Are you planning to get a personal loan for an urgent financial need such as a new home appliance?

Knowing the pros, and cons, the benefits, and types can help you make the best use of a personal loan. Let’s check this out in Finansialku!


What Is Personal Loan (Kredit Tanpa Agunan)?

In Indonesia personal loan is known as Kredit Tanpa Agunan (KTA), a credit that is not backed by a collateral. Personal loan was first introduced by a multinational banking in England, Standard Chartered PLC.

Many banks in Indonesia issue this type of loan. KTA is a banking product in the form of a credit given to individual without any collateral required to obtain the credit.

Sudah Tahu Apa Arti Cash Loan Kenali Juga Plus Minus Cash Loan! 01 - Finansialku

[Read Also: Credit Card Number: Meaning and How To Protect It From Forgery]


Compare to other loan such as credit for housing (for example KPR), the procedures, and requirements to obtain KTA is relatively easy, and quick.

This make many people prefer KTA as a solution to meet their financial needs over other loan products. But that’s isn’t the only reason.


Why Personal Loan

Many debtors prefer personal loan rather than other type of loans to meet the quick funding for their financial needs.

In cases such as unexpected bills, a vacation, home renovation, and even student loan, people are apt more to personal loan.

Some use this loan to fund their business, and for consumptive purpose. One of the reason is because PL doesn’t need any asset to back it.


Pros and Cons of Personal Loan

Before planning to take a personal loan, it is better to know the pros, and cons. Let’s see the description below.


Personal Loan Compare to Other Loan Products

The following are some pros of a personal loan compare to other loan products.


#1 Application process is easy

Why most people prefer to have personal loan is its procedures are easy, and quick. While for a secured loan application process, it takes rather a long time. Even your application might be turned down.

Moreover, a conventional credit requires a survey, evaluation of the asset used to back the loan, and other requirements.

Now with technology we can apply online for a personal loan. You can download the formulir any time, and thus make the process even faster, and easier.


#2 No collateral required

Besides the easy process, personal loan requires no collateral. Not only bank, but the customers also are benefited from this loan.

Customers are not required to give their assets to back up the loan such as home or other asset certificates, luxurious jewelry or goods.

This is a part of bank strategy of promotion to obtain customers as many as possible, and the bank gains profit from the interest rate that the customers pay.

Although there is no collateral, we must be disciplined to pay the installment based on the term. This will make you easy to apply the next time you want to borrow another loan from a bank.  

When you pay the installment on time, the bank usually gives bonuses such as adding another facility, and bonuses when you apply again for credit, such as increasing the amount of your credit ceiling.

Sudah Tahu Apa Arti Cash Loan Kenali Juga Plus Minus Cash Loan! 03 Pinjaman Tunai 3 - Finansialku

[Read Also: Investment Management Service And How It Works]


Credit ceiling is a maximum amount of money you can borrow from a bank.

With all its easy application and requirements maybe you wonder what happens if you fail to pay the installment?

If you experience this, then the bank has no authority to take over your assets. But, the bank will report you to Bank Indonesia (BI) that will process, and evaluate your credit.

If someone has a bad credit that is already worse, the customer will be listed in the negative list of BI. It means that he/she will have a difficulty the next time he/she wants to borrow from any banks in Indonesia.

As you can see easy requirements come with a stricter rules from banks.


#3 Loan for all purposes

Not only its easy requirements, and application, but in terms of purpose it is quiet flexible. You can use personal loan for any purposes, even to buy a new phone, or vacation.

There is a freedom given to use the loan for a customer’ financial purpose. No limitation apply to any types of goals include for a consumptive purpose.

However, to avoid bad credit, it’s better if you use the loan according to your financial needs, and your monthly income. Bad credit is a condition when a debtor can’t pay the installment of his/her loan anymore.

The question now is how do you know that you can borrow a personal loan, are able to repay it, and can avoid a bad credit?

Jangan Senang Dulu, Ini Fakta Tentang Kredit Tanpa Jaminan! 04 Suku Bunga - Finansialku

[Read Also: 8 Simple Indicators To Show Financial Health]


It is not a problem to take a personal loan as long as you have a health financial condition that enable you to repay your installment, such as positive cash flow, income, amount of debts, and inflation.

To help evaluate your financial health, you can check it freely here.

When your financial condition is ideal, having a personal loan is possible, and you can avoid risk of having a bad credit.


#4 Large amount of loan limit

The loan limit is a total number of money you can borrow. A large loan limit means you can borrow the amount of money that fits your needs.

