The pawnshop scheme for debt securities at Pegadaian is considered practical

ILLUSTRATION. Pawnshop Headquarters Building in Jakarta.

Reporter: Danielisa Putriadita | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. The choice of loan funds is increasingly diverse and easy. Most recently, PT Pegadaian (accepts debt securities as a pawn product.

Director of Marketing and Product Development of Pegadaian, Harianto Widodo, said that he was conducting a trial of the mortgage of shares and debt securities which was supervised by the Financial Services Authority (OJK).

Types of debt securities accepted for pawning are Government Securities (SUN), Retail Government Bonds (ORI) and BUMN Bonds with a minimum rating of A +.

The next requirement is that Pegadaian only accepts debt securities with a minimum maturity of 180 days. “If the bond maturity is less than 180 days, it means that it cannot be pawned,” said Harianto.

Also Read: Pegadaian aims at pawning business of state securities (SBN)

The pawn period is up to 90 days. However, it can be extended by paying a capital lease and maturity is still eligible. If until maturity the customer cannot pay off, the guarantee will be sold through a market mechanism where the proceeds from the sale will then be used to pay off the loan.

From pawning debt securities, customers can get financing starting from Rp. 1 million with a maximum financing for individuals of up to Rp. 5 billion while for institutions a maximum of Rp. 20 billion.

While, loan to value (LTV) obtained by the borrower from the mortgage loan is 65% without any factor hait cut or risk discounts.

The pawnshop capital lease costs 0.625% fixed for the first 15 days. Furthermore, a daily capital rental of 0.0416% of the day will be charged. So that the interest reaches 1.2% per month or nearly 155 per year.

Meanwhile, the cost at the time of the contract consists of 0.25% administration fee of the loan. Transfer fee to custody bank is IDR 45,000 per type of securities and disbursement fee disbursement (not tunai) Rp 2,500.

Pegadaian will process the disbursement within 1 to three days after the documents are complete and the guarantee has been received by the custody bank.

Also Read: Not only stocks, but now they can also mortgage government bonds through securities pawning

Harianto emphasized that as long as the debt securities are pawned, customers as securities owners will still receive the right to coupons from the securities.

“Bond pawning is a practical and pleasant funding scheme for customers because the coupon income is still passed on to the customer,” he said Head of Research & Consulting Service Main Infovesta, Edbert Suryajaya, Tuesday (20/10).