JULO Expands Loan Function, Inaugurates Digital Credit

Fintech lending startup JULO inaugurated “JULO Digital Credit” to expand the loan ceiling function so that it can be used for various types of transactions. Previously, the ceiling could only be used for cash loans transferred by JULO to the borrower’s account.

JULO Co-founder & CEO Adrianus Hitijahubessy said, the transformation of this product was motivated by the needs of the people who are now completely digital when conducting daily transactions.

Although JULO still focuses on productive loans, according to company data, 3/4 borrowers use their credit limit for non-consumptive purposes.

“But activities that improve their standard of living, such as small business capital, paying school fees, renovating houses. There is also a consumptive, but we don’t mind it. For us, after going through strict underwriting, they pass creditworthiness, so they are given the freedom to use the limit whatever their needs,” he explained, Thursday (22/9).

JULO Kedit Digital offers a digital credit limit of up to IDR 15 million with a tenor of up to nine months and an interest of 0.1% per day. As for the payment, it can be done using the monthly installment method, thus easing the burden on users’ expenses.

The limit can be used for e-commerce transactions with JULO partners, paying bills, top-up e-wallet balances, cash loans, transferring funds to own or other people’s accounts, and scanning QRIS transactions.

Collaborating with DOKU

In presenting the transfer feature to e-wallet and QRIS, JULO collaborates with partners. Adrianus revealed that for QRIS partners, the company is collaborating with DOKU as the technology provider.

DOKU has a license from Bank Indonesia to facilitate QRIS transactions. “Meanwhile, if we transfer our e-money balance, we have other licensed partners because the licenses required are different,” he explained.

The expansion of the JULO credit limit function has actually been carried out by other lending players, including Akulaku and Kredivo, which offer various digital transactions in their application.

This new product also removes JULO’s old products, namely JULO Cicil and JULO Mini. Adrianus said the two products have become part of the JULO digital credit because they have the same function.

“In fact, we have expanded its features because basically, the spirit is the same, in the past we could repay the bill for up to six months, now it has been extended to nine months.”

He continued, this digital credit also expands the target of JULO users from the middle to lower economic class, to all circles, including the younger generation who live in rural and urban areas.

Digital Credit can Help Assess Credit Score

For preventive measures against bad loans, digital credit is very helpful in terms of continuous credit score assessment. This is because all consumer habits during transactions and when paying credit bills will be recorded. 

“Digital credit has various types of transactions that will enrich the credit score of each consumer. Previously, the credit score was only at the time of the initial submission.”

There is no mention of the ratio of bad loans in JULO. However, Adrianus said, like most fintech lending companies, JULO also experienced an increase in the ratio during this pandemic.

“Objectively it should be kept as low as possible. It is undeniable that we are also affected during the pandemic. For that we do a win-win solution.”

It is targeted that this year’s total loan disbursement can reach Rp4 trillion to Rp5 trillion cumulatively since it first started operating in 2016. As of May 2021 yesterday, the figure has reached Rp2 trillion. JULO has served 500 thousand customers, up from 2020 of 350 thousand customers.

Fintech platforms have also succeeded in accommodating approximately 8.7 million lenders (p2p) accounts disbursing funds of 13.8 trillion Rupiah.