A Multifinance Car Loan Quotes 10.5% and a Bank Quotes 7%. The Real Gap Is Bigger Than 3.5 Points
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5 min read
You find a car for Rp200 juta. The dealership offers a car loan through a multifinance company at 10.5% a year. Your bank says 7%. The gap looks like 3.5 points. It is not. The two numbers are measured in different ways, and the real gap is far wider.
Here is the worked example, so you can check any quote yourself.
A multifinance company is a lender that is not a bank. In Indonesia, many car loans are arranged through one at the dealership. These lenders commonly quote a flat rate (bunga flat). Banks commonly quote an effective rate (bunga efektif), according to a KKB guide from Richify updated June 2026.
Here is the difference.
Think of it this way. After 18 months you owe about half the loan. A flat rate still charges interest as if you owed all of it. An effective rate does not.
So a flat number and an effective number cannot be compared directly. The same percentage means a much higher cost when it is flat.
We use a Rp200 juta loan over 36 months, paid monthly. Both lenders quote the same loan. Only the method differs.
Option A, multifinance at 10.5% flat. IAF Multi Finance lists 10.5% flat for 36 months on its used car loan page at Cermati. The page is undated, so treat it as an example of a typical quote, not today's offer.
Option B, bank at 7% effective. Richify puts bank rates at roughly 5% to 9%. We pick 7%, the middle of that range, for illustration. Your own offer will differ.
| Multifinance, 10.5% flat | Bank, 7% effective | |
|---|---|---|
| Monthly payment | Rp7.305.556 | Rp6.175.419 |
| Total interest over 36 months | Rp63.000.000 | about Rp22.300.000 |
| True yearly rate | about 18.7% | 7% |
The multifinance loan costs about Rp40,7 juta more in interest. That is the price of a decent second-hand motorbike, paid for the same car.
Even if the bank offers 9% effective, the gap is still about Rp34 juta. These figures are my own arithmetic from the stated rates, not published offers.
The true yearly rate of 10.5% flat over 3 years is about 18.7%. To get it, find the rate at which the monthly payments of Rp7.305.556 repay exactly Rp200 juta over 36 months.
That calculation is the same one behind the earlier post on the real cost of paylater. Here is a quick conversion for a 3 year tenor. These are my calculations, rounded to one decimal.
| Flat rate | Equivalent effective rate |
|---|---|
| 5% | about 9.3% |
| 6% | about 11.1% |
| 8% | about 14.5% |
| 10.5% | about 18.7% |
| 12% | about 21.2% |
A handy rule: for a 3 year loan, the effective rate is roughly 1.8 times the flat rate. Richify gives a similar check for a longer loan: 6% flat over 5 years is about 11% to 12% effective.
If it costs more, why is it so common? Because it solves other problems.
These are real benefits. The point is to know what you pay for them. A faster approval that costs Rp40 juta is a decision, not a default.
Interest rates move with the central bank. Bank Indonesia held its policy rate at 5.75% at its September 2026 meeting, according to Kabarbursa. When it moves, bank loan rates tend to follow. Track it on the NetWort macro page.
A car loan is a monthly promise for three or more years. Before you sign, see what it does to the rest of your money. Open your NetWort Dashboard, add your income, savings and existing debts, and check whether the Rp6 juta or Rp7 juta payment still leaves room to keep investing.