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.