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Funding A Loan

This all you have to know about funding on Mekar

Mekar offers you a double bonus.

Firstly, Mekar offers you an interest rate which is higher than what you can earn in a bank’s savings account. In Indonesia you can earn 5%-6% on a 12 month time deposit account. With Mekar your annual earnings start at 7% and go up to 12.5%. 

Secondly, your money helps small businesses in Indonesia grow, 90% of our loans are for women micro-entrepreneurs. If you save money at a bank it is very unclear how your money is being used by the bank. At Mekar you can choose who, where and what your money is used for.

Lenders can register on https://mekar.id

Yes, you are welcome to fund loans via Mekar. When you register as a lender in Mekar, Mekar will provide you with a personal account number at Bank BNI in Indonesia to transfer your funds to. You will need to fund a minimum of USD 3000 or Euro 2500 in loans. We have set this minimum amount to ensure you earn enough on your money given the cost of international transfers.
 
You will be notified by Mekar when your funds have been received, you can then start selecting the loans that you want to finance. You will receive a notification when your loans have been repaid and there are idle funds in your Mekar account. You can then use your funds to finance new loans or transfer the money back to your home bank account. Mekar will charge no extra fees for this but do realize that international bank transfers cost money (about USD 60, back and forth), as does inflation (about 3%-4%) and we will deduct 20% tax on your interest earnings. You will receive a receipt for the tax payments, which you can use to show your own tax office as a proof that the tax has already been paid. Most countries have a ‘double taxation treaty’ with Indonesian.

You can fund loans via Mekar once your registration has been checked. Once approved, you will be notified with your Mekar Account number. Then you are ready to fund loans. It should take 4 to 48 hours between registering and being ready to fund loans.

For the Starter Plan, the minimum amount to fund in any single loan is IDR 100,000. Please note that if a loan of your choice is less than IDR 200,000 short from being fully funded, you will need to fund the entire remaining amount of the loan.

 

MEKAR crowdfunds most loans, which means many individual lenders can contribute their funds to successfully fund a loan in MEKAR. You can still fund the entire loan but you also have the option to fund just a portion of the loan starting from IDR 100,000 or more.

From time to time, you might find short term loans of less than 12 months on Mekar's loan list. Mekar does not crowdfund such loans; you will have to fund the entire loan amount.

If a loan fails to fully fund in the allotted 48 hours funding window, we reset its funding progress and relist it on our loan list. It now has 48 more hours to become fully funded. We also credit your funds back to your Mekar Account. You can then fund the same loan again after selecting it from the loan list or select other loans that are closer to being fully funded to start funding faster.
 

All lenders have an account with a dashboard. Click here to log into your account and view your dashboard. On the dashboard, you can see the total amount of money you have lent and made. You can also view your remaining principal on any active funding if you wish.

No, Mekar does not hold your money. The Financial Markets Authority (OJK) does not allow us to. Your money changes places when you transfer/add funds to your Mekar Account, fund a loan and receive repayment from your borrower. 
  • When you transfer money to Mekar, it is kept in a safe “escrow” or Third Party account. Deposits from Indonesia and abroad are held with Bank BNI, one of Indonesia’s four state banks.
  • When you fund one or more loans, your money goes from your “escrow” or deposit account to the Lending Partner's bank account.
  • When your borrower makes a repayment, your money is transferred by the Lending Partner to our payment provider Bank BNI.
At each step Mekar ensures that the transactions are modified in your dashboard.

No, at the moment this is not possible.
 

The Financial Services Authority (OJK) requires all lenders using fintech lending services in Indonesia to sign an agreement with the service provider and one with each of their borrowers. In Mekar’s loan agreements, your borrowers are represented by the lending partners that originated their loans, thus you are only required to sign one loan agreement with each lending partner, if you are funding any of their loans.

We use PrivyID, a third-party digital signature platform, to help you create your digital signature and sign documents online.

As part of the digital signature creation and verification process, we are required to share some of your data that is relevant for those mentioned purposes with PrivyID. The data we are sharing with the digital signature platform PrivyID are lender’s name, email address, selfie image, and ID card (KTP). Mekar does not profit off our users by selling their data to a third party.

To sign your agreements, simply log in to your Mekar account. A pop up window will appear on your screen prompting you to sign the Funding Agreement and/or Loan Agreements, if you haven’t already done so. Follow the instructions on your screen to sign the agreements. 

You can use this quick guide to learn the complete steps to digitally sign your agreements in Mekar. If you need further assistance, contact our Customer Support.
 

