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