credit ceiling
Also called: plafon pinjaman
The maximum loan limit approved by the bank for your KPR.
What it means
The credit ceiling is the maximum loan limit approved by the lender for KPR needs. This figure is usually the property price minus the DP, then adjusted based on the affordability analysis. The ceiling is stated in the credit agreement and becomes the basis for calculating interest and installments. Families need to understand the ceiling before signing the agreement.
Why it matters for families
The credit ceiling determines how much debt must be carried for years. If the ceiling is too high relative to income, installments can eat into other needs. A misunderstanding can make families think the ceiling equals the house price, when the DP has already been deducted. As a result, the family budget plan misses the mark from the start.
Example
For example, a house costs Rp600 million with a DP of Rp120 million. The credit ceiling applied for is around Rp480 million, depending on the lender's approval. If the family income is Rp12 million per month, the installment should be calculated carefully so it does not exceed the safe share of the budget.
Common misunderstanding
The credit ceiling is often assumed to equal the property price. The correction: the ceiling is the remainder after the DP and other costs are accounted for.