5 Differences Between KUR And KUM, Understand Credit Schemes And The Augnanya Requirements

YOGYAKARTA - The People's Business Credit Program (KUR) can be utilized by MSMEs who need funds for their capital or business development. In addition to the government's funding program, there is also Micro Business Credit (KUM) intended for MSME actors. So what are the differences between KUR and KUM?

KUR and KUM are business capital distribution programs for MSME players. Both are presented as financial solutions for MSMEs who are experiencing funding difficulties. Many actors have applied for both types of credit to run their business.

With KUR and KUM, many business owners feel helped in capital. Although both as types of credit targeting MSMEs, there are several differences in KUR and KUM that are important to understand before submitting them.

MSMEs really need credit or loan programs, especially for those who have just started or need additional funds. Business actors are expected to actively take advantage of the KUR and KUM programs to develop their business.

But before that, you need to understand the differences between KUR and KUM as a credit service for MSMEs:

The first difference between KUR and KUM is in the implementing bank. KUR is a program provided by the government and managed by state-owned banks or state-owned banks. The target for implementing KUR aimed at the state-owned bank is up to IDR 20 trillion per year.

Meanwhile, KUM is presented by each bank, both private and state-owned banks that provide these products and services. The realization target is also adjusted to the policies of each bank.

Although it is a government program, KUR funds do not come from the government, but from state-owned banks that have been established. In this program, the government through two institutions, namely PT Jamkrindo and PT Askrindo, acts as guarantor in the distribution of KUR to MSME actors.

Meanwhile, KUM is not a government program, so the government is not involved in the mechanism or distribution of funds. The government also does not provide guarantees for KUM distributed to MSME actors.

KUR and KUM loans impose different limits that are adjusted to their respective bank policies. KUR provides 3 credit schemes, namely:

The KUM program only serves one scheme, namely a minimum credit limit of IDR 5 million and a maximum of IDR 500 million to IDR 100 million per year. The interest amount charged tends to be higher by around 1-2 percent per month or 12 percent to 24 percent per year.

The government does not stipulate collateral requirements for MSMEs who wish to apply for KUR. However, in practice, the implementing bank stipulates the provisions for the inclusion of collateral for MSMEs that apply for KUR.

For KUR submission with a limit of IDR 5 million, the bank does not require collateral in the form of physical assets. So the MSME business that is carried out is considered sufficient as collateral to apply for the credit.

However, in submitting KUR with a limit of more than Rp. 20 million, physical asset guarantees such as proof of Motor Vehicle Ownership (BPKB) or land or house certificates are needed. Meanwhile, the application for a KUM of any amount must still be accompanied by collateral.

Both KUR and KUM set business requirements that are deemed appropriate but do not meet the criteria in terms of collateral. A decent business is a business that produces products or services with added value for the perpetrators, producing profits that allow credit payments. However, it does not meet the requirements to obtain credit facilities from banks in general.

In KUR, MSME actors are required to have a business that has been running for at least 6 months. This provision can be proven through a Business Certificate from the village or sub-district.

Meanwhile, KUM requires businesses to be at least 2 years old for MSME actors. In addition, MSME players who apply for credit above IDR 50 million are required to attach a Taxpayer Identification Number (NPWP).

Such are the reviews of differences in KUR and KUM that MSME actors need to understand before applying for credit. To apply for a loan fund, you should choose programs that suit your MSME needs. Also read the expanded access to KUR distribution for disabilities and women.

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