BANKING - BSM Refused to Provide Financing Without Collateral

Jakarta (26/8) the new regulation of Kredit Usaha Rakyat  (KUR)/micro financing for the amount of IDR 20 million without collateral is not unanimously agreed by Islamic bankers. Bank  Syariah Mandiri (BSM) refused to facilitate financing without collateral, as explained by Andri Vendredi Subardi, head of micro-financing program of BSM, he said that the bank will be at high risk to distribute financing without collateral.
During the breakfasting BSM with journalists Andri affirmed that BSM has not received notification from the office of minister of co-operative shops and SMe’s in related to financing without collateral up to the amount of IDR 20 million.
Yet, he will study the mechanism before implementation will take place. “In the near future we will analyze it to be able to implement it”, said Andri.

In so far BSM has distribute IDR 120 billion for micro financing, higher that  the set target by the government, which was IDR 117 billion.

With this adjustment, the micro financing distribution of BSM target is set for IDR 450 billion, this year, in August BSM has distributed microfinancing for IDR 190 billion, to 1038 applicants.

“Insyaallah at the end of this year the set target could be achieved” exclaimed Andri. (Agus Y /Nibra)

Source : http://pkesinteraktif.com/english/bank/1845-bsm-refused-to-provide-financing-without-collateral.html - Aug 26, 2010