Hello Young Men Who Want To Own A House, KPR BTN Interest Decreased By 2.7 Percent!

New house illustration. (Photo: By courtesy)

JAKARTA - PT Bank Tabungan Negara Tbk. (BTN) decided to reduce lending rates to 270 basis points (bps). This strategic step applies to all financing segments, namely corporate loans, retail loans and consumer loans.

President Director of BTN Nixon LP Napitupulu said the policy taken by the company was a response to a directive from Bank Indonesia (BI) which cut the benchmark interest rate to 3.5 percent in February.

"We hope that the lowering of BTN's credit interest can boost demand for housing, which is our mainstay product," he said as quoted by Kontan recently.

According to Nixon, the housing sector is considered to have a multiplier effect up to 174 other sectors. For this reason, BTN as a bank specializing in property is considered to have a positive impact on interest adjustments as determined by BI.

According to Nixon's records, the mortgage loan (KPR) discount is the largest with 270 bps.

Followed by the corporate segment through the prime lending rate (SBDK), which fell 190 bps from 9.9 percent in December 2020 to 8 percent in February 2021.

Then, in the retail credit segment it fell 165 bps from 9.9 percent in December 2020 to 8.25 percent in February 2021.

Then, for consumption credit, the prime lending rate decreased by 270 bps from 9.95 percent in December 2020 to 7.25 percent in February 2021.

Meanwhile, non-mortgage prime lending rates were also cut by 250 bps from 11.25 percent in December 2020 to 8.75 percent in February 2021.

Separately, the Coordinating Minister for the Economy Airlangga Hartarto asked banking industry players to immediately transmit the decline in BI's interest rate.

This is because the readiness of banks in cutting interest rates is considered to be able to encourage demand for credit, which has been contracting due to the impact of the pandemic.

"We will communicate to banks to immediately apply the BI directive which has lowered the benchmark interest rate and lending rate," he said.

To note, the average bank loan interest is currently still at around 10 percent. This is quite a contrast to the benchmark released by the monetary authority, which is 3.5 percent.