Little Loans To Tide You Over Till Payday

FROM being called ‘worse than loan sharks,’ to more neutral reviews stating that it is almost impossible to get a loan from the website, UangTeman is surviving, and undoubtedly, apparently prospering.
Speaking recently to Digital News Asia (DNA) in Jakarta, its cofounder and primary executive officer Aidil Zulkifli (pic above) confesses that he had a hard time with the bad promotion at initially, but managed to use it as a complimentary advertising tool.
“We are now 9 months old, running quickly and doing quite well. As a start-up, you need to never be scaredhesitate of bad press; you just need to learn ways to handle it,” he says.
UangTeman, or ‘Pal’s Cash’ in English, started operations in April 2015, and has been growing 20 % to 25 % month-on- month given that, according to Aidil.
The monetary services technology (fintech) startup gives payday loans to individuals in requirement: Small, short-term loans to helpto assist customers make it through for their day-to-day requirements until their next paycheque.
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Debtors can use up to a maximum of Rp2 million (US$ 148.60) and a minimum of Rp1 million (US$ 74.20) the firstvery first time, however are charged a 1 % interest rate per day for the next 18 to 25 days.
While lots of see the 1 % daily rate of interest as excessive, Aidil argues that this is the only charge that customers need to deal with – there are no administration or processing fees.
He maintains the interest rate is “reasonably okay” compared with the risk the startup deals with every day.
“We are not a bank; we do not gather cash from individuals. The cash we provide to our clients comes from our own ‘friendly’ pockets,” proclaims the Singaporean-born former legal representative.
He also stresses that UangTeman is not competing with the banks, however with the loan sharks and informal lenders in the market.
“The loan ceiling will enhance to Rp3.5 million (US$ 260) and the interest rate will decrease when the borrower shows excellent credit behaviour and has obtained a couple of times already.
“The bulk of people in Indonesia are surviving from paycheque to paycheque; if they require extra cash, UangTeman will be there for them, like a good friend.
“It is everything about making a huge effect – it has to do with constructing a company where on the one hand, you can make money, yet on the other, you can make a favorable impact on society,” he includes.
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