Differences In Productive And Consumptive Loan Interests, Must Know Before Applying For Credit

Illustration (Photo: dock. Antara)

YOGYAKARTA The difference in productive and consumptive loan interest can be seen from the amount of repayment costs set by the online loan platform (pinjol) to customers for the loans they have obtained.

Well, in this article, the difference between productive and consumptive loan interest will be discussed. However, before that, first, you will know what product debt is and consumptive debt.

Productive Debt Is

Summarized from various sources, productive debt is the type of debt that will be used for productive purposes. This means that the money borrowed will be used for activities that increase income. It is hoped that this amount of money will be much more so that it can be used to pay installments and can still be used to meet creditors' needs.

In general, productive debt is divided into three types, including:

Every banking institution that provides debt, may have a different loan name for the form of credit or customer productive debt.

In essence, productive debt is a debt that is used to increase income, it can be used to buy goods or assets whose value can increase or business capital.

However, the amount of productive debt must still be controlled so as not to interfere with your business cash flow.

Consumptive Debt Is

Consumptive debt is a loan used to buy goods consumed or used, where one day their value will drop.

Consumptive debt can provide financial burdens to a person. This is because consumptive debt is not used to increase income.

Productive loan interest costs lower than consumptive loan interest. This is based on the amount of online loan interest set by the Indonesian Joint Funding Fintech Association (AFPI).

AFPI General Chairperson Entjik S. Djafar said the amount of repayment fee for consumptive debt was 0.4 percent per day. Consumptive loan costs mean the usual amount of repayment for loans with a tenor of less than 30 days.

"The cash loan loan is mostly 0.4 percent for a maximum period of 1 month," said Djafar in a press conference, Friday, October 6, 2023.

Meanwhile, the cost of debt for the productive sector ranges from 0.03 to 0.06 percent per harti. If calculated, this amount is equivalent to 12 to 24 percent per year.

AFPI has gone through various considerations. The results of research by the Financial Services Authority (OJK) in 2021 resulted in an ideal interest of 0.3 percent to 0.46 percent per day, including costs.

OJK underlined that there are no multipurpose or consumptive loans with long tenors. For example 1 year, which is then charged with 0.4 percent interest per day or 146 percent per year.

That's information about the differences in productive and consumptive loan interest. Get news updates of other options only on VOI.ID.