BTN Launches House Financing Program for Low-Income People

TEMPO.CO, Jakarta - Bank Tabungan Negara (BTN) recently launched a house ownership credit (KPR) facility for workers in the informal sector. The facility, named the KPR BTN Mikro, is expected to accommodate low-income workers.

"The new product is expected to accommodate the needs of house financing for low-income people, specifically workers in the informal sector, which numbers is predicted to reach 6.5 million people,” said President Director of BTN Maryono after the product’s launching event on Friday, February 24, 2017.

Maryono said that KPR BTN Mikro is aimed at families or individuals with an average income of Rp. 1.8 to Rp. 2.8 million per month.

"This segment of people is the segment that requires access to financing because they are not included in the subsidized KPR beneficiary category," Maryono said.

However, Maryono said that the KPR BTN Mikro is not part of the government's one million house financing program. "KPR BTN Micro financing is the initiative of BTN," Maryono said.

The program will have an annual interest rate of 7.99 percent with daily, weekly, and monthly installment options.

Maryono said that the KPR BTN Mikro program can be used to purchase new of used houses, land plot purchases, house construction, or renovation.

Maryono said that for the purchase of a first house BTN will apply a one percent down payment, while for house construction or renovation, the down payment will be set at 10 percent. "The down payment can be used to disburse KPR Mikro, with a maximum ceiling of Rp 75 million," Maryono said.

The program received a positive response from Public Works and Housing Minister Basuki Hadimuljono. "Low-income people subject to the house financing liquidity facility program [FLPP] should also be eligible for the [KPR BTN Mikro] program," Basuki said.

ANTARA