What Is The Credit Interest Rate? This Is Understanding, Type, And Benefit In The Economy

Credit interest illustration (Betweens)

YOGYAKARTA When applying for loans or credit in banks, the term credit interest rate appears. The term needs to be known by borrowers so that they can do calculations so they don't get stuck in high interest rates. Then what is the credit interest rate?

In general, credit interest rates are prices that must be paid by debtors or borrowers to banks that provide loans. Meanwhile, from the bank's point of view, lending rates are selling prices charged by customers who apply for loans.

Credit interest rates are also a source of profit for banks or lenders such as official online loans registered with the OJK. So it is natural that banks provide a larger loan interest rate compared to deposit interest rates or savings.

It should be noted that the credit interest rate is different from the prime lending rate (SBDK). SBDK is a reference used as the basis for determining the loan interest rate that will be charged by banks to customers who apply for loans.

That way it can be said that the amount of credit interest rates and the basic lending rate are different.

There are several types of credit interest rates that are based on their nature and calculation, namely as follows.

Quoted from your attitudeuang.ojk.go.id, there are two properties of interest rates, namely fixed and floating.

Interest rates are fixed because the interest to be paid does not change for a certain period of time. Usually the time is based on the maturity time of credit. For example, fixed interest is on subsidized mortgages, or on vehicle credit interest which is the same amount until the credit time expires.

Meanwhile, the interest rate is changing in nature and is based on interest rates in the market. This means that if interest on the market increases, credit interest will also increase, and vice versa. For example, certain KPR interest rates for certain periods, which in the first year the interest rate can remain, but interest rates can increase or decrease depending on market interest.

There are three types of interest rates that are based on their calculations, namely flat, effective, and postacity. Flat interest rates are interest rates calculated based on the principal amount of the initial loan divided into credit tenors. Calculation of flat interest rates is simpler and easier to calculate so that it is often used in the process of borrowing cellphone loans, pot loans, and so on.

An effective interest rate is the figure to be paid, which is calculated based on the remaining amount of loan principal per month taking into account the debt disbursement that has been paid. The smaller the principal, the smaller the interest rate that must be paid.

Meanwhile, the postacity interest rate is a combination of flat calculations with effective interest rates. This calculation method regulates the amount of principal installments in the amount of interest installments that must be paid per month.

Credit interest rates that must be paid by borrowers have benefits both directly and indirectly. Some of the benefits are as follows.

That's information related to what credit interest rates are. To get other interesting information, visit VOI.ID.