Pintek expects education loan applications to peak next month

Eisya A. Eloksari (The Jakarta Post)

Jakarta ●
Thu 27 Aug 2020

2020-08-27
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Peer-to-peer lender Pintek predicts it will see an increase in applications for education loans in September as public universities announce acceptances.

Company co-founder and CEO Tommy Yuwono said private universities in Indonesia will open their second phase of enrollment for the start of the 2020 school year during the same period.

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“Unlike other peer-to-peer lenders, most of our loan applications are cyclical based on the start of the new school year, which is around August and September,” he said in an interview. with Jakarta Post Tuesday.

“This is because people prioritize spending on education even when other spending is down,” Tommy said, adding that the company has shelled out 70 billion rupees (US $ 4,772) since its inception. in 2018.

He added that Pintek raises money from banks, financial institutions and family offices, while other peer-to-peer lenders typically implement a crowdfunding model.

“This is because the tuition has to be paid in full, otherwise the student cannot continue with his studies. This model is different from corporate borrowers from other peer-to-peer lending platforms who can still execute their project even if they don’t reach full funding, ”he said.

Pintek is offering a loan of up to 300 million rupees to pay for tuition fees for schools, universities and informal education and training. Borrowers repay their loans in installments of six to twelve months with an interest rate of 2%.

The company also offers working capital loans, bill finance for educational institutions, and is a payment partner for private schools and universities.

Also read: Strong human resources can improve Indonesia’s economic growth, says Jokowi

Tommy said most borrowers pay college tuition with the funds and 80% of borrowers are parents of students as the borrower needs to have a monthly income of Rs 3million to be eligible for a loan. .

Pintek plans to launch a new product next month called Pinjaman Pendidikan Instan (Instant Education Loan) to enable borrowers to pay for education needs beyond tuition, such as books and educational programs. ‘additional studies.

“We are also in the process of obtaining a permit from the Financial Service Authority (OJK) to create a Sharia-based product, which hopefully can be launched next year,” Tommy said, adding that the Sharia Compliant Loan Option Would Create An Opportunity For Pintek To Partner With pesantren (Islamic boarding schools) and Islamic universities.


Maria J. Book