I.

Executive Summary

Bank is a financial institution which gather public funds and distribute it as a loans or other term
in order to improve peoples living standard (UU Negara Republik Indonesia No.10/1998 pasal 1).
Bank can be divided into two types which is commercial/retail bank and investment bank.

CIMB Niaga is a bank that formed after CIMB Bank and Niaga Bank merged in (tahun berapa).
CIMB Niaga classified as commercial bank that raised fund from funding program such as saving,
deposit or another funding program and distribute it as a loan to people. In CIMB Niaga loan can be
categorized into 4 segmentation which is Corporate segment, Commercial segment, Micro Small and
Medium Enterprise (MSME) segment and consumer segment.

In CIMB Niaga, loan or funding program is charged by employee whom called Relationship
Manager (RM). Job desks of Relationship manager are to guide customers through credit process
and maintain relationship between customer and bank. To fulfill their job desks, a Relationship
manager have to fully understand about end to end credit process which divide into 5 step. Those
step is Origination, Evaluation, Approval, Disbursement and Maintenance.

II. Business Overview

End to End Credit Process can be divided into five big steps which is :

1. Origination Process
2. Evaluation Process
3. Approval Process
4. Disbursement Process
5. Maintenance Process.

A. Origination Process

Origination process is first process which is consisted of Targeting, Prospecting and Credit
Initiation.

a. Targeting is process where RM begin to define and create target market that will offered
loan by RM. RM can find their target market through 3 methods. Those methods are
Walk In ( debtors come to bank themselves), Canvassing ( RM visits area of
business/company which considered potential) and Referral (RM can obtain data from
colleagues)
b. After target market defined, RM start Prospecting their debtors candidate. In this step,
RM will ensure candidate to take some loan and other facility from CIMB Niaga.
c. Altogether with prospecting, RM will start discussing with debtor candidate to know
about their credit needs and. business prospect. RM will gather some data too so they
can start end to end credit process. This step can be called Credit Initiation
 Data that have to be collected from debtor candidate are:

Individual
1. Identity Document, such as
ID Card, NPWP, KK, Marriage certificate
2. Legality Document, such as
SIUP, TDP, Domicile
3. Financial Document, such as
Financial statement, Copy of bank statement, Sales report, Inventory report
4. Collateral document, such as
SHGB/SHM, IMB, PBB, Insurance policies
Corporate
1. Identity Document, such as
ID Card, Deed of Incorporation and latest amendment, NPWP, SK Menkeham
2. Legality Document, such as
SIUP, TDP, Domicile
3. Financial Document, such as
Financial statement, Copy of bank statement, Sales report, Inventory report
4. Collateral document, such as
SHGB/SHM, IMB, PBB, Insurance policies

Another than personal data documents, RM should get another supporting document
from debtor candidate such as loan request application form, list of major supplier and buyer
and company profile. After collected, this document will ensured by RM to make sure the debtor
candidate meet the requirement and documents are not false document before further process.

B. Evaluation Process

After data collected, the data will be evaluated through Quantitative, Qualitative and
Collateral analysis to analyze debtor candidate profile and mitigate possible risks from loan.

1. Quantitative analysis
This type of analysis used to define debtor personality from their track record and their
relationship with their colleagues. Other than debtor personality, this kind of checking can
be use to determine debtors business potency towards the markets. In this analysis, there
some type of checking which usually used. Those checking are:
a. BI Checking is a checking which provided from Central Bank of Indonesia ( Bank
Indonesia). This checking required to know collectability level, type of facility they had
and to know whether debtor listed as DHN or not in CIMB Niaga itself or another bank.
Beside of BI Checking, CIMB Niaga also provide one type of checking which called Bank
Wide Credit Checking System (BWCCS) Checking. BWCCS provide track record of debtor
candidate which kept by CIMB Niaga.
b. Trade Checking used to assess debtor business from their trading relationship. Trade
checking can be checked from their buyer, supplier and competitors.
 c. Community checking is used to assess debtor personal towards debtor community such
as debtors friends and competitor.
d. Market checking used to asses debtors item or services towards market. This checking
can be used to verify sales number claimed by debtors.
e. Field investigation used to verify debtors work location corresponded certificate and
work activity corresponded debtors claim.

