Funding risk is the potential for losses in funding made by lenders. Therefore, lenders are advised to consider potential risk aspects in making funding through Mekar's peer-to-peer lending (P2P lending) platform. Funding made on the P2P lending platform is an agreement between the lender and the borrower that has been regulated in the agreement signed when making the funding, so that all risks arising from the agreement are fully borne by each party.
In an effort to mitigate funding risk, Mekar carries out a credit scoring and verification process, guides good borrowers, and partners with trusted insurance institutions, however, the risks to funding cannot be completely eliminated. The level of accuracy of Mekar's credit assessment cannot eliminate the risk of unexpected conditions such as serious illness, death, calamity, climate change, and natural disasters that may occur.
Therefore, if the borrower experiences late payments, defaults or defaults on the loan, Mekar will immediately notify the lender and try to make efforts to collect and deal with the borrower as our commitment to provide a fair settlement for all parties, especially lenders as lenders. .
Is it safe to give loans through Mekar's peer-to-peer lending (P2P lending)?
As the appeal of the Financial Services Authority (OJK) that lenders must always read the terms and conditions of the agreed agreements. Lenders (lenders) must understand that all risks for providing loans to the application or organizer platform are borne by the lender. Any delays and defaults by loan recipients that are not caused by errors or system failures of the Fintech Lending provider are not the responsibility of the peer-to-peer lending (P2P lending) provider.
What risk mitigation measures does Mekar take?
Mekar as a peer-to-peer lending platform (P2P lending) makes efforts to mitigate risks that can harm lenders. Mekar has a credit scoring system that is specially formulated for various types of borrowers (lenders) and MSMEs with the aim of assessing whether a borrower has good credit potential so as to minimize the possibility of delays or failure to pay.
After the borrower is deemed eligible to receive the loan and the funds have been distributed, Mekar conducts periodic monitoring of the borrower to find out the borrower's business conditions so that the risk of late payments and default can be minimized.
As one of the efforts to mitigate the risk of default, Mekar cooperates with insurance company partners who provide protection of up to 90% of the principal funds provided to borrowers.
What to do if the borrower pays late and fails to pay?
Mekar tries to identify from the start if there is a possibility of late payments or defaults through a periodic monitoring process, so that Mekar can take the best steps in an effort to safeguard borrower payments. Meanwhile, if the borrower experiences a delay in payment, Mekar will give a warning to the borrower to immediately pay off their loan in accordance with the previously agreed agreement. Alerts are given through the billing process by the Mekar Team.
Mekar can also take solutions through rescheduling or restructuring loans to borrowers. Along with this, Mekar will periodically provide up-to-date information regarding funding developments to lenders who have already funded the loan.
If funding is delayed for more than 90 days from the due date, the funding status will change to default.
In the process, Mekar will inform the lenders of late payments or defaults from the borrower and the countermeasures for this incident until the final outcome of the investigation so that lenders are aware of the progress of their portfolio.
Is there insurance in case of default?
Mekar provides insurance facilities as a form of credit risk mitigation to lenders. Mekar cooperates with insurance companies that provide credit insurance in the event of a default so that the level of risk for lenders can be minimized. Fund protection of up to 90% of the principal capital with reference to the stop-loss policy, in which the claim amount can only be disbursed from the total insurance premium paid by Mekar.
The choice to use insurance is the right of the lender (lender) if he wants to choose protection for his portfolio. At the choice of the lender (lender), the premium fee will be borne or borne by the lender (lender).
What insurance companies do Mekar work with?
Until now, Mekar has collaborated with Intrasia Insurance through Solusindo's Web Protection as a liaison partner for insurance companies.
Will Mekar continue to make efforts to collect money from the borrower after the project is declared a default and claims insurance?
Yes, Mekar will continue to make collection efforts according to Mekar's internal procedures. If later the borrower is able to make a payment (in part or in full), the Mekar Team will inform again and distribute the payment to the lender according to the applicable calculation.
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