When facing urgent financial needs, many people look for loan options without having to give up their vehicle, which is essential for daily activities. This raises a common question: can you still use your vehicle when applying for a loan secured by a BPKB (Vehicle Ownership Certificate)?
To understand the answer, it’s important to know how BPKB-backed loans work. This article will walk you through the mechanism, requirements, and key considerations before choosing a financing company. Let’s dive in.
Can You Still Use Your Vehicle During a BPKB Loan?
Many people still feel hesitant about BPKB-backed loans, especially when dealing with financing companies like BFI Finance. One of the most frequently asked questions is whether the vehicle can still be used during the loan period. This concern often arises from the assumption that the vehicle must be surrendered.
In reality, for BPKB-backed financing, only the BPKB document is used as collateral—not the vehicle itself. This is based on the fiduciary principle, where ownership rights are legally transferred to the creditor, while the physical asset remains in the debtor’s possession.
This means you can continue using your vehicle for daily activities, even while it is being used as collateral.
BPKB loans are commonly used for various financial needs, such as:
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Daily expenses
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Business capital
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Education costs
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Home renovation
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Emergency needs
Additionally, BPKB-backed financing can also be used for purchasing motorcycles or cars on credit, while still allowing the borrower to use the vehicle during the loan tenure.
Legal Basis of BPKB-Backed Loans
Loans secured by BPKB are regulated under fiduciary law. In this system, the BPKB document is held by the creditor, while the vehicle remains with the owner.
This arrangement is governed by:
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Law No. 42 of 1999 on Fiduciary Security
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Financial Services Authority Regulation (POJK) No. 35/POJK.05/2018 on Financing Companies
Borrower Rights and Obligations
When taking out a BPKB-backed loan, borrowers are required to repay the principal and interest according to the agreed schedule.
They must also:
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Provide accurate personal and vehicle information
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Maintain the condition of the pledged vehicle
On the other hand, borrowers have the right to:
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Receive clear information about interest rates, fees, and loan terms
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Continue using the vehicle during the loan period
Once the loan is fully repaid, the BPKB document will be returned to the vehicle owner.
What Happens If You Miss Payments?
Although you can continue using your vehicle, you are still obligated to make timely payments. Failure to do so may result in several consequences:
1. Late Fees and Additional Interest
Missing payments may lead to late fees and ongoing interest accumulation, increasing your total debt over time.
2. Lower Credit Score
Late payments are recorded in your credit history and can negatively affect your credit score, making it harder to get future loans or resulting in higher interest rates.
3. Risk of Vehicle Repossession
If payments are not made as agreed, the lender has the right to repossess the vehicle. However, this usually happens after prior warnings or collection efforts.
Requirements for a BPKB Loan at BFI Finance
Before applying for a BPKB-backed loan, you need to meet several requirements related to your profile, documents, and vehicle condition.
1. Borrower Requirements
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Indonesian citizen
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Aged 21–60 years (single, married, or divorced)
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Residence status: owned, family-owned, or rented annually
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Employment: employee, civil servant, or entrepreneur
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Business/profession must be lawful
2. Required Documents
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Original BPKB and vehicle registration (STNK)
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ID card (KTP) of applicant and spouse (if married)
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Proof of income or salary slip
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Family card (KK)
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Tax ID (NPWP), especially for larger loans
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Utility bill (electricity or water) for address verification
3. Vehicle Requirements
Cars:
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Privately owned with original BPKB
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BPKB can be under personal, spouse, or third-party name (with proof of purchase)
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Company-owned BPKB allowed with supporting documents
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Maximum age: around 20 years (sedan, SUV, minibus)
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Pickup/truck: maximum around 13 years
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Active vehicle tax
Motorcycles:
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Privately owned with original BPKB
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Maximum age: around 13 years (for Japanese brands)
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Active registration and tax status
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Expired tax may still be accepted under certain conditions
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Must use private (black) license plates
How to Retrieve Your BPKB After Loan Completion
Once your loan is fully paid off, you can reclaim your BPKB by following these steps:
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Ensure the loan is 100% settled
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Prepare identification documents (KTP, KK, STNK)
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Bring proof of full repayment
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Provide authorization letter if represented by someone else
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Visit the financing company office
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Sign the handover document
So, can you still use your vehicle when applying for a BPKB-backed loan? The answer is yes. Since only the BPKB document is used as collateral, the vehicle remains in your possession and can be used as usual.
By understanding the requirements and process, you can better prepare your documents and ensure your vehicle meets the necessary criteria—helping your loan application run smoothly and increasing your chances of approval.
If you need extra funds without selling your vehicle, BPKB-backed financing from BFI Finance can be a practical solution. They offer financing options secured by motorcycle or car BPKB, as well as property certificates for larger funding needs.
As a licensed and regulated financing company under Indonesia’s Financial Services Authority (OJK), BFI Finance ensures a transparent and secure application process.
With proper financial planning, meeting your financial needs becomes more manageable—because there’s always a way with BFI Finance.
