Analysis: Lower loan-to-value policy: Impact on banks, property and auto
By Teguh Hartanto, Natalia Sutanto and Leonardo Gavaza
In an effort to prevent a potential bubble burst in consumer loans, the central bank (BI), effective in June 2012, has finally increased the minimum down payments (DPs) for mortgage and automotive loans, translating to lower loan-to-value (LTV) policy.
BI increased down payments (DPs) for commercial vehicles to 20 percent, 2 wheelers to 25 percent and 4 wheelers to 30 percent. For mu...