From Interest Rates to Repayment Schemes, the Public is Urged to Be More Discerning in Choosing Credit Services

Jakarta – The public is deemed to need greater caution in determining loan offers or credit services that best suit their individual needs and financial capabilities.

This is because applying for loans has become an increasingly common practice, both to meet consumptive needs and to support long-term financial plans.

The Head of Retail Business Development at OK Bank, Eko Andhika Kotama, stressed the importance of comprehensive understanding for the public before deciding to take out a loan.

“The public needs to view loans as part of financial planning, so it is essential to understand all aspects from interest rates, tenors, to repayment schemes. In this way, the decisions made can be more measured and aligned with needs,” said Eko in his statement on Tuesday, 28 April 2026.

He stated that choosing the right loan is not just about the ease of the application process, but also involves various factors that will directly impact financial conditions in the future. Therefore, it is important for prospective customers to understand several key aspects before making a decision.

One of the first factors to consider is the interest rate, which determines the total cost to be paid over the loan period. The lower the interest rate, the lighter the burden carried. However, according to him, the public also needs to ensure whether the offered interest is fixed or fluctuating, as this will affect the stability of the instalments.

In addition to interest, the loan tenor or period is also an important consideration. A longer tenor usually provides lighter monthly instalments, but the total interest paid can be higher. Conversely, a shorter tenor will accelerate repayment, but with higher instalments. Adjusting the tenor to the ability to pay is key to maintaining healthy finances.

Transparency of costs is also no less important. Prospective customers should fully understand the components of fees charged, from administrative fees, provisions, to potential fines. Transparent credit products will help customers avoid hidden costs that can become burdensome later on.

On the other hand, certainty of instalments is a factor that is now increasingly noted. Fixed instalment schemes are considered to provide a sense of security because the monthly payment amount does not change during the loan period. This makes it easier for customers to manage cash flow and plan expenses more disciplinedly.