BI will loosen LTV to 80%. This rule will be released in early June. Bank Indonesia (BI) will soon revise the rules regarding loan to value (LTV) to encourage lending. The plan, LTV will be increased from 70% to 80%.
Agus DW Martowardojo, Governor of Bank Indonesia, said the policy on LTV will segeral resolved, so that the PBI (Regulation of Bank Indonesia) it could be published in early June (2015) future.
The LTV easing, added Agus, just for the first home. As for the second and third homes still follow the applicable regulations. The same rule also applies to car loans and credit motorcycle. "To the credit of the motor car and DP (down payment) was at least 20%," said Agus in Ambon, Monday, May 25, 2015.
However, the facilities (easing LTV) will only be given to banks that good credit quality, aka NPL (Non Performing Loan) it does not exceed 5%.
BI easing LTV hopes can help drive economic growth. "We believe, easing LTV will also encourage lending. By easing LTV will affect credit growth (rise) by 1% "said Agus.