Legal Force of Private Credit Agreements at Bank Perdreditan Rakyat (BPR)

The purpose of this research is to analyze (1) the regulation regarding credit agreements that made privately according to the Banking Law and the Role of Notary Law (2) the legal force of credit agreements made privately at Bank Perkreditan Rakyat (BPR). The research method used is normative legal research. The results of the study show (1) Arrangements regarding credit agreements made underhand according to Banking Law both the Banking Law and Bank Indonesia Circular Letter No.14/20/DKBU concerning Guidelines for Credit Policies and Procedures for Bank Perkreditan Rakyat (BPR) which require banks to provide credit in any form, they are required to use/make a written credit agreement, whereas according to the Law on Notary Offices, even though private credit agreements have been made in written form, however, to increase the strength of evidence, the private credit agreement must be ratified/legalized by a notary; and (2) The legal force of the credit agreement made privately at the BPR binds the parties, both the bank and the borrowing customer.