Without a doubt about Little loans to

Without a doubt about Little loans to

FROM being called ‘worse than loan sharks,’ to more basic reviews stating that it really is extremely difficult to have that loan through the web web site, UangTeman is surviving, and even, apparently thriving.

Speaking 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 well. As a startup, you must never be afraid of bad press; you merely should try to learn 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 monetary solutions technology (fintech) startup dispenses pay day loans to individuals in need of assistance: Little, short-term loans to greatly help borrowers endure for his or her day-to-day requirements until their next paycheque.

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

Even though many look at 1% day-to-day rate of interest as an excessive amount of, Aidil contends that here is the only fee that clients need to deal with – there are no management or processing charges.

He keeps the attention price is “relatively okay” compared utilizing the risk the faces that are startup day.

“We aren’t a bank; we usually do not gather cash from individuals. The amount of money we provide to your clients originates from our personal ‘friendly’ pockets,” declares the Singaporean-born lawyer that is former.

He additionally stresses that UangTeman is certainly not contending because of the banking institutions, however with the loan sharks and informal loan providers in industry.

“The loan roof will increase to Rp3.5 million (US$260) plus the interest is certainly going down whenever debtor shows credit that is good and it has lent several times currently.

“The almost all individuals in Indonesia are surviving from paycheque to paycheque; when they require more money, UangTeman are going to be there for them, like a buddy.

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


the key challenge for just about any financing company is a comprehensive background check associated with prospective debtor. UangTeman depends upon technology with this type or sort of homework, relating to Aidil.

“We have actually our personal technology and algorithms which will perform some background that is initial utilizing plenty of information points,” he adds.

While stressing that security and privacy will also be crucial for the company, he contends that keeping a level that is low of loans may be the objective. As well as in this, UangTeman relies greatly regarding the technology it offers built.

Clients will discover down whether their application is authorized or otherwise not instantly. If you are approved, UangTeman’s operations group shall continue steadily to monitor to make certain there’s absolutely no fraud.

“Once everything is authorized, clients will get the amount of money within their bank records in three to a day,” Aidil promises.

Although the loan quantity will not appear to be much, this indicates to suit the requirements of the mark market UangTeman is serving.

From the interior study, 30% of their clients are micro business people; 25% make use of the loan for academic function; and around 20% utilize it to spend medical center and medical bills, in accordance with Aidil.

Returning to basics

The concept behind UangTeman would be to provide under-banked individuals usage of lending options, particularly to tiny and short-term loans that will provide their fundamental and day-to-day requirements.

“The target audience is simply those who usually do not credit that is own. They have fundamental bank reports, nevertheless the banking institutions aren’t lending them cash since they carry a high risk,” says Aidil.

A current credit file on MSMEs (micro, little and medium enterprises) by industry regulator Bank Indonesia indicated that MSME loans take into account 18.5per cent of banking institutions’ total credit circulation.

But associated with total that would go to MSMEs, medium loans make up 48.1%, tiny loans have 28.5% share, and micro loans constitute 23.5%. A micro loan is one with no practical minimum up to a maximum of Rp50 million (US$3,718) by Bank Indonesia’s definition.

Sustainable enterprize model

Although UangTeman has guaranteed an undisclosed round that is seed-funding 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 assets.

Nevertheless the seed investment could be had a need to measure its operations and achieve more metropolitan areas and suburbs within the national nation, also to start a minumum of one contact centre workplace in no credit check payday loans in Elmira each city it runs in.

“We have now been money that is making Day One, with your very very first clients, and I also think this is certainly additionally just exactly what attracted our investors,” Aidil claims.

He additionally contends that the investors were keen to spend in UangTeman because he could be perhaps maybe perhaps not through the economic services industry.

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

“That means, you are able to see other ways to supply exactly the same items; interruption sometimes happens once we cross each other’s industry,” he adds.

Aidil claims that UangTeman would likely pursue Series-A money year that is early next claiming it currently has investors prepared.

The program now could be to coach the marketplace, specially individuals from residential district areas, along with to start a contact centre workplace in western Java.