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You can earn between 7.18% flat (13% effective) to 12.5% flat (22.32% effective) per year in Indonesian Rupiah. Let’s explain that ... All loans for small businesses on Mekar’s platform offer you a base or nominal interest rate of 7.18% to 10% per annum. This means that if you lend 100, you will receive monthly repayments, totalling 107.18 to 110 within one year.
However, Mekar has now made it possible to automatically use your monthly repayments to fund new loans for a shorter period. You are now not sitting on idle money, your idle money is being put to work. Your earnings can therefore go up to 12.5% per year, depending on for how long you lock up your investment. You can invest for a period of 12 months (Basic Compound Plan), 18 months (Standard Compound Plan) or 24 months (Advance Compound Plan). You then get your money back at the end of the period.
If you do not have an Indonesian bank account you still earn the same high returns as an Indonesian lender, but there are extra costs involved. So in USD, EUR, AUD or other currencies, you will earn about half that of an Indonesian lender.
We quote ‘flat’ rates. Which means that 8% is 8 on a loan of 100 in one year. The effective interest rate or APR is then roughly 14%.
We prefer to communicate the flat rate because it is what you get; 100 at 8% = 108 at the end of the year. Other lenders like to offer the effective rate because it seems you may get more.
The interest or yield calculation is:
= (Loan Amount x (Maturity date - Sold Date) x 10 %) : 360 Days
Illustration:
- Loan Amount: IDR 5,000,000
- Sold date: Friday, 7 July 2020
- Maturity Date: 30 December 2020
- Rate: 10 %
You Earn = (IDR 5,000,000 x (30 Dec 20 - 7 July 20) x 10 %) : 360 Days
= IDR 244,444
Please note that every loan in Mekar will start accruing interest only after it is fully funded. The date when a loan is fully funded is recorded in our system as the loan’s Sold Date.
Every lending partner has their own repayment schedule. Koperasi Abdi Kerta Raharja (AKR) schedules its repayment on the 8th of every month, while other lending partners with Mekar schedule their repayment on the 15th of every month.
Mekar usually processes the repayment to you on the same day. However, the process may take up to 3 (three) working days after the scheduled repayment date.
For a quick response, reach out to us and we'll be in touch soon.
Naya Kemang Selatan,
Jalan Madrasah Raya Kav. 11 G-H Unit 11,
Kelurahan Cilandak Timur, Kecamatan Pasar Minggu,
Jakarta Selatan 12560
Phone +6221 300 22735