One reason why people use Multipurpose Loans is because they can get a lot of money for various purposes without having to sell their valuable assets. For example, you are in need of funds of $ 1 billion to enlarge your business and want to make a house as a land income from these problems.
Related to this, there are two things that can be done. First, sell the house, or make it a loan guarantee. If you do the first thing, then what happens is you will lose the house. Second, make it a loan guarantee, then after the loan is repaid, the house will return to you.
If you look at what happened next, you might take the second solution. Why? Because you don’t have to lose your house to get the funds needed. Then, what if we can’t afford it? That’s another matter, as long as the house is still private property. The issue of being able to pay off or not, it all depends on you as a debtor. Can you arrange finances to repay debt or not. Is not it?
Advantages of multipurpose credit
There are several advantages of Multipurpose Credit that you can consider before taking it. This is it:
1. High Loan Limit, Can Be Up to Billions
As mentioned above, one of the benefits of Multipurpose Loans is having a high loan limit. How come? One reason is because he needs collateral for assets as a condition. That way, the risk of banks to lose money due to customers experiencing default will be smaller than Unsecured Loans.
For example, you want to borrow funds of $ 1 billion to develop a business. You can apply for a House Certificate or a loan guarantee that is the same value as the request for funds as collateral to the bank. If you can do that, there is a possibility that the bank will want to disburse the funds needed.
2. Longer Tenure Period, Can Be More Than 5 Years
With a high loan limit, it is possible that your ability to pay off debt will be longer. With that problem, now a number of banks provide Multipurpose Credit services with tenors of up to 10 years, even more. This second advantage contrasts with the Unsecured Loans, which on average only provide repayment time of up to 3 years.
However, you must remember, for any period of tenor. If it can’t be paid off, it’s useless.
3. Use More Flexible, Can Be For Consumption and Other
Another advantage of multipurpose credit is that it can be used for various purposes. Unlike Unsecured Loans, which can sometimes only be used for consumptive purposes. Multipurpose Loans can be used for a variety of purposes, from consumptive to business. Understandably, the name alone is Multipurpose, surely its use can be tailored to your needs.
With this advantage, of course, many people become interested in using Multipurpose Loans. Whatever the purpose of use, provided you have the necessary guarantees. Please submit to the bank through us.
Multipurpose Credit Deficiency
Here it is, the shortcomings of a multipurpose credit that you should consider before taking it:
1. No Guarantee, Can Not Borrow
Yes, one of the reasons why people fail to use Multipurpose Loans is because they must have assets to be pledged to the bank. With your condition if you do not have assets, of course the desire to apply for this loan is not realistic. If that’s the case, maybe you can use Unsecured Loans as another solution.
2. Failure to Pay, Asset Drift
Well, here it is another problem of Multipurpose Credit. Where, you are at risk of losing assets due to confiscation if you experience default. If you don’t want it to happen, what you have to do is manage your borrowed money as well as possible.
In addition, arrange the problem of KMG debt repayments into the monthly expenditure breakdown. So there is no debt that is in arrears and piles up.
3. The Submission Process Is Longer Than KTA
Because it requires a home or car asset as collateral for a loan, of course the application process will take longer. Because the bank needs time to assess whether the proposed asset is in accordance with the requested value. If not, usually they will ask you to provide other assets until the difference between the requested fund and the collateral value is considered appropriate.
Interested in Using Multipurpose Loans?
Well, I was a little acquainted with Multipurpose Loans (KMG), as well as knowing the advantages and disadvantages. Now the question is, do you want to use it or not?
For this question, there is an answer yourself that can be used as a guide before submitting the application. Namely, depending on the urgency and value required. If the value is large and you have collateral, then you can use KMG. But if on the contrary, just use KTA as your funding solution.