UKM or commonly known as Small and Medium Enterprises in Indonesia has been proven to be able to absorb workers who need jobs, UKM also helped Indonesia during the crisis experienced a few years ago. Now we can also see various types of capital that are devoted to helping small and medium businesses. The form of capital also varies from investment, working capital or SME loan loans.
For the latter, there are many types of SME loan loans, some of which are based on utility, some are based on collateral. We will discuss further each of the SME loan loans themselves. But before discussing this matter, we first know the classification that has been regulated by Law number 20 of 2008 concerning micro, small and medium enterprises. Of the three, each is also distinguished according to their respective income each year.
Definition of Micro, Small and Medium Enterprises
- Micro Business, it has been regulated based on Law No. 20 of 2008, namely microbusinesses which have a maximum net worth of USD 50 million or a maximum income of USD 300 million each year.
- Small Business, also has been regulated in Law No. 20 of 2008, namely a business that has a net worth of $ 50 to $ 500 million or a business that has a sales value of $ 300 million to $ 2.5 billion.
- Medium Enterprises, Law No. 20 of 2008 states that a medium-sized business is a business that has a net worth of USD 500 million to USD 10 billion or also a business that has a sales value of USD 2.5 billion to USD 5 billion.
The government has also relied on SMEs to continue to make positive contributions and help the national economy. Now we will discuss the types of SME loan loans.
Credit Based on Use
Working capital credit
A working capital credit is a loan that can be used as initial capital in a business. Usually these loans have a term of one year and can be extended. Some banks also have many products that can develop this SME business.
This one credit is an SME loan which is more investment-like where it is used when the debtor wants to use the loan to develop his existing business. This investment credit is given to those who have a business for at least more than 1 year. Because, in this investment credit, business actors have a maximum term of up to 5 years and the funds proposed are also quite flexible.
Credit Based Guarantee
Credit With Guarantee
This one credit is a credit that has a condition of having collateral or collateral in the form of assets such as houses, land, vehicles and others. This loan has a fairly low interest payment compared to the others, also has a longer term and a greater nominal. But besides that, the drawbacks in this credit are that the disbursement process takes a long time, because usually the bank conducts surveys and so forth. What is rather difficult on this credit is the guarantee to get the loan.
In this case banks usually need a guarantee of course to ensure that a Borrower can pay off in accordance with the agreement along with the guarantees that he has guaranteed.
Loans without collateral or as you are familiar with the name of this KTA has credit without using collateral meaning that when you apply for a loan you do not need to use collateral. However, don't think that they cannot confiscate your assets even if you don't pledge them. The bank can still do the legal process if you are coming not to repay your loan.
This loan can be used if you have a problem with funds, but it is advisable to apply for a KTA if you do not need capital that is not so large because usually the interest from this KTA is quite high. It's just that in the process of disbursement only a short time. In addition to the relatively high interest rates, the other shortfall is the short term of the nominal loan size.
What are the loan fees?The origination fee is the fee you pay the lender to process your loan application. Depending on your lender, costs can be linked into one line item, or they can be line items. Typical origination fee names include application fees, insurance fees, and processing costs. Lender fees can also include "points," which are optional payments that allow you to get a lower interest rate. The term “processing fee” doesn't tell you much, but lenders charge these fees for all the tasks required to close your loan. Some of these features include:
- Collecting and organizing your documentation
- Analyzing your income, such as self-employment earnings, rental income, and deductions
- Seek information from employers, the IRS, and others
- Checking that the documentation is correct
- Ensure that your application meets the criteria for government programs or that it can be sold to investors
How to Reduce Origin Fees?If you are hesitant to pay thousands of dollars in tax credit, you have several options. Shop around: With every significant credit, it is essential to get quotes from at least three different sources. Compare the lender's interest rate and total costs to find the best solution. The specific names used for origin taxes are less important than the total dollar amount. Just pay: The simplest approach is to pay upfront fees. This is also the best approach, but at least you will know how much you are spending and you have the opportunity to get lower rates when paying up front. Advertisers can promote credits at no charge, but no one works for free. The less you pay, the higher your rate will be. Get Loans: You can choose to take a higher interest rate using negative points if it makes sense to do so. By accepting a higher rate, your lender will make funds available (known as loan lenders) to pay for closing costs. But it's best to do it with a transparent lender that shows you a few options - with and without credit facilities. At a higher rate, you will pay more interest over the life of your loan, so the negative points make the most sense when you keep the loan short. Negotiate: Ask your lender to waive the origination fee without changing the interest rate. You may fail, but you never know unless you ask. You have the best chance of saving money if you have great loans, an uncomplicated source of income and a relatively large loan. Get Gifts: If you have generous relatives, ask your lender about paying gift tax fees with gifted funds. The money may need to come from a family member who is willing and able to help you document it in writing. Seller concessions: If you are buying property (as opposed to refinancing), the seller will be able to pay some closing costs for you - as long as the purchase agreement allows it. Even in the seller's market, this might be an option if you adjust your bid price to reflect the concession.