However, the amount available will depends on your credit score, monthly income, and the terms of the bank.

Usually the ceiling credit in Indonesia can start from Rp 3.000.000 up to Rp 300.000.000.


#5 Long range of repayment period (long tenure)

Tenure is a period from the date your loan is given to the date of the closure of the loan.

This long tenure gives benefit for the customer, where he/she will have longer period to pay the debts. The tenure of personal loan is from 12 up to 60 months.


#6 A fixed interest rate

You don’t have to worry about the changing interest rate. Personal loan has a fixed interest rate monthly. So your payment is the same every year or month.


The Downside of Personal Loan

Despite all its advantages, personal loan also comes with its downsides. Let’s see the following description.   


#1 Have higher interest rates than other loans

When you see an advertisement that promote very low rates of a personal loan, it is usually the best rate for applicants with the best credit score.

For secured loans such as housing (mortgage), and vehicles, they usually have lower rates.


#2 A penalty for paying the loan early

If you finish paying all your loans before the due term, you’ll be charged with a penalty fee. It is a consequence that comes from having no collateral to back up the loan.


#3 May get trapped in a debt cycle

Using personal loan to pay down your debt, especially for credit card debts can get you into another debt cycle.  


#4 A regular monthly income

You need to have a profession with monthly income in order to apply for the loan.


#5 Short tenure

If you want to apply for a short tenure, then it will depend on the amount of money you borrow.


Remember that personal loan can be used effectively when you have an ideal financial condition, and financial needs. However, it is best to use personal loan to pay down unexpected needs, or other financial urgencies.

Notice also that using personal loan for a debt consolidation that is for repaying the other debts might get you trapped into a debt cycle, and are possible to have a bad credit risk.  

With that said, now let’s take a look at types of personal loan offered by several banks in Indonesia.


5 Types of Personal Loan

Knowing types of personal loan can also help make informed decision that is specifically based on your financial needs.


#1 Personal Loan for Short Tenure (KTA Dana Cepat)

This personal loan is a loan product that is given in a relatively short time. A client can receive the loan in less than a week.

This loan is for those who need money for an urgency or need a lot of money in a relatively short time.

For example, medical bills for a member in family who gets an accident which usually need a lot of money in a relatively short time.

The benefits of this personal loan are:

  • The amount of ceiling credit is huge, can reach up to hundreds of million rupiahs.
  • Loan liquidation is fast. Usually takes less than 1 week if customer has met all the requirements.
  • This product has a competitive interest rate based on the customer’ need.
  • The tenure is relatively short.
  • Application process is quick.


Now let’s see the banks that provide this type of loan.


#1 ANZ

Product: ANZ MoneyLine, ANZ Personal Loan Express, ANZ Personal Loan Reguler


#2 Bank Bukopin  

Product: Bank Bukopin Kredit Serba Guna


#3 CIMB Niaga       

Product: CIMB Niaga Xtra Dana


#4 DBS Indonesia 

Product: Dana Bantuan Sahabat


#5 Maybank

Product: Maybank KTA Payroll


#6 OCBC NISP       

Product: OCBC OnCash


#7 Bank Permata   

Product: PermataKTA Payroll, PermataKTA Regular, PermataKTA Speed Payroll


#8 Standard Chartered    

Product: Standard Chartered KTA Online, Standard Chartered KTA Reguler


Ebook Perencanaan Keuangan ENTREPRENEUR & FREELANCE

Download Sekarang, GRATISSS!!!

Mockup ebook entrepreneur dan freelancer


#2 Personal Loan for A Long Tenure (KTA Tenor Panjang)

It is a personal loan with a long tenure. The term usually more than 3 years.

The purpose of a long tenure is to decrease the amount of installment a customer should pay monthly which is benefited him/her.

This loan fits with those who needs a lot of money but want to pay in a long term. Those who run or open a business usually use this loan.  

The benefits of this personal loan are:

  • Having a ceiling credit with a large amount of money from every big banks in Indonesia.
  • Tenure last more than 3 years.
  • Loan liquidation is fast if all the requirements are fulfilled.
  • Interest rate is competitive.
  • Online application with easy, and quick process.
  • Additional fees doesn’t burden the applicant.


Here are banks that offer this type of loan.


