Category: Notary Services
Written by Riska Destriyanti on 22/01/2023
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

When we need additional capital for our businesses and seek funding from banks or other financial institutions, we will have to deal with many different types of agreements such as credit agreements, debt acknowledgment, or debt securities. Drafting and understanding such legal documents might be a daunting task for those without legal background.

Our professionals can help prepare and review all agreements and provide explanations to you so that you can measure the risk and understand all legal consequences of the agreements. Together with our team from the tax and finance department, we can also advise on the tax consequences that may arise from those agreements.

Table of Contents

What are Banking Services?

Bank is a business entity that collects funds from the public in the form of savings and distributes them to the public in the form of credit and/or other forms in order to improve people’s standard of living. 

Commercial banks are banks that carry out business activities conventionally and/or based on sharia principles. Their activities mostly provide payment services. They also provide credit to customers who need funds for various reasons such as business capital, home renovation, health, education, daily necessities, etc. 

Credit is the provision of money or bills based on a loan agreement, or an agreement between a bank and another party that requires the borrower to repay the debt within a predetermined period of time. 

In general, the types disbursed by a commercial bank can be grouped based on their use, purpose, term, and business sector. The types of loans provided by the Bank are as follows: 

  1. Investment Credit

    Loans granted by the Bank for the purposes of expanding or developing a business, such as building a new project, building a new factory, or other purposes.

  2. Working Capital Credit

    This loan is provided by the Bank for the purpose of increasing the production operations capability of a company. For example, the loan may be used to buy raw materials, pay for employee efforts, or pay other costs related to the company's production operations.

  3. Productive Credit

    This credit is provided by the Bank to increase the business sector related to production or investment. This credit is given by the bank to produce goods or services.

  4. Consumer Credit

    This credit is provided by the Bank for personal or institutional consumption. This credit does not produce products or services but consumes products or services on the market. Examples of common consumer credits include housing loans used to buy a house, consumer credit used to buy motorized vehicles, or household credit used to buy furniture.

  5. Trade Credit

    This credit is granted by the Bank for the purpose of buying commodities or goods to be traded or resold. Payment of debt is expected from the sale of merchandise. This credit is given to suppliers or trading agents who buy products or goods in relatively large quantities. For example, export-import credit for trades that carry out export-import transactions.

Different Types of Deeds in Banking Services

Deeds required during the credit application process at the Bank: 

  1. Bonds

    An agreement made between the creditor and the debtor which contains the loan amount, interest, provisions, guarantees, as well as the terms and conditions regarding the credit agreement.

  2. Power of Attorney to Encumber Mortgage Rights

    The power given by the Debtor to the Creditor. It allows the creditor to do everything related to the guarantee, both for the process of granting mortgage rights over the guarantee as well as for signing all related documents.

  3. Deed of Granting Mortgage Rights

    Regulates the terms and conditions regarding the granting of Mortgage Rights from Debtors to Debtors in connection with debts guaranteed by Mortgage Rights. The granting of this right is intended to give priority to the creditor concerned.

  4. Deed of Conformity

    This deed relates to debt securities, where this adjustment is made if there is an additional credit facility taken by the Debtor.

  5. Personal Guarantee

    This personal guarantee is made if an agreement is given based on the Debtor’s wealth or his personal guarantee. If in the future the Debtor cannot pay his debts, the Debtor's personal assets or his guarantee can be used to pay off the debt.

  6. Company Guarantee

    This company guarantee is the same as a personal guarantee. The only difference is that what is guaranteed is the company's assets. The company's wealth will be used to pay off the debtor's debt if he cannot pay off his debt.

  7. Deed of Fiduciary Guarantee

    This fiduciary deed is used if the guarantee provided by the debtor is in the form of movable objects such as cars, motorcycles, and other movable objects. This fiduciary guarantee must also be registered with the Ministry of Law and Human Rights of the Republic of Indonesia.

When Do You Need Deeds in Banking Services?

We need these deeds if we are going to apply for credit to the Bank. The deed is prepared by a Notary from the Bank, prepared after the documents are complete. 

The documents needed for the credit application process at the Bank are:

  • If the debtor is an individual:
    • KTP
    • KTP of the Debtor’s wife or husband, if applicable
    • Family Card
    • Marriage Certificate, if applicable; and
    • proof of collateral ownership.

  • If the Debtor is a company:
    • KTP of Directors and Commissioners;
    • Shareholder Approval;
    • company deed and permits; and
    • proof of collateral ownership.

After the document is complete, the Bank must provide other supporting documents from the Bank, such as an order list containing the estimated price of the guarantee provided by the Creditor and a credit certificate containing the loan amount, interest, fees, and other provisions. Afterwards, the Notary can make a Debt Letter according to the data provided by the Bank. 

Not only the Notary, the Deed related to the guarantee should also be provided by the Debtor. If the Debtor guarantees a land certificate, the Notary will also prepare a Power of Attorney for Imposing Mortgage Rights or commonly abbreviated as SKMHT. This SKMHT will be signed together with the Debt Letter. Before that, the Notary will check the certificate to find out whether the land is clean without any disputes, is being guaranteed at another bank, and so on. 

After the SKMHT is signed, within a maximum period of 30 days, the Notary will proceed with the Mortgage Imposition process. The notary will make a deed of imposition of mortgage rights or abbreviated as APHT. This deed is sufficient to be signed by the Bank only, because the Debtor has authorized the Bank to sign everything including the Deed, which is explained in the SKMHT. 

After signing the APHT, the Notary will register the Mortgage on the land at the Land Office in accordance with the collateral object.  

If the guarantee provided is not a land certificate, but a movable object such as a car, motorcycle or other movable property, then the Deed to be made by a Notary is a Deed of Fiduciary Guarantee. This Fiduciary Guarantee Deed will be signed together with the Notes, and after signing the Fiduciary Guarantee will be registered with the Ministry of Law and Human Rights of the Republic of Indonesia. 

Why Do You Need Deeds in Banking Services?

Borrowing money from banks does not seem like a taboo and complicated thing. With the intense competition between banks, all the conveniences regarding terms and processes have been provided to prospective debtors so it would be easier to obtain loans. 

Loans submitted to the Bank are usually used by the Debtor for consumptive needs, daily needs, business capital, and so on. The advantages of applying for a loan at the Bank are as follows: 

  • provide convenience
  • utilize various types of loans
  • no interference from the bank with the business run by the Debtor
  • low interest
  • safe collateral

The bank deeds include authentic deeds, which have 3 types of powers, namely: 

  1. Strength of formal proof

    Proof between the parties that they have explained what is written in the deed;

  2. Strength of material evidence

    proof between the parties that the event actually occurred; and

  3. Binding strength

    proof between the parties that on the date mentioned in the deed, the concerned parties has appeared before the Notary and explained what was written in the deed.

These deeds have an important role, because they have the power of proof to third parties, which is not owned by private deeds. If applying for credit at the Bank without these deeds, both Creditors and Debtors can be harmed either by third parties or other parties. 

How We Can Help

We can provide notarial services to you, both as a Debtor or Creditor, to make the deed or letters needed for your credit application. We also have competent consultants in the banking sector who can help you if you need an opinion for either in applying or other matters related to credit. 


After giving the documents, the bank will first process these documents and the bank will provide an order list to the notary to check your guarantee and provide information on what deeds should be made. 

If your guarantee is a land certificate, the notary will check the certificate, then make a debenture and a letter imposing mortgage rights. Each guarantee may have a different deed.

We are unable to give an exact time, but we can inform you about the estimation after we receive complete documents from the Bank. 

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