Requirement of Credit Proposal to the Bank

Now, we will talk about common terms apply for credit in the bank. Like when going to open a savings account at a bank, you will be asked to submit copies of identity as ID cards, driver's license or passport. You are also asked to fill out a form that contains the data to opening your personal savings account. The goal is that the Bank has the right information, so it can identify yourself as a legitimate and entitled to make transactions from your account.

That is if you want to save money in the bank. Now what if you want to borrow money from banks? Here, the banks who lend funds as a party called the lender and the borrower of funds from the bank called the debtor. The requirements for applying for credit/loans in the bank is simpler than one might expect. Even the condition is actually quite easy. But of course, there is more data that must be completed than if you open a savings account. It is natural. Either the bank or you certainly will take a care and would not just lend money to any person if it is not certain that your money will be returned. It is different if you give it as a donation or gift.

To judge whether the candidate is given a credit worthy borrowers, then the bank must obtain the correct and accurate information, such as the character of the debtor, its current fund, the effect of current economic conditions on borrowers income, collateral was filed, and much more. Approximately the same as you, any bank in the credit application that receives incoming proposals shall implement the principle of carefulness in lending money. This is required by laws regulating the banking sector in worldwide.

Remember that for every penny that is channeled back into the community by the bank is owned by the community as well. For each customer funds in the bank, the bank promised to return it to customers at any time with interest. Therefore, banks are always doing various kinds of credit analysis to assess the credit worthiness will be given to prospective customers. Anyone can apply for credit/loans to banks as long as eligible. In general, bank debtors divided into two major categories, namely individual debtor and the debtor company (again, the debtor is the party that borrows money from a bank).

Here is a bank requirement of each class of debtors.

First is Individual Debtor. Individual debtors consist of a variety of professional backgrounds, such as doctors, artists, civil servants, fashion designers, architects, private employees, vendors, and others. Every profession has its own signature by the bank divided into three categories, namely entrepreneurs, employees, and professionals.

The requirements requested for each individual debtor generally are :
1. Copy of ID cards or passport.
2. Copy of marriage certificate (for those who are married). Banks ask for a copy of marriage certificate for borrowers who are married is to know whether the secured property is a property with husband and wife or not, so both the wife or husband are consent and the debtor may be asked to take responsibility for the property as collateral to the bank follows a number of debts.
3. Copy of family card. The same as number 2 above and also to determine whether the prospective borrower also bear the cost of living other than himself.
4. Copy of deposit account in Bank anywhere between 6 to 3 last month. This data is required the Bank to conduct financial analysis prospective debtors, in order to measure how much income debtors who can set aside to pay the monthly loan installment.
5. Copy of monthly paycheck and work certificate from the company. This requirement is only applicable to prospective borrowers who work in a company, government or private. The aim is to ensure that prospective borrowers are working there and have a steady income every month.


The second is Entity Debtor or Business/Company Debtor. It includes companies such as CV, PT, firms, and others. The requirements are :
1. Copy of ID Card of the members of the management (directors & commissioners)
2. Copy of Taxpayer Main Number
3. Copy of Business License Trade
4. Copy of Company of the Notary Deed
5. Copy of Company Registration
6. Copy of accounts / current accounts or savings accounts at any bank during the six until the last three months.
7. Financial data, such as financial balance sheets, income statements, records daily sales & purchases, and other accounting data.
8. Points 1 to 5 will be used by banks to check the validity / legality of what was stated in the deed of establishment to line of business, all licenses and letters to the state tax liability.

Point 6 and 7 used by the bank to perform various financial analysis of prospective debtors. The ability of debtors to repay their debts will be analyzed from various sides, such as the ability to repay short-term debt, management ability and effectiveness in managing its sources, the ability to make a profit, and so forth.

Warranty

When proposing a loan to the bank, usually you will be asked to pledge one of your own property to the bank so that if you are not able to repay the loan, the bank will confiscate your property guaranteed in exchange for the money you borrow. Obviously the value of collateral items must be greater than or at least be equal to the value of money you borrow. Guarantees/collateral requested by the Bank for Housing Credit is usually a house that will be purchased. On automotive loans, the car that will be bought is commonly used as collateral. Meanwhile for the Business Credit and Multipurpose Credit, the requested assurance is usually more varied, such as land, houses, shop-houses, apartments, vehicles, factories and others.

For assessing whether the proposed collateral eligible for collateral, the Bank will assess the proposed collateral back. the Bank usually has an assessment team in assessing their own warranties, although sometimes the banks are also occasionally use an outside team of security assessor.