Loan To Value (LTV)

Is a basis or method used to determine how big a loan that can be given to the debtor based on the assets used as collateral.

Individual micro banks determine their own micro-scale LTV, however, the outline can be described as follows:

1. Land ownership certificate: LTV = max. 80%
2. Letters cars / BPKB: LTV = 60%
3. Deposit: Max. 100%

For example, if the land price according to market (total) is Rp. 100.000.000, - then the maximum loan that can be given is Rp. 80000000, -. This refers to the basis of determining LTV for a certificate of land ownership is 80%.

However, a bank does not only consider the Loan To Value (LTV) in determining the large loans will be provided, but there are many other factors such as the capacity of business, business type, character and other prospective customers