Without a doubt about tiny loans to

FROM being called ‘worse than loan sharks,’ to more basic reviews stating that it’s nearly impossible to have a loan through the web web site, UangTeman is surviving, as well as, apparently thriving.

Talking recently to Digital Information Asia (DNA) in Jakarta, its cofounder and ceo Aidil Zulkifli (pic above) admits as a free promotional tool that he struggled with the bad publicity at first, but managed to use it.

“We are actually nine months old, operating fast and doing pretty much. Being a startup, you shouldn’t be scared of bad press; you merely should find out just how to handle it,” he claims.

UangTeman, or ‘Friend’s Money’ in English, began operations in 2015, and has been growing 20% to 25% month-on- month since, according to Aidil april.

The economic solutions technology (fintech) startup dispenses pay day loans to individuals in need of assistance: Little, short-term loans to greatly help borrowers endure with regards to their day-to-day requirements until their next paycheque.

Borrowers usually takes as much as no more than Rp2 million (US$148.60) and at the least Rp1 million (US$74.20) the time that is first but they are charged a 1% rate of interest a day for the following 18 to 25 times.

Even though many start to see the 1% day-to-day interest as an excessive amount of, Aidil argues that this is basically the only fee that clients need to deal with – there are no management or processing costs.

He keeps the attention price is “relatively okay” compared aided by the danger the faces that are startup day.

“We aren’t a bank; we usually do not gather funds from individuals. The funds we provide to the clients arises from our own ‘friendly’ pockets,” declares the Singaporean-born lawyer that is former.

He additionally stresses that UangTeman just isn’t contending using the banking institutions, however with the mortgage sharks and casual loan providers in the marketplace.

“The loan roof will increase to Rp3.5 million (US$260) additionally the rate of interest is certainly going down once the debtor shows credit that is good and has now borrowed several times currently.

“The most of individuals in Indonesia are surviving from paycheque to paycheque; like a friend if they need extra money, UangTeman will be there for them.

“It is focused on making a large impact – it is about building a small business where regarding the one hand, you may make cash, yet on the other side, you could make an optimistic effect on society,” he adds.


the primary challenge for just about any financing company is an extensive back ground check regarding the borrower that is potential. UangTeman depends on technology because of this type or sorts of research, relating to Aidil.

“We have actually our very own technology and algorithms that may perform some background that is initial utilizing lots of information points,” he adds.

While stressing that security and privacy will also be crucial for the company, he argues that keeping a decreased standard of non-performing loans could be the objective. As well as in this, UangTeman relies heavily regarding the technology this has built.

Customers will see down whether their application is authorized or otherwise not immediately. if you are authorized, UangTeman’s operations group shall continue steadily to monitor to make certain there’s no fraudulence.

“Once everything is approved, clients will get the funds in their bank reports in three to a day,” Aidil promises.

Although the loan quantity will not seem like much, this indicates to match the needs of the mark market UangTeman is serving.

From the interior study, 30% of the customers are micro companies; 25% make use of the loan for academic function; and around 20% make use of it to pay for medical center and medical bills, based on Aidil.

Back again to principles

The theory behind UangTeman would be to provide under-banked individuals use of financial loans, particularly to tiny and short-term loans that may provide their fundamental and day-to-day requirements.

“The marketplace is simply those who usually do not very own charge cards. They’ve fundamental bank reports, however the banking institutions aren’t lending them cash simply because they carry a risk that is high” says Aidil.

A current credit file on MSMEs (micro, tiny and medium enterprises) by industry regulator Bank Indonesia revealed that MSME loans take into account 18.5percent of banking institutions’ total credit distribution.

But regarding the total that would go to MSMEs, medium loans constitute 48.1%, tiny loans have 28.5% share, and micro loans constitute 23.5%. By Bank Indonesia’s meaning, a micro loan is certainly one without any practical minimum as much as no more than Rp50 million (US$3,718).

Sustainable business design

Although UangTeman has guaranteed an undisclosed seed-funding round from investors such as Alpha JWC Ventures, Aidil claims the business enterprise model is sustainable and therefore the startup might survive without relying greatly on such outside opportunities.

However the seed investment could be necessary to measure its operations and reach more towns and suburbs within the national nation, also to open a minumum of one contact centre workplace in each town it runs in.

“We happen earning profits from Day One, with this very first clients, and I also think this will be additionally exactly exactly just what attracted our investors,” Aidil claims.

He also contends that the investors had been keen to spend in UangTeman because he could be maybe not from the services that are financial.

“If you need to change and disrupt the economic solutions industry, you have to result from the exterior, in my opinion.

“That means, it will be easy to see various ways to produce the exact same services and products; interruption can occur whenever we cross each industry that is other’s” he adds.

Aidil claims that UangTeman would probably pursue Series-A money early the following year, claiming it currently has investors ready.

The program now could https://badcreditloans4all.com/payday-loans-mo/aurora/ be to coach the marketplace, particularly folks from residential district areas, in addition to to start a contact centre workplace in western Java.


Leave a Reply