People’s Business Credit: Definition, Objectives and Methods of Submission

Having a business of your own and success is the dream of many people. Especially for those who already have a serious intention to build their own business. It is this enthusiasm that makes the government give full support to the people who want to build a business.

Those who have plans to build a business must have prepared it for a long time, starting from the type of business that will be run, the strategy for developing the business and the most important thing is the capital of the business you want to build. Why does the government have to support people’s efforts?

The existence of national people’s businesses can help the national economy, especially to open jobs. Therefore, one of the efforts given by the government is to provide a financing for those who want to have a business through People’s Business Credit or what we are familiar with KUR.


Definition of People’s Business Credit (KUR)

credit loans

People’s Business Credit (KUR) is a credit or financing service provided by the government through banking to Micro, Small and Medium Enterprises and Cooperatives (UMKMK) or businesses that are feasible but not yet bankable. That is, the business still has the potential or good business prospects and can return the loan.

KUR itself covers various types of business, especially businesses engaged in productive businesses such as agriculture, industry, fisheries and maritime affairs, forestry to savings and loan services businesses. All forms of business are expected to provide many conveniences for the community.


The purpose of the People’s Business Credit (KUR)

The purpose of the People

Generally the purpose of the People’s Business Credit (KUR) is for MSMEs, creating jobs to alleviate poverty. Therefore, the government issues various policies in the development and empowerment that aim to improve the real sector and empower MSMEs.

Some of the intended development and empowerment policies can be:

  • Entrepreneurship Development
  • Increased access to funding sources
  • Increased market for MSME products
  • Regulatory reform from MSMEs


Then, How Do You Get People’s Business Credit (KUR)?

Then, How Do You Get People

Now we will discuss how the current distribution of KUR and get a capital loan from KUR. There are a lot of enthusiasts from KUR, but some of them are still confused about how to obtain it. Therefore, those of you who are interested in receiving a loan from KUR can pay attention to the following:

  • Make sure the business you have is a productive one which means that the business can encourage increased activity and creativity in disadvantaged areas. Some types of productive businesses are handicrafts, processed products, livestock to breeding.
  • Prepare all kinds of required documents or documents such as KTP, Family Card, Domicile Statement, Business Legality (deed of business establishment), business permit (SIUP, TDP), financial statements, business proposals to other requirements requested by the bank.
  • Go to a number of banks that provide access to KUR and don’t forget to ask for information related to lending.
  • Finally, the banking will conduct a survey of your business. Then it was during the survey that the bank would see whether it was appropriate to give the People’s Business Credit or not. If it meets the requirements, the loan that has been submitted will be immediately disbursed.

Those are some ways and procedures to get People’s Business Credit (KUR). If the submission you submit takes a long time or is even rejected, you can look for several other loan alternatives such as through the P2P Lending platform. In P2P Lending the process is relatively shorter so you can optimize your time to prepare for other things.