Ahead of Ramadan, Disbursement of P2P Lending Fintech Loans Grows 40.67%

The Financial Services Authority (OJK) reported that the disbursement of peer-to-peer (P2P) lending fintech loans reached Rp23.07 trillion (approximately US$1.5 billion) in March 2022, just before Ramadan. This figure represents a 40.67% increase compared to the previous month's Rp16.40 trillion.

Disbursement of fintech lending loans in March 2022 even increased by approximately 96.17% compared to the same period the previous year. In March 2021, fintech lending disbursement was recorded at Rp11.76 trillion.

Fintech lending loans were disbursed to 17.02 million borrowers in March 2022. The number of borrowers grew by 33.38% compared to the previous month. The majority, 13.50 million borrowers, were from the Java region.

Rp8.60 trillion (approximately US$560 million) or 37.28% of the loans were allocated to the productive sector. Of this amount, Rp3.48 trillion was lent to the wholesale and retail trade sector.

Loans disbursed to the agriculture, forestry, and fisheries sectors reached Rp184.38 billion (approximately US$12 million). Meanwhile, loans to the processing industry were recorded at Rp104.45 billion (approximately US$7 million).

From the lender's perspective, the number of lenders reached 10.99 million entities with a value of Rp22.83 trillion (approximately US$1.5 billion). Collaboration in loan disbursement by institutional lenders ("super lenders") during this period contributed Rp3.16 trillion (approximately US$200 million) from 263 conventional financial institutions.