The differences interest rate between financial institutions and banks


Mrs Rizka, we get funding bid from a financial institution to buy the Ice cream machine. Can you explain whether there are differences in the way financial institutions work with the Bank general? what we need to note in this funding?

Evita, Jakarta


Financial institutions typically provide the interest rate that is greater than the bank. Because the bank to get the source of funds from the community, such as savings deposits, time deposits and other, while the
financial institutions do not get funds from the savings of the community, but from certain parties, such as a bond or letter of debt sold to the public.

Of interest rate given to the debtors higher than rate or coupons from the bonds. You need to consider the differences in the interest rate provided by the Bank and financing institutions, and the process of credit to the Bank and financing institutions. Congratulations and good luck trying.

Source: Columns RIZKA BAELY on Money Magazine! (Majalah Duit!).

Rizka Baely, is the President Director and Chief Investment Officer of Momentum Synergy Asset Management. She has been involved in financial management and investment of more than 15 years, including during 12 years as Country Manager for Citigroup Asset Management in Indonesia. Disclaimer:
This paper is for information only and is not an offer to sell or solicitation to buy investment instruments.

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