Modalku Provides Loans of up to IDR 2 Billion for Health Facilities

The finance company or fintech lending Modalku, announced a partnership with the Health Insurance Administering Agency (BPJS) to provide loan facilities to health facilities (health facilities).

In a press release on Tuesday (14/4), Modalku provided a loan facility of up to IDR 2 billion for BPJS Health partner facilities. This loan from Modalku is expected to facilitate cash-flow, so that health services at the health facility level can be maximized.

Modalku’s Co-Founder and CEO Reynold Wijaya said that the loan funds from Modalku could be used by the health facilities to make early payments for their bills to BPJS Health. After the health facilities get a loan, BPJS Health will provide information on the financing of health services for BPJS Health participants in the related health facilities.

“This is to help the continuation of the health facilities so that the community also continues to get good health services,” Reynold said in a press release on Tuesday (4/14). He said, health facilities require operational costs such as purchasing drugs, medical equipment care, to paying employees.

To finance operations, loan funds from fintech lending such as Modalku, more or less can help smooth the flow of cash facilities. Requirements for health facilities to be able to get loans from Modalku are also not too complicated. The reason is, Modalku only requires health facilities that are eligible for loans are BPJS Health partner facilities and have been operating for a minimum of six months.

Loans for Health Facilities are not the Only Modalku’s Service

In addition to providing loans to health facilities, Modalku also provides loans to health suppliers. Loans for health suppliers are quite important because the availability of medical devices is needed in the midst of a corona pandemic or Covid-19.

Not only that, but Modalku also provides loan facilities for employees or health workers, who work in health facilities and medical equipment supplier companies. With notes, health facilities and medical equipment suppliers have collaborated with Modalku.

“The health worker can apply for a loan and get an interest-free loan relief for the first three months,” Reynold said. BPJS Health and Investment Director Kemal Imam Santoso said that from the very beginning the National Health Card-Indonesia Health Insurance Program (JKN-KIS) BPJS had partnered with various banking partners.

From its collaboration with banks, there are loan products and features for health facilities. One product developed is Supply Chain Financing (SCF), which can be used by health facilities to finance health services.

Since its launch in 2017, SCF has been utilized by 1,043 hospitals with total funding of IDR 19.5 trillion. “Modalku can provide options or alternatives to health facilities partners in utilizing the SCF program,” Kemal said.

Modalku’s Strategy for Anticipating Borrowers Who Fail to Pay

PT Mitrausaha Indonesia Group (Modalku) confirms the default rate of Modalku especially in Indonesia is still relatively low. Modalku Co-Founder & CEO Reynold Wijaya said, Modalku’s default rate was 0.8% of loan disbursement.

According to him, in the current condition Modalku still showed good performance because it succeeded in reducing the default rate for the past 1 year. “Modalku noted that it was able to reduce the default rate from 1.6% to 0.8%,” Reynold explained.

Reynold said, to anticipate the occurrence of default loans it conducted an assessment, monitoring and collection. He said, the assessment was carried out thoroughly when applying for a loan, this aims to ensure the borrower has the ability to repay the loan.

Later, after the borrower gets his loan, Modalku will conduct regular monitoring by regularly communicating with the borrower.

“When a borrower is late in paying, it will help to meet the obligation to fulfill obligations through collection activities,” he cut.

To anticipate the installment restructuring, Modalku applies a proactive and collaborative approach. Reynold said, proactively functions to implement payment relaxation schemes according to business performance conditions on a regular basis. Meanwhile, his collaborative party will accommodate the payment scheme proposed by the borrower.