You can find the agreement between you and Mekar in your dashboard. To view the agreement, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

You can find the agreements between you and your borrowers (represented by the lending partners that originated their loans) in your dashboard. To view the agreements, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

When you select one or more loans to finance, Mekar will check if you have sufficient funds in your ‘Mekar Account’. If OK, Mekar will withdraw the funds from your Mekar account and transfer it to the Lending Partners managing those loans. If there are not enough funds in your Mekar Account, then we will notify you. You must then add your funds before completing the transaction, or remove some loans from your selection.

A Mekar Account is like your own “virtual bank account” with Mekar. It is not a bank account though. Your Mekar Account number is your ID with Mekar. We use it to manage your top ups, funding transactions, and repayments to your account. There is one Mekar account number for every lender.

This is the amount of available money currently in your Mekar Account. This money is not being used to fund loans. It is sitting there earning no money for you. So it is best to either use it to fund new loans, which we prefer, or to withdraw it. Our system will automatically transfer funds that have been idle for 2 (two) days in your Mekar Account back to your bank account.
 

Add Funds using BNI ATM:

  • On the main menu, select Other Menu
  • On the transaction menu screen, select Transfer
  • On the account menu screen, select From Savings Account
  • On the destination account menu screen, select to a BNI Account/BNI Syariah
  • Enter your Virtual Account number 
  • Enter the amount of the loan(s) you are funding 
  • On the confirmation screen, select Yes 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using Internet Banking:

  • Visit https://ibank.bni.co.id and click Log in
  • Enter your User ID and Password
  • If you are using a desktop computer, select Transactions from the main menu bar. Transfer Inquiry Then select Manage Counterparty and Add Counterparty.
  • Enter your name and your Virtual Account Number. 
  • Input the authentication code generated by your BNI e-Secure token 
  • You have now successfully added your destination account 
  • Go back to the TRANSFER menu
  • Select TRANSFER TO A BNI ACCOUNT, and then select your destination account from the list
  • Select a Source Account and write the amount you want to top up, and input the authentication code generated by your BNI e-Secure Token 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using a deposit slip: 
Go to the nearest Bank BNI branch, and present it to the teller along with the money you want to deposit. If you are not a BNI customer, you will be required to present your identity card to make a transaction.

 
Add Funds using an transfer slip (*): 

  • Request an overbooking slip from the teller
  • Write the transaction date 
  • In the Recipient field, fill in the Account Holder’s Name with your name as registered in your funder account
  • In the Account Number field, write your Virtual Account Number
  • In the Amount field, write the amount of the loan(s) you are funding
  • In the Sender field, write the depositor’s name and account number and the branch name where the account was opened.  

(*) Identity Card (KTP), ATM and Saving Book is required

(**) Applicable to Indonesian bank account holders 

Follow these steps to transfer funds to your Mekar Account from other banks that are within the online banking network:

  • Select "Other Transaction" Menu
  • Select "Transfer" Menu
  • Select "To Other Bank Account"
  • Enter Bank BNI's bank code (009)
  • Enter your Virtual Account number
  • Enter the amount of funding for the loan you have chosen
  • Select "YES" after you were asked to confirm your name and the amount of transaction, and your transaction is done

Please be informed that transaction from banks within the online banking network will be charged with transaction fee in accordance with each company's regulation.

To add to your funds using Internet Banking services from other bank that are within the online banking network, enter Bank BNI's bank code (009) and then enter your Virtual Account.

(**) Applicable to Indonesian bank account holders

Lenders with an Indonesian bank account, please refer below:

  • Less than IDR 20 million: 4 hours
  • IDR 20 million to 40 million: 24 hours
  • IDR 40 million to 60 million: 48 hours
  • More than IDR 60 million: 72 hours

For lenders without an Indonesian bank account, there is no time limit for when you can make your transfer, but please keep in mind that your funding will start only when your funds are deposited in your Mekar account. So make sure to transfer your funds at your earliest convenience.

From other Indonesian banks = 1 working day

From foreign banks = 1 to 4 working days. Transfers to Indonesia are generally faster (1-3 days).

Transfers back to you will take 2-4 working days.

When you withdraw funds from your Mekar Account, it will take up to 1 (one) business day for the money to appear in your bank account. The amount of time it takes for your money to reach your bank account depends on how quickly your bank processes the transaction. Fund withdrawal with the amount of less than 1 (one) million rupiah will be processed immediately.

All withdrawals are processed during bank business hours. Weekends and/or holidays may delay the process. Therefore, please allow extra time if you make a withdrawal request on a weekend or holiday.

