Post on 29-Mar-2015
CREDIT
Definition :credit is money or bill application or
similar forms, base assent or deal borrows to borrow among bank with
clients, the borrower takes responsibility to pay due the given
time period along with interest(UU No. 10/1988)
Element SubjectEconomic value
the economic values of goods or fund that changing hands from the first party to other party
Trustthe lender confidential that approved credit will be accepted proximately
Timea period or a given time period restricting among credit and it redemption
Rewardreward or interest on credit application
Riskthe effect emerges from the beginning of approved credit until redemption such as the effort risk, geographical risk, inflation risk, politics risk etc.
Important Terminologies
Plafon/Credit Quotamaximal bounds of credit that
approved by bank, utilized by debtor
Unused Plafoncredit value has not be used by debtor
Outstanding Creditposition of total credit has already
be used by debtor at the time
Loan Collectabilityunsecured quality classification
based on particular criterion according to BI rule
Before application of credit is accomplished, bank has
to appraise :CharacterCapacityCapital
CollateralCondition
that is done by bank to analyse application of credit, are :
Character ApproachReplayment Approach
Collateral ApproachFeasibility Approach
Development Approach
Credit Application Process
General Type of Credit can be classified based on:
The effect of purpose :
1. Productive /Commercial Credit
fund requirement as an effort that gives value addition, obtains profit, or carries out activities:
- Trading
- Production/Exploitation
- Investation/Exploration
2. Consumptive Credit
utilized to fund consumption requirement
for example :buying private car, buying
private house
According to Duration
1. Short-term Credit loan with maximum duration 1 (one) year
2. Long-term Creditloan with duration more than 1 (one) year
According to way to thawed credit1. Afbetaling Credit2. Revolving Credit3. Contingency Financing
Interest Count1. With annuity
M : Credit quota
n : Duration
i : Interest/month
2. Flat installment (loan with fixed installments )
i = effective interest/month
n = duration