Modal Rakyat Has Managed to Disburse IDR 2 Trillion in Funding

PT Modal Rakyat Indonesia (Modal Rakyat) has succeeded in disbursing funding of more than IDR 2 trillion as of August 2021.  

Now Modal Rakyat has invited 12,605 individual lenders, 22 institutional lenders, and 14 strategic partners to work together to support Indonesia’s financial inclusion. 

Not only that, it has disbursed financing for 8,811 borrowers, consisting of micro, small and medium enterprises. 

From a demographic perspective, 78% of Modal Rakyat borrowers are located in Java and 22% are outside Java. Meanwhile, from the funding side, 75% of the financiers came from the island of Java and 25% of the financiers came from outside the island of Java. 

Meanwhile, in terms of the financing sector, there are the three largest financing disbursement sectors, namely the accounting and financial services sector, the information technology sector, and the trade sector. 

Until now, Modal Rakyat is still trying to expand financing, especially financing for MSME actors outside Java. 

Not only that, collaboration and cooperation with banks, rural credit banks, to the startup ecosystem in Indonesia is also a strategic step for companies in realizing the vision to “contribute to financial inclusion and the national economy”. 

“We thank the community, institutional financiers, and all strategic partners who have contributed to the development of Modal Rakyat,” said Hendoko Kwik, Tuesday (31/8). 

This Achievement Will Motivate the Company to be More Developed 

He also added that the achievement of the IDR 2 trillion disbursements would further motivate Modal Rakyat to continue to grow in the future. 

Of course, not only in terms of the nominal distribution of financing, but also expanding cooperation and collaboration with various parties so that financial inclusion can truly be built 

Hendoko explained, although still in the midst of a pandemic situation, during the first semester of 2021 it grew by around 15% per month. This growth certainly shows optimism, both from the company side and the fintech lending industry that can continue to grow in the midst of this situation. 

In addition, this year, Modal Rakyat has also officially opened a branch office in Surabaya to bridge MSME players who need financial support to develop their business. 

The types of financing available in Modal Rakyat to date, namely, Micro Capital, SME Capital, and Multipurpose Capital. 

Micro Capital as an agent-based loan is a loan whose credit distribution is assisted by field agents (generally at grocery stalls and pulse traders. 

In developing Micro Capital, since 2018 it has collaborated with Payfazz which already has an ecosystem of more than 4.5 million credit agents/grocery shops in various regions. 

In micro capital, as many as 4,557 agents/grocery shop owners have obtained financing from Modal Rakyat. 

Two Types of Loans for MSMEs 

In SME Capital, Modal Rakyat provides two types of loans, namely receivables financing loans and Business Loans (Instalment Capital) with distributions per loan of IDR 50 million to IDR 2 billion. 

Invoice Financing is intended for entrepreneurs who have run their business and have receivables from Payor (who have obligations to pay). 

Receivables owned by MSMEs will be used as the underlying or the basis for financing by Modal Rakyat. While business loans are usually intended for Borrowers who want to use their funds for business development purposes or capital expenditures. 

Borrowers can access it and apply for loans. The payback scheme is generally carried out with a pro-rated product installment scheme with interest every month for a year. 

In 2021, Modal Rakyat has distributed financing of IDR 1.041 trillion for the type of SME Capital. The third type of financing is multipurpose financing, where this financing facilitates individuals who need loans for health and daily needs.