List Of Banks That Can Give 0 Percent DP Of Motor Vehicle Loans

Illustration of car loan (Photo by courtesy)

JAKARTA - Support from Bank Indonesia (BI) to spur credit is proved by the policy of easing down payment (DP) of up to 0 percent for the motor vehicle loan segment.

In this scheme, the central bank requires banking institutions that have a non-performing loan (NPL) ratio of below 5 percent to provide this facility to customers.

Meanwhile, banks with NPLs above 5 percent may only provide the same facilities to consumers with a maximum DP discount range of 90 percent to 95 percent. BI released this regulation after the Board of Governors Meeting (RDG) which was held in the middle of this week.

When referring to the direction of the monetary authority, banks in the country that are most likely to provide down payment facilities of up to 0 percent based on the NPL ratio are BRI (2.99 percent), BNI (4.25 percent), Bank Mandiri (3, 29 percent), BTN (4.37 percent), BCA (1.79 percent).

Then, Bank Panin (3.05 percent), Bank CIMB Niaga (3.89 percent), Bank Danamon (2.84 percent), and Bank Permata (3.78 percent).

"Bank Indonesia encourages provisions for down payments for motor vehicle credit/financing to be at least 0 percent for all types of new motorized vehicles, to encourage credit growth in the automotive sector while still observing the principles of prudence and risk management, effective March 1, 2021, to December 31, 2021,” said BI Governor Perry Warjiyo.

The central bank itself is known to have cut its projection for bank credit growth in 2021 from the previous 7-9 percent to 5-7 percent.

This conservative attitude is based on the continued weak demand for credit in the last two months as reflected in a contraction in January 2021 of 1.92 percent yoy compared to a contraction of 2.41 percent yoy in December 2020.