The provision of credit by banks is based on an agreement. Since the bank credit agreement has not been specifically regulated, the principles and principles of the agreement law in civil law apply when entering into a creidt agreement. When you want to apply for credit, you must pay attention to the clauses contained in the credit agreement. In a credit agreement with a bank, there is usually a standard clause. This is not prohibited because of the precautionary factor carried out by the bank. In addition, it must be borne in mind, that banks also seek profits from the provision of credit through interest on debts that must be paid by the debtor (borrower) or the distribution of profits to Islamic banks.
When your business gets stuck or is hit by a disaster, the obligation to pay to the bank becomes stagnant. If this problem persists, your business does not quickly get out of trouble then credit becomes problematic. Non-performing loans are a condition where the customer is unable to pay part or all of his obligations to the bank as promised. If the event befalls you, there is no need to panic, there are several ways to break down problem loans.
Rescheduling is a change in credit terms that only relates to the payment schedule and / or time period. Credit rescue by rescheduling to customers, so that customers can try again to make money to pay all their debts. Rescheduling can take the form of two types:
a. Extend the credit period. Debtors are given waivers in terms of credit terms. For example, from 12 months to 18 months.
b. Extend the installment period. Debtors are given an installment time waiver. For example, from 12 times to 18 installments. By extending the installment period, it will be easier for the debtor to pay because the installments will decrease.
Return conditions are changes in some or all of the credit terms that are not limited to changes to the payment schedule, the period of time, as long as it does not involve the maximum credit balance. It is expected that with this return requirement the debtor is able to pay his debts. The main purpose of this reconditioning is to strengthen the bank’s bargaining position with the debtor.
Reordering changes in credit terms which include rescheduling and reconditioning. These tips are a combination of the two ways above so that creditors are expected to be able to pay their debts.
Reorganization and recapitulation
This method can be done by improving the funding structure (recapitulation) and debtor business organization. Sometimes banks can help debtors improve their financial conditions and liquidity. Thus the debtor is gradually able to pay off the credit and interest. However, this effort takes a long time, so it requires patience from creditors.