The Indonesian Joint Funding Fintech ASSOCIATION (Afpi) agrees with the trend of increasing demand for financing during the Ramadan and Eid periods. This is in line with increasing needs, both for production and consumption during that period.
“Referring to past data, there will be an increase in demand for loan funds for various purposes varying up to 30-50%,” said Head of Public Relations Afpi Kuseryansyah to Media Indonesia, Sunday (24/3).
Generally, he continued, the increase in demand for financing increases before the religious holiday allowance (THR) is disbursed. The funds received, said Kuseryansyah, were widely used by debtors as reserve funds for Eid purposes.
For Micro, Small and Medium Enterprises (MSMEs), financing funds are needed to procure stock of merchandise to meet high demand during the Eid and post-Eid periods. These funds are also used for various purposes, including stock supplies.
“On the other hand, increasing loan disbursement will lead to an increase in bad credit if it is not followed by caution and tightening credit assessments during this period,” said Kuseryansyah.
For this reason, he added, fintech P2P lending providers will usually implement their own risk management policies, including analyzing loan quality based on data from the Eid season in previous years.
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“P2P Lending organizers have of course prepared pre- and post-Eid steps. That’s why, even though demand for loan disbursement is high, the approval rate is lower, so loan growth will increase by around 20-30%. After Eid, monitoring also reminds us borrowers need to do it more intensively,” concluded Kuseryansyah.
Previously it was known that the Financial Services Authority (OJK) warned finance companies to remain careful in disbursing loans, especially ahead of Ramadan and Eid al-Fitr. This is because demand for financing in this period has always increased over the last five years.
This was conveyed by Member of the Board of Commissioners and Chief Executive Supervisor of Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Services Institutions, OJK Agusman in a press conference some time ago.
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“Regarding the trend of increasing distribution, we remind finance companies to maintain the principle of prudence in distributing financing, so that receivables are not accompanied by an increase in credit risk,” he said.
The trend of increasing demand for financing, said Agusman, occurred in multipurpose financing for motor vehicles and financing in the form of buy now pay later (BNPL).
According to him, this is in line with the trend of increasing community needs to welcome Ramadan and Eid al-Fitr. It is very likely that people will need financing to buy necessities, including transportation tickets for going home. (Mir/Z-7)
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