2. Qualitative Analysis
This kind of analysis used to asses companys financial strength and growth. Financial
strength can be showed from their financial statement and balance sheet. All data from
financial statement and balance sheet will processed with spreadsheet to calculate financial
ratio and cash flow projection. From spreadsheet, bank will get information about debtor
candidates current financial position, financial growth and prediction of their future
performance. RM can determine debtor candidate Working Investment (W/I) needs from
their financial position and prediction of business future performance. Another than needs,
RM can determine debtors candidate capability to pay their debt and responsibility to bank.

RM can analyze debtors bank statement to verify debtor transaction of sales as claimed
by debtors. From debtor transaction, bank also could get information about debtors
transaction behavior, buyer and supplier data.

3. Collateral Analysis
To mitigate risk when debtors default, bank has to obtain guarantee from debtor. When
debtors cant afford to pay their responsibilities and loan, bank will claim debtors guarantee
as last source of payment. This guarantee called collateral. Collateral can be divided into
main collateral and additional collateral. Main collateral that approved in CIMB Niaga are
Cash Collateral and Real Estate Collateral. Cash form that can be used as collateral are Cash
Deposit and Time Deposit.
In CIMB Niaga, there 3 kind of collateral which approved based on type of guarantee
item and value. Those collaterals are:
a. Fully Secure : 100% cash collateral value from loan value
b. Secured : more than 125% Real estate value from loan value
c. Unsecured : less than 125% real estate value from loan value

Another than cash and real estate, vehicle, machinery, inventory, receivable and
Personal/Corporate guarantee only can be used as additional collateral according to CIMB
Niaga rules. Value of collateral can be assessed by ordering assistance of KJPP through CCA
(Checking Collateral Analysis).

C. Approval Process
Data that already obtained will be analyzed and poured into Credit Proposal (CP).
Usually CP will contain short information about debtor and related party, type facility, credit
 structure, covenants, Condition of Precedence (COP) and Collateral details. Another than Credit
Proposal, there is remarks that contain explanation and justification of our CP application start
from background credit facility and structure, collateral condition, history of debtors business
until last performance of debtors business.
CP application will be helped by Business Credit Team (BCT) to complete CP remarks
before CP reviewed by reviewer.

D. Disbursement Process

Loan will be disbursed after every document that needed to be accepted, already accepted by
related division. Related divisions are Legal Division and Credit Administration Division.

If loan already approved by reviewer and business unit, the next step that RM must do is
contacting debtor to inform their application decision. This information will be poured into
Offering Letter (OL) that contain credit structure, total plafond, interest, administration &
provision fee, collateral, covenants etc. If debtor agreed, RM will make offering letter and
conduct legal signing. And if debtor disagreed with decision of approved credit, debtor can issue
Memo Banding via RM so debtor and reviewer can reach win-win solution for both parties.

After debtor and reviewer reach final decision, OL that already approved by reviewer and signed
by debtor will submit to Legal Division through BCS. OL will be use to as base to create
Perjanjian Kredit (PK) draft. After draft PK was made, debtor and RM will meet notary to make
collateral binding assurance and PK signing. When binding assurance still in processed by notary,
notary will issue covernote which contain due date of binding assurance process will be finish.
Covernote will act as substitute for binding assurance document as long as it processes.

After legal drafting and signing process, the all document will submit to Compliance division.
Document will be checked by this division to make sure that document already comply with
regulation before the release Nota Pembukuan Pinjaman (NPP). NPP will be forwarded to Loan
Operation division to making place for disbursement.

LDSK (Loan Document Safe Keeping) division will issue document accepting receipt as one
requirement for disbursement.

E. Maintenance Process

After all of credit process completed, RM duty is doing maintenance to maintain relationship
between bank and debtor and monitoring loan that have been given. RM must visit debtor at
least twice a year and visit their collateral at least once a year. In the end, main objective of this
process is to make debtor to take credit for a long time.