Automotive Credit Risk So Great?

Automotive credit risk so great?

Bank Indonesia is concerned that expressed the Automotive Finance (size) of the company’s paid-loan increase. To this end, the central bank lending to banks to be more cautious to multichannel said.

BI a motor vehicle credit is concerned about the explosion would make the economic bubble. Especially low down payment should be submitted to potential customers. Prior to the 10-20 percent range in scale BI condition had to guess.

So how big is the risk of motor vehicle loans?

BI to data banks and finance companies, auto finance loans give Rp33 trillion to the value of Rp130 ​​trillion in 2010 to a new estimate is based. Funding sources, an estimate of the amount of Rp79, multi-financing from banks by 35 trillion of funds.
Meanwhile, car financing stood by the banks in 2010, RP80 trillion outstanding cost estimates for new funding in the amount of rp28, 4 trillion, or 53.9 percent (year on year) growth.

Although the development of auto loans is very high, but not active (NPL) of debt is very low. NPL 1.2 percent of bank loans for motor vehicles in July 2011. 2.1 percent credit on motor at the NPL. In the meantime, 2.8-percent limit for a disabled vehicle financing (NPF) credit finance company.

61% auto loan from most automotive credit, and 38 percent of the motorcycles.Meanwhile, loan commercial vehicle / truck at 1 percent. When viewed under the aspect of development, motor vehicles, 64.5 percent compared to last year on four wheels, the highest growth rate. Unique, a small motor actually 7.5 percent year on year growth rate.

Financial stability, central bank credit growth and large automobile finance company’s financial resources, financial system instability in the amount of disturbance as an increase in potential can be determined reported.
This potential arises due to various factors. First, relatively low down payment with insufficient income supports, credit to get potential users. In the later date is likely to lead to default.
Secondly, the credit terms of 2 to 4 years and 5 years for a vehicle wheel 4 is seen to increase to default on the old bike. Therefore be used for vehicles transporting more than 10 years to finance, is the estimated economic life of the vehicle is not enough time.