Armfalcon.com, Having a house is certainly a matter of pride for everyone. Ownership of a house is of course followed by legality that is recognized by the state in the form of girik, AJB, or in the form of SHM. This Freehold Certificate has the highest value and is of great value to the owner.
Having SHM will bring many benefits. One of them is that it can be used as an asset that can be sold, pledged as collateral, or pawn a house certificate, loaned and given as a gift.
With a house certificate one can get a loan from a financial institution or finance company. But never pawn individual house certificates, because they do not have government guarantees and are registered with the OJK, so there is a risk of losing the certificate.
The biggest advantage of owning land or a house with SHM status is that it has an unlimited duration and continues as long as the owner is still alive. When the owner dies, SHM can be inherited from generation to generation according to law.
Therefore, the main difference between SHM and other types of certification is its ability to be used for life. Unlike the Industrial Use Law (HGB) or Business Use Rights (HGU) which are limited to 60 years.
In addition, the advantage of having a certificate is that it can be used as collateral when you need a loan from a financial institution such as a bank or finance company.
It was recorded that in 2018, the acquisition of loans using land certificates at banks reached IDR 91 billion, and in 2019 it increased to IDR 109 billion. Approval of a housing permit as a condition for applying for a loan from a bank is accepted and regulated by law.
However, the purpose of the credit secured by the title certificate must be for productive purposes. This is in line with the order issued by Indonesian President Joko Widodo. Over the years, he has always informed the public that before approving land and bank documents, don’t forget to do the calculations properly.
In particular, don’t get a loan from a bank that guarantees a house certificate, but the money is used to buy a car.
Four types of credit with home certificates
In Indonesia, many financial institutions or finance companies offer loans that are backed by collateral for house certificates. First, choose a trusted financial institution or finance company, such as BFI Finance.
BFI Finance has been registered with the OJK so that security is guaranteed. In addition to an easy process and fast disbursement, BFI Finance also provides competitive interest rates so that it is not a burden for its customers to repay loans.
Reporting from various sources, here are four types of loans guaranteed by house certificates that you can get, including:
1. Multipurpose credit
According to the definition in the Financial Services Authority Regulation number 05 of 2015, it is said that multipurpose credit is money for purchasing goods or services that the debtor needs to use/consume and not for business (productive work), within the agreed time.
Various credit facilities are products offered by many banks, such as Bank Mandiri, Bank BRI, Bank BCA and Bank Danamon. In the process of applying for this multipurpose loan, capital is only needed in the form of a contract or agreement.
The securities in question are land/shop/house certificates, car and motorcycle ownership certificates such as STNK and BPKB, stocks, deposits, securities, employee selection certificates (SK) and gold.
In practice, all types of collateral can be combined to obtain the loan amount required for the customer’s needs. For example, BPKB and house certificates are guaranteed large loans.
According to the law, the investment amount is kept a maximum of 40 percent of the client’s income. The loan amount may not exceed 70 percent of the contract value, with a short tenor of one year to 5 years plus interest starting from 0.9 percent per month.
2. Pawn shops
One fast place to get a loan is a mortgage. At the pawn shop, you can apply for a house certificate as collateral. At Pegadaian, when you pawn a house certificate, you will get a sharia-based loan that is issued to individuals with fixed/short-term income, entrepreneurs and farmers with guaranteed land certificates at the SHM level and HGB certificates.
Advantages of applying for a certificate loan real estate with Pawnshops are:
● Loans start from IDR 100 million-IDR 200 million
● Complies with Sharia law
● The application process is simple
● Payment can be made at any time
It is not enough just to have SHM and HGB and fulfill these requirements, what is clear is that the loan documents at the Pawnshop must meet the requirements regarding the supporting documents for the certificate of their house.
That is, if the guarantee is in the form of productive land (fields, farms or livestock), then it will be productive land that is not found in land structures that are difficult to reach, the condition of the land is not obstructed/problematic, the condition of the land is not a guarantee for a loan/non-payment by the attorney handover to others.
The location of the land may be different from the customer’s residence as long as it is under the supervision of the same local authority.
3. Non-banking institutions
Almost all non-banking companies in Indonesia that are registered with the OJK, such as BFI Finance, ACC and Adira, offer loan products if they provide support for house certificates. By providing a guarantee for a house certificate, the amount of the loan obtained can also be large, starting from IDR 70 million.
The requirements for applying for a loan obtained through a certificate of ownership from a non-banking company include:
● Indonesian citizen
● Age 21-60 years and marital status single, married and divorced
● Status of residence own home, spouse, family, annual contract
● Job profession:
– Employee (minimum permanent 2 years)
– Entrepreneurship for at least 2 years
– It is unacceptable if the type of business/profession violates the law
Cooperatives are also a way to get a loan application guaranteed by a house certificate. For example in Savings and Loans Cooperatives which provide capital to entrepreneurs, MSME entrepreneurs to use as working capital and business capital with movable and immovable goods.
The loan application and approval process must have simple elements, providing fast and competitive loan services. But the condition is that it is mandatory to become a cooperative member, at least 21 years old or married and over 55 years old at the end of the payment period. For KPR, the minimum credit given is IDR 1 million and more than IDR 25 million.
Documents needed for a loan secured by a house certificate
Apart from the certificate which will be held as collateral, there are also other documents needed as supporting attachments. Among others are:
● Photocopy of KTP (husband and wife)
● Photocopy of Family Card
● Photocopy of Marriage Certificate (if married)
● Photocopy of personal NPWP/SPT PPH 21
● Original of the applicant’s latest Salary Slip & Husband/Wife and/or Original Statement of other valid income
● Photocopy of Last 3 Months Current Account/Giro/Savings Account
● Original work certificate
● Photocopy of Practice/Profession Permit
● and others.