#1 ANZ         

Product: ANZ MoneyLine, ANZ Personal Loan Express, ANZ Personal Loan Reguler


#2 BNP         

Product: Bank BNP KTA Payroll, Bank BNP KTA Scheme Khusus


#3 Bank Bukopin  

Product: Bank Bukopin Kredit Serba Guna


#4 Bank Mandiri     

Product: Bank Mandiri  KTA Mitrakarya, Bank Mandiri KTA Payroll


#5 BNI           

Product: BNI Fleksi


#6 DBS Indonesia 

Product: Dana Bantuan Sahabat


#7 Maybank

Product: Maybank KTA Payroll


#8 Bank Permata   

Product: PermataKTA Speed Payroll


#9 QNB Indonesia 

Product: QNB Personal Loan


#10 Standard Chartered  

Product: Standard Chartered KTA Online, Standard Chartered KTA Reguler


#3 Free Early Payment Fee Loan (KTA Bebas Bayar Di Awal)

For some personal loans there are penalties when a debtor makes an early payment before the tenure. However, for this type of loan, you’ll not be charged with penalty fees for doing that.  

This loan is suitable for those who apply for purpose of growing, and expanding their business, particularly if the impact of the loan bring revenue or profit.

Now, let’s see some benefits of this personal loan.

  • Obtain loan in a large amount.
  • Free early payment fee.
  • Tenure is flexible from 3 up to 5 years.
  • Competitive interest rate.
  • Application process is easy, fast, and can be done online.
  • Additional fee doesn’t burden the applicant.


Now let’s take a look at the banks that provide this loan.


#1 ANZ         

Product: ANZ MoneyLine


#2 BNP         

Product: Bank BNP KTA General, Bank BNP KTA Payroll, Bank BNP KTA Scheme Khusus


#3 BNI           

Product: BNI Cerdas, BNI Fleksi, BNI Fleksi Payroll


#4 QNB Indonesia 

Product: QNB Personal Loan


#5 Bank Amar         

Product: Tunaiku Bank Amar


#4 Payroll Personal Loan (KTA Payroll)

Payroll personal loan is a loan where a customer can transfer the income to a bank. This way of payment convinces the bank that you are able to pay down your credit for the bank know your income each month.

The reason why this loan is popular because its interest rate is relatively smaller than other regular personal loans.

So what are the benefits of payroll personal loan? Here are some of them.

  • Application requirements are easier.
  • Smaller interest rate.
  • Loan liquidation is faster than the general personal loans.


To find this product you can choose one of these following banks.


#1 Bank Mandiri     

Product: Bank Mandiri KTA Payroll


#2 BCA         

Product: KTA BCA Personal Loan Payroll


#3 BNI           

Product: BNI Fleksi Payroll


#4 BNP         

Product: Bank BNP KTA Payroll


#5 Maybank

Product: Maybank KTA Payroll


#6 Bank Permata   

Product: PermataKTA Payroll, PermataKTA Speed Payroll

Menghitung Simulasi Utang dengan Aplikasi Finansialku 02 Kalkulator Kredit- Finansialku

[Read Also: A Financial Planning For You And Your Family Well-Being]


#5 Personal Loan without A Credit Card (KTA Tanpa Kartu Kredit)

Some personal loan ask for a credit card as one of its requirements. But if you don’t want to use a credit card, you can apply for it without a credit card.

This product allows the applicant to obtain loan without having to have a credit card or other credit histories. Therefore, this type of loan fits for those who has no credit history but need a large amount of loan.

The requirement to apply for personal loan without a credit card is similar to regular personal loan. However, to anticipate a bad credit, a bank charges the interest rate a little higher than a regular personal loan.

The benefits customer obtain from this loan product are:

  • Variety of ceiling credit with a large amount.
  • Requires no credit card to apply.
  • Loan liquidation is faster if all requirements are met.
  • Competitive interest rate.
  • Requirements for application are easy.
  • Short, and long tenures are available.


Bank that offers this product is Bank Amar that provides Tunaiku Bank Amar as its personal loan without credit card product.


Use Personal Loan Wisely

Now with all the pros, and cons of personal loan explained, you can consider wisely before decide to use it.

Though there are many personal loan types, comparing their benefits, downsides, and rules from the bank, help choose the product that serves best your financial need, and prevent you from getting into a debt cycle.


(Disclaimer: the products mentioned in this article are aimed for education only, and not for other purposes)


Now, have you notice the type of personal loan that fits best your financial needs? Or are you still doubt of taking one? If that’s the case, then don’t hesitate to contact one of our financial planners to help you.

And don’t forget to share this article also with those who’re looking for a personal loan.


Image Credit:

  • KTA –