MNC Finance boosts home loans and new car

JAKARTA. Big market and lack of competition by the home financing business become a charm for PT MNC Finance to expand. Moreover, many people in Indonesia are not yet bankable to enjoy mortgage credit facilities by banks.

Therefore, MNC Financing plans to focus in business home financing. “We planned to develop mortgage as diversified portfolio of financing,” said Suhendra Lie, Vice President Director of MNC Finance to KONTAN, Tuesday (7/10).

MNC sets the target of home financing next year for Rp 250 billion. It is increased 177% rather than the target for 2014, which is Rp 90 billion. The MNC Finance financing reached Rp 70 billion until the end of September.

MNC Finance plans to open new branches office in 11 major cities, such as Makassar, Manado, Medan, Pontianak, Banjarmasin, Samarinda, Pekanbaru, and Lampung.

Currently, MNC is testing the new offices in Semarang and Denpasar. “Our segment of small and medium business customers are mostly not bankable, but feasible. Financed houses also a maximum of Rp 650 million and most home are resale, “ Suhendra added.

It is not only enlarging housing finance, MNC Finance also wants to open business lines in new cars financing. During this time, the company that 99,99% owned PT Bhakti Capital Tbk has business in used cars financing.  

Suhendra saw the potential market in financing new cars, especially low cost green car and below Rp 150 million. "These segments are large enough as an opportunity," said Suhendra.

The interest rate loan to new car financing is also more competitive than a used car. "As well as a diversified portfolio of financing," he explained.

Until the end of September 2014, MNC Finance portfolio reached Rp 1,1 trillion. It grew 25% compared to the same period last year. The financing flew to the four wheeled motor vehicle was about 85%, and then 10% went to heavy equipment financing. The rest reserved to home financing.