How much do you have to pay?Origin costs depend on several factors. You might expect to pay only 0.5 percent for processing costs, or somewhere around 2 percent at the higher end. However, the devil is always in the details, and you have to weigh the fees with other factors - such as your interest rate - in mind. For larger loans, fees should be at the lower end of that range. However, small loans do a similar job, so lenders can pay relatively high tax rates. What about points? Remember origin and discount costs pay for different things. The discount point lowers your interest rate, and origination fees reimburse your lender for closing the loan. However, the term “credits” is used informally to refer to one percent of your loan amount, whether you are talking about processing fees or discounts. He always asks for clarification if you are not sure what to borrow.
Other closed costsThe origination fee is not the only fee you pay. You will pay additional closing costs, which are also listed on the other side of the credit assessment. These costs include services provided by third parties, but your lender organizes those services so that they may look like fees to the lenders. For example, lenders have to check your loan, order an estimate, and collect fees to fund government programs. For some closing costs, you can buy and find a seller who charges less potentially saving hundreds of dollars. Together, closing costs - plus taxes and other expenses - can be between 2 and 5 percent of your loan amount.
What is the personal loan for?This type of loan is intended to help households. It is intended to finance purchases and services. The money can finance the purchase of a state-of-the-art household appliance, automobile, computer. It can be used in repair, renovation and fitting out of premises. The money can finance a wedding, a trip or medical expenses. It can constitute a small cash for unforeseen expenses.
What are the conditions for obtaining the personal loan?The personal loan ranges from 500 dollars to 75,000 dollars. The amount depends on the borrowing capacity of the borrower. The repayment period ranges from four months to 60 months. The borrower must have a stable job and regular income. His banking education is excellent because he is not on file. In the contract, the lender indicates all the fees, the total cost of the credit, the APR and the cost of the insurance which is optional.
Why simulate the loan request?To get the right offers, you have to carry out a credit request simulation and go to a specialized site. The simulator is free and without obligation. The borrower will know his debt capacity, the amount that suits him, the duration, the best APR and the monthly payments. The borrower compares the offers. He chooses the best offer. The practicality of the personal loan is explained by the possibility of negotiating it entirely online. In case of agreement, the funds will be released, in their entirety, by transfer.
The paycheck loan can be a great alternative for those who need a credit to settle debts or fulfill a dream.
Today, millions of Brazilians are in a difficult financial situation and access to credit is the way these people find themselves out of it.
There is a payday loan modality for employees of private companies, but many still have doubts about how it works and how to help the employee at that time.
In this article, we are going to give you some tips on how HR can act to facilitate employee access to a loan. Look.
What is a payday loan?
This is a type of credit that can be requested by employees of a specific organization. In fact, it works for retirees, pensioners, civil servants and employees of the private sector, but we will focus on the latter.
Companies enter into an agreement with certain banks and institutions and offer this type of credit to employees.
The installments are deducted from the payroll and passed on to the banks, according to the payment method chosen.
We must remember that the interest rates of this modality are lower than those of traditional loans.
What can the Human Resources sector do to help?
- Access to information
Passing on all relevant information to the employee is a great help.
Many people, in the time of despair, apply for credit without knowing for sure what they are doing and for this reason, it is very important if the HR sector can help.
Take the employee's doubts about the form of payment so that there is no doubt.
- Give financial education tips
Currently, on the internet, there are numerous financial education courses that can be accessed for free. Refer some to employees and encourage them to practice this.
It is extremely important to prevent more debts from arising in the middle of the road.
- Show the best options
HR can show employees what are the best options when choosing which institution will provide the loan.
Make an analysis of the amount of installments and interest charged for each of them. After that, show the employee all the results and help him identify which one best fits his situation.
Advantages and benefits of taking a payday loan?
1. Fast credit and no paperwork. It does not require the presentation of numerous documents, just the basics.
2. The fees are fixed and the employee will not have any unpleasant surprises when receiving his payment, after all, the values are informed at the time of hiring.
3. It has the lowest interest rate on the market. It is a great option for those who cannot compromise their monthly income.
4. This modality prevents the consumer from defaulting, as the amount is automatically deducted from his payment.
5. Payments are made on a fixed date and already discounted. Therefore, the customer does not need to be concerned about receiving some form of payment slip or facing a queue to make payment.
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