P2P Lending Overview and Its Influence for the Future of Indonesia

P2P Lending Overview and Its Influence for the Future of Indonesia

In modern times today having no capital is an unacceptable reason for those who want to run a business and to grow a business. There are many ways for entrepreneurs including SMEs to get capital. For those of you who are still hesitant to apply for a bank loan with interest and complicated terms, there are alternatives that can be your way into success, with peer to peer lending or P2P lending. This new financial technology platform connects directly between the lender (investor) and the borrower (borrower) through the peer to peer lending platform.


The advantage for investors is that they can provide business loans to truly qualified borrowers, whereas for borrowers the advantage is to get a trustworthy investor because to join the platform, the platform company will do the data filtering first to determine its credibility. Given the user friendly platform available, can peer to peer lending be an option in investment and looking for capital for the future of Indonesia in the future?


Advantages P2P Lending for Investors

What is the first thing that lenders see before giving loan investments to entrepreneurs who apply? Of course is the prospect of the development of the business whether it can generate profits or not. Not infrequently investors fail to issue loan funds because they are less confident with the credibility of the borrower. But through the lending marketplace or P2P lending platform, investors can be more confident in investing because borrowers who have joined this marketplace has been filtered before. Other advantages of joining P2P lending platforms such as SOFIS include:


The process of investment is faster and easier.

Anyone can participate to be a borrower of either a company, an entrepreneur, or an individual who has more funds to channel to entrepreneurs who need funds. If you’ve previously invested with other forms, lending through P2P lending can be a way to diversify your investment for risk sharing. Investors can also enjoy a higher return value compared with channeling investment funds through lending banks.


Advantages of P2P Lending for borrowers

If you are an entrepreneur, when going to apply for SME loan one of the things that become a consideration is the amount of interest rates set by financial institutions that provide credit facilities. So also for individuals who want to apply for loans for personal needs such as employee loans or to fund children’s education. So the main advantage of joining SOFIS as a P2P lending platform is that the interest rate is lower than that set by other credit finance institutions.


In addition, there are many advantages that can be enjoyed by borrower include:

  1. A faster and easier cash loan application process with simpler terms than applying for a loan to a bank or other financial institution.
  2. SOFIS provides loans to individuals as well as business loans. Individual loans can be utilized for home renovation, credit card payment loans, employee loans, and micro loans. While unsecured business loans, SOFIS serves business capital, receivable financing (max. Up to IDR 250 million), and contract financing (max. Up to IDR 1 billion).
  3. SOFIS provides a low interest rate and is adjusted based on the borrower’s risk assessment. The borrower will be classified in loan grade starting from A1-C3 to determine the amount of interest to be borne.


Looking at the various benefits that can be obtained either for investors or for borrowers, of course P2P Lending platform like can make changes in the dynamics of financial services in Indonesia. Now individuals and companies that need funds can more easily get investors who agree with the purpose of lending, and investors have other ways to invest or channel funds to the more needy. With easy loan way, of course can help in improving prosperity of Indonesian community.

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