Productive Credit: Definition, Types, and Examples

Admin BFI
21 April 2022
Productive Credit: Definition, Types, and Examples

Sobat BFI, have you ever heard a saying with the meaning "It's OK to be in debt as long as you have a purpose?". Can we actually be debt-free as long as we have a purpose? The answer is yes because debt is an option for each individual in managing and solving their financial problems. This time, BFI Finance will discuss the debt with the purpose of “Earning Credit”. For information, see below, yes.


1. Definition of Productive Credit

Productive credit is a combination of 2 verbs credit and productive. Credit itself is a financial transaction that involves the borrower/debtor and the lender or creditor and requires the borrower to pay an agreed amount of debt within a specified period of time. Meanwhile, productivity has the meaning of activities that can produce something.

Thus, productive credit is defined as an activity or loan proposed by someone for the purpose of producing something new, either in the form of money or goods of value that can later be used as profit.

2. Types of Productive Credit Based on Use

2.1. Working Capital Credit 

Based on usage, productive credit can also be used as working capital credit or KMK. This credit is usually provided by banks to provide business capital loans. In applying for this credit, you need collateral that can be guaranteed.

2.2. Investment Credit

Next is investment credit. According to OJK, this credit is a loan that supports or provides long-term financing. For example, to open a business, build a factory, and buildings designated for other business purposes. This type of credit requires requirements in the form of SIUP (Trade Business License) and Company Registration Certificate (TDP).

3. Types of Productive Loans Based on Term

3.1. Short Term

When viewed from the period of time, productive credit is divided into two, namely short-term and long-term. Short-term loans usually have a tenor that is not too long. There are 2 possibilities that can happen if you take a short-term tenor. The first is a large installment with a large loan amount and a small loan amount so that the tenor is also not too long. To get a short-term tenor with a loan amount that is not so large, you can apply for a loan through an online loan institution or a financing house with guaranteed assets that are not so expensive.

3.2. Long Term

In contrast to short-term, long-term productive loans usually have larger loan amounts, ranging from tens of millions to billions. To apply for a long-term loan, you can apply for a loan to a bank or financing house with collateral such as a car BPKB or house certificate. At BFI Finance, you can apply for a loan of up to 3 billion with a house certificate as collateral. For product information and submissions, click the following link.

4. Example of Productive Credit

Kredit Produktif - KPR

There are several examples of productive loans that are usually used by most people.

4.1. Home Ownership Loans (KPR)

KPR is one of the loans provided by banks to help people own housing with the payment method in monthly installments according to the agreed time. Why can this type of credit be said to be productive credit? The answer is that when the mortgage is paid off, the house can become a profitable asset such as being sold, rented, or as collateral for a business loan.

4.2. Business Credit

The most common example of productive credit is a business credit, where borrowed money will be repaid to generate other income. Working Capital Loans or KMK are also included in examples of productive loans.

5. Things to Consider When Loans

Productive credit has a useful value considering that there are opportunities to earn more than the loan amount proposed. However, before applying for productive credit, make sure you pay attention and consider the following two things.

5.1. Choose the Right Product

If you intend to apply for a loan for business purposes, then make sure to choose the right product. As an example, you are willing to open a laundry business or business with a capital of under Rp. 10 million. So, you can apply for business capital with a loan amount of around IDR 9-10 million. For the intended institution, you can apply for a loan at a legal online loan institution or a financing house such as BFI Finance with a vehicle BPKB guarantee.

5.2. Profit and Loss Calculation 

Next is the calculation of profit and loss. We recommend doing this before determining the type of business that will be undertaken. After that, choose a productive credit provider that has advantages such as promos, low interest, long tenors, and other provisions such as credit restructuring if at any time the business runs into obstacles.

Special in the month of BFI Finance's Anniversary, BFI Finance distributes prizes in the form of cashback for debtors who submit applications guaranteed by a house certificate or vehicle BPKB. For more information, please check the following link.

Cashback Application for Vehicle BPKB Guaranteed Loans

Cashback for Home Certificate Guarantee Loans

6. Tips to Avoid Paying Defaults

Kredit Produktif

It is unavoidable that a large profit carries a large risk of loss or failure. Starting a business is also not something easy, but that doesn't mean it can't be done, because when starting a business the desire to succeed must be greater than the fear of failure. To keep your business running smoothly and your productive credit installments safe, these tips might help you.

6.1. Saving

Even though you have sufficient capital and a decent income, you still have to save money and you should save the remaining profits as an emergency fund if at any time the business you run experiences a decline in both turnover and buyer interest.

6.2. Monitoring and Evaluation of Business Profits

Also, make sure to always monitor the financial flow of the business and evaluate it at a predetermined time period. By monitoring and evaluating, you can create a new strategy for the sustainability of your business.

6.3. Separate Business Money from Personal

The last thing is not to mix personal income money with business finances. Besides being able to be used each other, this aims to see the financial growth of your business.

This is information about productive loans from BFI Finance for BFI friends. So, there is nothing wrong with debt as long as the debt is said to be healthy and can produce. Hope this article was useful!

Product information is available at BFI Finance and for submissions, visit this useful link for more information.

Shariah Financing

Purchase sharia used and multi-purpose cars with the No Fines and No Penalties feature See Terms

Home Certificate

Low interest rates start from 0.6% per month and long loan tenors up until 7 years. See Terms

BPKB Motor

Get a loan with a fast process and a maximum tenor of up to 24 months. See Terms


Get a disbursement fund of up to 85% of the vehicle value and a tenor of up to 4 years. See Terms

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