Document background
The Private Home Loan Contract serves as a fundamental legal instrument in Indonesian private lending, specifically designed for situations where individuals seek home financing outside traditional banking channels. This document, governed by Indonesian law including the Civil Code (KUHPerdata) and relevant OJK regulations, establishes a legally binding relationship between private lenders and borrowers. It's particularly relevant in cases where traditional mortgage financing is not available or desired. The contract includes comprehensive provisions for loan terms, security arrangements through Hak Tanggungan, repayment schedules, and default procedures. It's essential for protecting both lender and borrower interests while ensuring compliance with Indonesian property and lending regulations. The document should be executed before a notary public and properly registered to ensure enforceability.
