What Is Credit Repayment Penalty? Know Understanding And Types Of Loans Potentially Fined

YOGYAKARTA Paying off loans faster can make you free from the installment burden that includes each month. However, before paying off, you have to pay a penalty fee that must be paid.

The reason is, the penalty fee for credit repayment is quite draining the pocket, especially if the remaining principal loan is still worth hundreds of millions.

Well, in this article, it will be discussed what is a credit repayment penalty and the type of loan that has the potential to be penalized.

A credit repayr is a sanction in the form of imposition of costs charged by banks (creditors) to debtors because they pay off installments before their time.

In loan products, banks generally impose sanctions when customers make partial repayments or all loan balances before the scheduled maturity date.

Penalti dijatukan karena keuntungan bank berkuran ketika debitur membayar pinjaman luar tempo yang ditetapkan.

For example, for Home Ownership Credit (KPR) products with a period of 15 years, banks can pocket hundreds of millions of rupiah. However, if the debtor repays the loan faster, the bank's profits will decrease.

Therefore, debtors will be subject to a penalty fine as a form of compensation for the loss of these profits.

Regarding the amount of costs, the amount varies depending on the bank and the type of loan submitted.

Credit Repayment Rules Accelerated

The accelerated credit repayment rules are regulated in the Circular Letter of the Financial Services Authority Number 13/SEOJK.07/2014 concerning the Baku Agreement.

The rule is stated in Klausula in the Baku Agreement, where it is explained that Financial Services Business Actors (PUJK) in making agreements with debtors must fulfill balance, justice, and fairness.

Related to this, the draft formulation and agreement provisions made by PUJK should not be burdensome to the party, namely the debtor and must be regulated as clearly as possible.

Types Of Loans That Have The Potential To Be Penalty

Summarized from various sources, Monday, April 17, 2023, the following are the types of loans that could potentially be penalized if the debtor paid them off early.

The majority of banks will impose a penalty if customers pay off loans faster, both entirely and partially.

The size of the penalty costs varies, depending on the bank that gives credit. Usually, the fine is 1 percent of the remaining principal debt.

This policy can affect customers whether they will pay off installments or not. Therefore, if there is a possibility of paying off mortgages faster, ask more clearly about the penalty fine.

The type of loan that has the potential to be awarded the next penalty is car credit. The amount is also different depending on the bank where to apply.

Third, there is a business capital loan. This is one of the loan products that will be subject to a penalty fee for customers who repay loans faster. The repayment fee is around 1-5 percent, with the following formula:

The remaining principal loan x percentage penalty + administrative costs repayment + fine-delay (if any).

Loans Without Agunan imposed penalties, but many popular online lenders offered loans without a penalty in advance.

Usually, the fine is around 5-6 percent of the remaining bill to be paid.

That's what information about what credit repayment penalties is. To get other interesting news, keep reading VOI.ID.