REPUBLIKA.CO.ID, DENPASAR -- The country's largest lender PT. Bank Mandiri said it hopes to increase housing credit (KPR) to around Rp1 trillion in Bali and Nusa Tenggara this year after cutting KPR interest rate to 8.5 percent from 10.5 percent earlier.

The target is 12 percent higher than KPR last year, Regional Chief Executive Officer for Bali and Nusa Tenggara of the state bank Maswar Purnama said here on Tuesday.

Mazwar said he was optimistic the target could be reached with Bali having the largest portion of 60 percent, with West Nusa Tenggara accounting for 30% and East Nusa Tenggara for 10% .

The bank cut its interest rate on KPR after the central bank slash its benchmark interest rate to 6.75 percent.

He said the bank has established cooperation with a number of developers having good reputation.

"We cooperate only with developers having good track record in Bali and Nusa Tenggara," he said.

The types of houses entitled to credits with annual interest rate of 8.5 percent are middle class houses valued at Rp500 million to Rp700 million each, he said.

In addition to lower KPT interest rate, an agreement has been reached with partners to cut the fee for notary deed and insurance.

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