When going to open a savings account at a bank, you will be asked to submit copies of identity such as ID cards, driver’s license, or passport. You are also asked to fill out a form that contains data for opening a personal account. The goal is that the Bank has the right information, so as to identify yourself as a legitimate and entitled to perform transactions from your account.
Now what if you want to borrow money from banks? Here, banks lend funds as the party called the creditors and those who borrow funds from the bank called a debtors.

Requirements applying for loans in banks is not as complicated as 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. It is fair, as you will of course cautious and unwilling to lend money away 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.

Well, to assess whether the prospective debtor is given proper credit, the bank must obtain the correct and accurate information, such as the character of the debtor, its own funds at this time, the influence of current economic conditions on the debtor’s income, the proposed guarantee, and much more. The principle of caution in lending money is the bank receives credit application and incoming proposals implement. If the application is approve, the customers promise to return money to the bank at any time with interest. Because of that the bank always perform a wide range of credit analysis to assess the credit worthiness that will be given to prospective customers.

Anyone can apply for credit to banks as long as it meets the requirements. In general, the bank divides debtors into two major categories, namely an individual debtor and the company debtor.

The following are the requirements demanded of banks for each class of debtors.

INDIVIDUAL DEBTOR
Individual debtors consists of various professional backgrounds. Doctors, artists, civil servants, fashion designers, architects, private sector employees, merchants, and others. Every professional has its own peculiar characteristics which distinguish banks into three categories, namely entrepreneurs, employees, and professionals.

Requirements requested for each individual debtor are:
1. Copy of identity (ID card, driver’s license, or passport)
2. Copy of marriage certificate (for those who are married)
Banks ask for a copy of marriage certificate for a married debtor is to find out whether the insured property is community property of husband and wife or not, so either the wife or husband may be asked for co-responsible for the property as collateral to the bank following with their debts.
3. Copy of family card.
Same as number 2 above and also to determine whether a prospective debtor also bear the cost of living other than himself.
4. Copy current / checking account at any bank between 6 to last 3 months.
This data is required the Bank to conduct financial analysis of prospective debtors, so it can measure how much income the debtor that can be set aside to pay the monthly loan installment.
5. Copy of paycheck and work certificate from the company.
This provision only applied to a prospective debtor who works in a company, government or private. The goal is to ensure that the prospective debtor was working there and have a steady income every month.

BUSINESS / COMPANY DEBTOR
Requirements demanded, among others:
1. Copy of identity of the managers of the company (directors & commissioners)
2. Copy of TIN (Taxpayer Identification Number)
3. Copy of Business License
4. Copy of Articles of the Company from Notary
5. Copy of Company List

Points number 1 to 5 will be used by banks to check the validity / legality of what is listed on the deed to the field of business.

6. Copy of checking account / current account or savings book at any bank for 6 to last 3 months.

7. Other financial data, such as balance sheet, income statement, record daily sales & purchases, and other accounting data.

Point number 6 and 7 used by the Bank to perform a variety of financial analysis of prospective debtors. Debtor’s ability to pay back its debts will be analyzed from various aspects, such as: the ability to repay short term debt, management ability and effectiveness in managing the sources it has, the ability to make a profit, and so on.

Collateral
When applying for a loan to the bank, usually you will be asked to pledge one of your own property to the bank so if you are not able to repay the loan, the bank will confiscate your property in exchange for the money you borrow. Surely the value of the collateral must be greater than or at least be equal to the value of money you borrow. Guarantee Requested by the Bank for Housing Loan is usually a home that will be purchased. Loans on Cars, then the car will be purchased that is commonly used as collateral.

As for the Credit Business and Multipurpose Loan, the requested guarantees are usually more varied, such as land, houses, shops, apartments, vehicles, factories and others.

To assess whether the proposed collateral eligible, the Bank will assess the proposed re-collateral, the Bank usually has its own assessment team in assessing the collateral, although sometimes also occasionally use from the external assessment team.

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