Definition
KIK (Kredit Investasi Kecil = Small Investment Loans) is a moderate or long-term credit that is given to entrepreneurs/small scale establishments with special requirements and procedures.
Loans are used to fund capital goods and services needed for the rehabilitation, modernization and expansion of a project and the establishment of a new project.
Based on a regulation dated June 1, 1983 the maximum KIK loans is Rp.15.000.000 with a time limit of 10 years including a maximum grace period of 4 years and an interest rate of 12% per year.
KMKP is the credit given to entrepreneurs/small scale establishments with the special requirements and procedures for funding capital goods also services needed for undertaking the enterprise. The credit is usually Rp.15,000,000 with a fix time limit 3 years that could be extended and an interest rate of 12% per year.
KCK (Kredit Candak Kulak) is a loan that is available for small traders. The loan usually is Rp3.000 to Rp.15.000 with an interest rate of 1% a month and the maximum time period of 3 months.
Other loans are insurance loans, individual loans but not from usurers and loans from a foundation.
