Home music industry Pintek launches rapid loan product to help finance education during pandemic – business

Pintek launches rapid loan product to help finance education during pandemic – business

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Eisya A. Eloksari (The Jakarta Post)

Jakarta ●
Thu 15 October 2020

2020-10-15
16:49
258
e22cd4161040e111d73a5626c4b19c1b
1
Business
Pintek, start-up, Education, pandemic, COVID-19
Release

Education-focused peer-to-peer lender Pintek on Thursday launched a quick loan product to help students and parents raise funds during the pandemic.

The product, called Pintek Instant, allows borrowers to access loans of up to 5 million rupees ($ 339) with an approval time of one hour and repayment over a period of up to three months.

Company CEO Tommy Yuwono said the COVID-19 pandemic had resulted in pay cuts or time off for parents, making it difficult for them to pay for their children’s school needs.

“This product is intended to help students pay for tuition, books, gadgets, and phone credit, among other things, to help them learn from home during the pandemic,” he said during the pandemic. ‘a press briefing.

He went on to say that the company aims to have 5,000 new borrowers using the product over the next six months.

However, Tommy said the product can only go to partner schools because Pintek will transfer the money directly to the educational institution.

“We don’t want Indonesian students to be left behind in school because of this pandemic, which is why we want to ease payments for education,” he said.

The company said it has disbursed Rs 70 billion in loans to more than 3,000 borrowers since its inception in 2018.

In September, Pintek said its non-performing loan (NPL) ratio was around 0.1%, well below NPL’s overall ratio in the fintech industry, which fell to 7.99% in July due to lower borrower income.

Read also: Regulators and FinTech Companies Strive to Balance Innovation and Regulation

Tommy went on to say that Pintek had tightened its credit scoring system and proposed a loan restructuring to avoid bad debts. So far, less than 10 borrowers have requested the restructuring, he added.

Tiar Sidabutar, head of legal and compliance management of the Indonesian Peer-to-Peer Funding Association (AFPI), said as the NPL increased, the number of lender transactions increased by 12 million as of July through August, signaling market confidence in P2P lending. .

“There are still only a few fintech players for the education sector, I hope we will see more companies enter the scene and more borrowers will discover this type of financial service,” he said. -he declares.