(MENAFNEditorial)
JAKARTA February 4 2015 – Several banks plan to lower the interest rate of mortgage loan up to below 9% in order to boost the loan distribution in this sector.
President Director of Bank BCA Jahja Setiaatmadja ensured the interest rate lowering of mortgage loan (KPR) would be made this month. “In February it would reach below 9%” said Jahja to Indonesia Business Daily Tuesday (2/3/2015).
The KPR business he said needs to be boosted since the sector is able to spur the growth of other segments.
“I would argue if KPR is considered as consumptive goods while it is not. In Indonesia building houses is still classified as labor intensive. This is a business which triggers all sectors” said Jahja.
He also mentioned that through the KPR interest lowering the customers would get fixed interest rate up to 5 years.
Previously Consumer Director of Bank BCA Henry Koenafi informed that the company’s mortgage loan business was weakening due to the tight liquidity.
This year the BBCA-coded company is targeting KPR growth of 8%. “The KPR as developed eyes more the medium type. The sales would probably rise by around IDR4 trillion” said Henry.
Based on Indonesia Business Daily data Bank BCA had lowered KPR interest rate at 25 basis points (bps) in September 2014. With the lowering the demand of new KPR in BBCA rose by 20%.
According to the official website of Bank BCA the company offers prime lending rate (SBDK) for KPR of 10.5%.
Harsh Mardhan Modi Analyst of J.P. Morgan said the KPR interest lowering of Bank BCA at 25-50 bps to 9.25% may raise the mortgage loan business which was stagnant last year.
Based on a research as published recently Modi projects that BBCA would book credit growth at 13.8% in 2015 higher than the prediction at 10.3% in 2014. READ MORE..
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