so that later you do not feel heavy to pay installments.

Many banks impose penalties or fines on customers who are late in paying loans. This is also usually applied if the customer repays the loan faster than the agreed tenor. Therefore, choose the time period that is most appropriate for you, whether 12 months or more.


Monthly Fixed Interest

Monthly Fixed Interest

In most unsecured loans, the total number of customer loans is referred to as the principal. When a customer pays monthly installments, then he not only has to return the loan principal but is also required to pay interest on the loan. This is a form of compensation for services provided by the bank. Usually the interest on loans in unsecured loans uses a fixed monthly interest system. This should be taken into consideration when you want to apply for this credit. therefore, choose a bank that does provide loans with the lowest credit interest.


Total Installment Payments

loan Payments

The amount of installments or installments that must be paid every month is the accumulation of the principal loan, loan interest and administrative costs. Customers should use this amount as an indicator of total expenses each month. Beware if the loan provider or creditor does not provide complete information related to the installment details, because there is a possibility they have hidden financing.

It is not difficult to find a bank that is willing to provide unsecured loans because almost all banks have the product. however, one thing that must be kept in mind is that each bank has a different policy, especially in terms of the application of loan interest. As much as possible, look for a bank that imposes low interest rates and provides flexibility so that later you don’t feel burdened.

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