Yes unless you own land or a vehicle that you can put up as collateral, these banks would be your only choice to borrow money. Strange I know people who pay these banks back weekly and they never complain about the interest rate. [Maybe I just havent been there when they do.]
Guys , I guess we are talking about 2 different point of views :
1 - investing in stock market , for different reasons such as retirement plans , kids college futures costs , life insurances and others . This is , because of its nature , unpredictable and long-term startegy .
2 - LPD banks , a specific rural focused financial service . These are based on personal reputation , both bank and costumers , as I have noticed .The indonesian government is trying to turn LPDs in official banks just because LPD banks are draining savings in the villages , but recently LPDs did not agree to the plan .
As Gilbert said , saving money in differet LPD at different time could be a winning strategy .
In these days ( I should say years ) , as a part time trader as i am , i don't see any efficiency investing long term in founds , etf , etc , for normal investors ( 20-50K usd ) .
So , if the amount is higher , the investor can afford to loose an important percentage for some years and the term is 8-10 years , ok , let the advisor manage your money . Otherwise , saving 2K usd montly in 3 different LPDs will make you get a higher gain and live ( I suppose ) a better life in Bali .
totally agree with supertago ...
back in the NL I have a portfolio with several funds,shares,bonds...and over the last 15 years it didn't make any real-money :icon_rolleyes:
btw, with the interest made from the LPD, one could pay for several kids education..renovate the village puri/a...fix bad roads in the village...etcetc...:icon_wink:
back in the NL I have a portfolio with several funds,shares,bonds...and over the last 15 years it didn't make any real-money :icon_rolleyes:
btw, with the interest made from the LPD, one could pay for several kids education..renovate the village puri/a...fix bad roads in the village...etcetc...:icon_wink:
trick??nice work??
Someone who borrows money, does so out of their own free will..nobody's is holding a gun to their head and say 'sign here for the loan you don't want' :icon_rolleyes:
What a silly,silly comment.
Of course nobody's holding a gun to their head, but when somebody is borrowing money at extortionist rates up to the period of their lifetime (as Mat states) to pay for some of the neccesities of life like Medical treatment and Education, they are obviously someone with no other option. This behaviour is predatory and exploitative at best, (very, very much like credit card companies by the sounds of it, although a lot who get 'stung' by credit cards have only themselves to blame for buying too much crap they don't need) simple as that!
I've said it before without shame and I'll say it again. If a Westerner can't afford to live in Indo without sourcing their income from Indo, then they probably shouldn't be living in Indo. There's already far too many mouths to feed without the leeches getting their share as well. At the very least they shouldn't be indulging in this caper.
I was just making a point with the gun thing :icon_rolleyes:
the silly comment however is that you suggest that there's a trick or something like a trick.
Clearly you have no to little knowledge about life in the desa
for us foreigners it indeed is almost loanshark rates, for the locals it's normal.
These banks have been around for ages, and will be around for ages to come.
FYI (and matthew) most people borrow money there to pay for the next ceremonial expense, not for schooling or medical treatment. And the majority of loans is shortterm.
I don't feel it as an attack on me personally but to be clear,
I don't source income from these banks nor do I have a business in Indonesia.
Most of my interest from these banks goes back into the community (like in the examples above),
so if I would pull my money out... 'my' village and some other villages would be worse off then that they are now.
the silly comment however is that you suggest that there's a trick or something like a trick.
Clearly you have no to little knowledge about life in the desa
for us foreigners it indeed is almost loanshark rates, for the locals it's normal.
These banks have been around for ages, and will be around for ages to come.
FYI (and matthew) most people borrow money there to pay for the next ceremonial expense, not for schooling or medical treatment. And the majority of loans is shortterm.
I don't feel it as an attack on me personally but to be clear,
I don't source income from these banks nor do I have a business in Indonesia.
Most of my interest from these banks goes back into the community (like in the examples above),
so if I would pull my money out... 'my' village and some other villages would be worse off then that they are now.
Well said Adam!!! I totally agree!!!
Medical treatment is very expensive for local people and very often they must borrow money and pay back for years, what about the people who borrow money to pay a motorbike and half of their salary goes to pay the credit for years???
In my opinion there is a lot exploitation in this island............
people who are needy or poor, who don't have land or anything else of worth to their name can just go to the kepala desa and ask for a surat keterangan wich states their sosial status being poor. Then with this surat keterangan can get medical treatment free of charge :icon_rolleyes:
Lovina
We will be in Lovina in the next couple of weeks maybe we could catch up with you then as i have some $ to invest, however, this all sounds a bit 'over the top'. maybe you could get back to me.
Rosemary Murdock
We will be in Lovina in the next couple of weeks maybe we could catch up with you then as i have some $ to invest, however, this all sounds a bit 'over the top'. maybe you could get back to me.
Rosemary Murdock
The Bank of Gil? :highly_amused:
Try getting a loan from any other bank in the whole wide world without some collateral to back it and they will think you are having a joke.
Try getting a loan from any other bank in the whole wide world without some collateral to back it and they will think you are having a joke.
Not my bank, I just got some rupiahs there :icon_wink:
btw, who said that one doesn't need collateral to get a loan at the LPD??
And just my humble opinion, if an expat needs to loan money...what the feck is he/she doing on Bali??
but for sure one can loan money personally from me, no problemo...but again with collateral:icon_mrgreen: oh and percentages just 25% per week for expats, locals 5% per month
every LPD is different...
about 7 or 8 months ago one near Lovina went bust, lot of people lost their money...but if one spreads the risk (more accounts at several LPD's) the loss is covered by the other accounts.
Hi Gilbert,
the study is done from a German Professor Seibel and Ketut Nurcahya there work together with
the Indo. government.
Don't forget there are more then 1300 LDP's in Bali, the result is pretty good, if ca. 200 not
performing good it means also 1100 are in a good shape, and that's a good result.
It would be kinde if u could send me the on's u are infested.
Unfortunate i cant get a detail list with names from the study.
the study is done from a German Professor Seibel and Ketut Nurcahya there work together with
the Indo. government.
Don't forget there are more then 1300 LDP's in Bali, the result is pretty good, if ca. 200 not
performing good it means also 1100 are in a good shape, and that's a good result.
It would be kinde if u could send me the on's u are infested.
Unfortunate i cant get a detail list with names from the study.