Have you ever heard of a UMi loan? Don’t interpret it as a loan mom, you know. UMi is ultra-micro financing provided by the government like a business capital loan.
You could say this UMi has the same goals as the People’s Business Credit. The difference is that this business capital loan is aimed at people who need a loan of USD. 10 million.
The government provides this business capital loan as an effort to help small or micro businesses that intend to do business. Because of not a few who have difficulty in accessing KUR. That’s why UMi is provided as an alternative choice.
Want to know more about business capital loans from the Government this one? Let’s find out more in the following review.
A glimpse of UMi, business capital loans from the Government
Business Assistance from the government (Ministry of Finance). Although the People’s Business Credit (KUR) has already been provided by the Government, its existence has not been enough to help many micros, small and medium-sized businesses (MSMEs).
Why is that? Not that the loan amount is lacking, but not a few are applying for KUR, but not getting away.
Seeing this, of course, the Government does not remain silent. Ultra Micro or UMi financing is provided as an alternative for micro-businesses to get business capital loans. Moreover, this program is intended to create new entrepreneurs.
Since 2017 UMi has been able to be accessed by micro-entrepreneurs who need venture capital. With the existence of this business capital loan program, business actors that are declared banks are not eligible for loans or do not have collateral can obtain loans from the UMi program.
The maximum amount of loan that can be disbursed from UMi is USD 10 million. The interest rate of UMi has so far been around 0.95 percent per month. While the tenor can reach 48 months.
Fortunately again if the debtor completes his obligations in installment payments to the full, the debtor has the opportunity to get a Micro KUR loan worth USD 25 million to Retail KUR worth USD 500 million.
The difference between UMi business capital loans
It is true that UMi and KUR are both Government programs. However, UMi and KUR have differences that you should know. Anything? As quoted from the Ministry of Finance portal, this is the difference.
- Distributor institutions: UMi is channeled by non-bank financial institutions (LKBB), while KUR is channeled by banks or financial institutions.
- Amount of loan or credit ceiling: UMi disburses funds up to a maximum of IDR 10 million, while KUR disburses a maximum of IDR 25 million (micro) and IDR 500 million (retail).
- Loan recipients: UMi is targeting ultra micro-businesses, while KUR is targeting small and medium businesses.
- Loan tenure: UMi offers a loan period of up to 52 weeks, while KUR provides a term of more than 1 year.
- Collateral or collateral: UMi does not ask for collateral or collateral requirements for group financing, while KUR requires collateral or loans.
- Assistance and training: UMi requires assistance and training, while KUR does not require it.
- Government Support: UMi can get funding from the Government Investment Center (PIP) given to LKBB with 2-4 percent interest. While KUR can subsidize interest from the Government.
- Loan procedure: UMi uses the LKBB mechanism, while KUR uses the banking mechanism.
What are the conditions needed to submit UMi?
For those of you who are interested in applying for this UMi venture capital loan, there are a number of conditions that you must meet.
- Your business is no longer funded by financial institutions or cooperatives.
- The person who submitted the status as an Indonesian citizen is proven by his KTP.
- Have a business license or business certificate.
Interestingly, if only the person who submitted the UMi did not provide honest information about the existence of loan disbursement from other parties, the distributor and the Government could find out.
Because distributors and the Government have a Program Credit Information System (SIKP) which is the UMi recipient database. From this SIKP, the dealer can know the prospective debtor is having installments running elsewhere or not.
How do you get UMi?
As explained above, UMi is channeled to non-bank financial institutions (LKBB). Thus, the Government through PIP has become a source of capital for UMi that is channeled to distributors, such as:
- PT Pegadaian, whose program is named Kreasi UMi. Requirements that must be available if submitting through the Pawnshop are the Vehicle Ownership Book (BPKB).
- PT Permodalan Nasional Madani, whose program is named Mekaar. The provision of venture capital from this institution is intended for groups of underprivileged women.
- PT Bahana Artha Ventura, whose program is called the Cooperative.
That was information about UMi business capital loans. So, if you submit a loan to open a business that the bank rejects, just choose UMi. The conditions are easy and the interest is also affordable.