Peer To Peer Lending In Indonesia
Peer-to-Peer Lending, also known as P2P Lending, is one of the fastest growing financial services in Indonesia. OJK data said, the growth of the number of lenders in P2P Lending grew by around 603% and the number of borrowers was around 581%. Does this mean P2P Lending can be a new investment opportunity?
For most people, investment is a foreign thing. They tend to prefer to save rather than invest because they are afraid of the risks faced. In fact, investment is one way to make financial conditions in the future more directed and guaranteed.
Actually, you can determine what investment is suitable. This can be seen from how much profit is obtained and how much the risk is. Especially nowadays it is very easy to find out more information about this investment. One of them, regarding investment in P2P Lending.
What is P2P Lending?
Peer to Peer Lending (P2P Lending) is a new way of providing loans, where between lenders and borrowers are met in an online platform. Peer to Peer Lending (P2P Lending) allows everyone to give loans or apply for loans without the need for difficult conditions and long processes, as has been the case with traditional financial institutions.
Basically, this P2P Lending system is a new investment opportunity for investors who want to allocate their money into investments in the form of short-term cash loans, and within a certain period they (investors) will get a reward for the money they invest. Not only that, the P2P Lending system can also make people’s lives better by providing access to financial institutions, so that people can borrow money according to what they need in an easy way.
Thus, there is no gap or underserved segment, namely the funding / credit gap for the community or Micro, Small and Medium Enterprises (MSMEs). According to the OJK, in Indonesia, segments that are not served by traditional financial institutions such as banks are Rp900 trillion per year. This reflects the real need in the community to get loans in an easy and not difficult way.
How does it work?
P2P Lending system is done with an online platform so that it is managed transparently and efficiently, where lenders and borrowers are connected directly in a container or marketplace. In a P2P Lending system, there are two parties, lenders and borrowers, so the P2P Lending system works in two different ways.
As a lender, the first thing you have to do is register to create an account as an investor. Then fill in your account balance by transfer. After that, manage your money by determining the type of loan that you want to include in some loan products provided by the platform. The borrower also receives funds from you, according to the time period chosen, you also get rewards for the funds lent.
As a borrower, you can simply fill out the application form online and include your KTP number. Then if the loan is received, the loan application will be entered into the marketplace provided so that all lenders can see your submission. If approved, you will receive funds directly to the account already registered in the marketplace.
Admittedly, P2P Lending is the right tool for those of you who want to get a personal loan quickly. As an investor, P2P Lending is a means to allocate funds as needed.