Interest rates at Danamon

Interest rates at Danamon

From Kompas

I joined Danamon Bank's House-Ownership Loan Program almost two years ago. In the first year, the interest rate was 18 percent per year and the installment was Rp 400,000 per month. Everything ran smoothly during the first year.

In mid-August, Danamon's marketing division notified me that the interest rate had been increased to 19.5 percent per annum and that, therefore, the monthly installment now stood at Rp 421,600.

In September, the bank again raised the monthly installment to Rp 700,000 to keep pace, it claimed, with the interest rate being increased further to 35 percent. (However, a more careful calculation would show that the new monthly installment is the result of the interest rate being increased to over 35 percent.)

I have found these increases difficult to swallow. Other private banks have increased their interest rates by 1 percent to 2.5 percent. Some banks even do not raise the interest rates in their house-ownership loans.

To be honest I cannot afford a monthly installment of Rp 700,000. From my calculations, the interest rate has been raised to 75 percent, not 35 percent, considering that the monthly installment has been raised from Rp 400,000 to Rp 700,000.

I therefore, with all due respect, wish to appeal to the division of Danamon Bank in charge of house-ownership loan interest rates that they raise the interest rates more reasonably and prudently. In my case, if the monthly installment remains Rp 700,000, I will never afford to pay the installments.

I believe other people joining Danamon Bank's House-Ownership Loan Program would not be able to afford to pay the monthly installment if, owing to an increase in the interest rate, the amount goes up by some Rp 300,000.

A customer of

Danamon Bank's House-Ownership

Loan Program

Jakarta