Peer-to-Peer (P2P) Fintech Lending Hits Rp 13 Trillion

The emergence of peer-to-peer (P2P) lending fintech provides an alternative for people needing funding, eliminating the need to go to a bank. Fintech P2P lending, or financial service providers based on applications, are now widely used by the public to seek financing for businesses or consumer goods purchases. However, the loan amount must be adjusted to the borrower's repayment capacity to avoid being trapped by fintech with high interest rates.

The growth of P2P lending fintech in Indonesia has been quite rapid this year. This is reflected in the 360% increase in loan disbursement to Rp 13.83 trillion at the end of September 2018 compared to the beginning of the year. This amount consists of loans in Java (Rp 11.57 trillion) and outside Java (Rp 2.27 trillion).

By the end of the third quarter of this year, the number of borrower accounts reached 2.3 million, comprising 1.97 million accounts in Java and 331,000 accounts outside Java. Meanwhile, there were 4.7 million lender accounts. The ratio of performing P2P lending fintech loans (within 30 days) reached 96.73% of the total loans. The ratio of non-performing loans (30-90 days) was 2.07%, and the ratio of non-performing loans (>90 days) reached 1.2%.