You can earn between 5.00% flat (9% 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 5.00% 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.

Borrowers pay our lending partners about 23% per year. 13% goes to the Lending partner for their work, around 2% to Mekar and about 8% to the lenders. If you fund loans for a longer period of time, you will earn more, but the borrower still pays the same amount.
 
This lending rate may seem high, but the borrowers whose loans you are funding have no collateral and cannot get a regular loan from a bank. In Indonesia a borrower without collateral will usually pay about 36% or more if they want to get an uncollateralized loan from a bank. Their other alternative is to borrow from a loan shark that would charge them about 80% to 300% per year. Our borrowers are therefore happy that they can get a relatively cheap loan via Mekar.

The interest on your loan is fixed. It will not change with changes in the state interest rate that are announced by the Indonesian Central Bank.

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.

In the dashboard, go to the menu “Account” and select “Withdrawals”.

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.

Yes, Indonesian citizens, organizations, and residents will be charged tax (PPh 23) as follows:
  • 15% of earnings if you have a Tax ID number or “NPWP”;
  • 30% of earnings if you do not have an ‘NPWP’.
 
Foreign lenders will be charged 20% of earnings. Most countries have a double taxation treaty with Indonesia, therefore you can present the Mekar Tax receipt as proof of payment.
 
Mekar will provide you with monthly and annual tax receipts (XLS) and proof of tax payment, which can be found in the dashboard, where you can download them. Mekar’s Lending Partner will pay the income tax due, and provide the receipts from the tax office. Mekar shares these with you.

Yes, there are tax deductions and collections in accordance with applicable tax regulations and laws.

Funding A Loan

This all you have to know about funding on Mekar

Mekar offers you a double bonus.

Firstly, Mekar offers you an interest rate which is higher than what you can earn in a bank’s savings account. In Indonesia you can earn 5%-6% on a 12 month time deposit account. With Mekar your annual earnings start at 7% and go up to 12.5%. 

Secondly, your money helps small businesses in Indonesia grow, 90% of our loans are for women micro-entrepreneurs. If you save money at a bank it is very unclear how your money is being used by the bank. At Mekar you can choose who, where and what your money is used for.

Lenders can register on https://mekar.id

Yes, you are welcome to fund loans via Mekar. When you register as a lender in Mekar, Mekar will provide you with a personal account number at Bank BNI in Indonesia to transfer your funds to. You will need to fund a minimum of USD 3000 or Euro 2500 in loans. We have set this minimum amount to ensure you earn enough on your money given the cost of international transfers.
 
You will be notified by Mekar when your funds have been received, you can then start selecting the loans that you want to finance. You will receive a notification when your loans have been repaid and there are idle funds in your Mekar account. You can then use your funds to finance new loans or transfer the money back to your home bank account. Mekar will charge no extra fees for this but do realize that international bank transfers cost money (about USD 60, back and forth), as does inflation (about 3%-4%) and we will deduct 20% tax on your interest earnings. You will receive a receipt for the tax payments, which you can use to show your own tax office as a proof that the tax has already been paid. Most countries have a ‘double taxation treaty’ with Indonesian.

You can fund loans via Mekar once your registration has been checked. Once approved, you will be notified with your Mekar Account number. Then you are ready to fund loans. It should take 4 to 48 hours between registering and being ready to fund loans.

For the Starter Plan, the minimum amount to fund in any single loan is IDR 100,000. Please note that if a loan of your choice is less than IDR 200,000 short from being fully funded, you will need to fund the entire remaining amount of the loan.

 

MEKAR crowdfunds most loans, which means many individual lenders can contribute their funds to successfully fund a loan in MEKAR. You can still fund the entire loan but you also have the option to fund just a portion of the loan starting from IDR 100,000 or more.

From time to time, you might find short term loans of less than 12 months on Mekar's loan list. Mekar does not crowdfund such loans; you will have to fund the entire loan amount.

If a loan fails to fully fund in the allotted 48 hours funding window, we reset its funding progress and relist it on our loan list. It now has 48 more hours to become fully funded. We also credit your funds back to your Mekar Account. You can then fund the same loan again after selecting it from the loan list or select other loans that are closer to being fully funded to start funding faster.
 

All lenders have an account with a dashboard. Click here to log into your account and view your dashboard. On the dashboard, you can see the total amount of money you have lent and made. You can also view your remaining principal on any active funding if you wish.

No, Mekar does not hold your money. The Financial Markets Authority (OJK) does not allow us to. Your money changes places when you transfer/add funds to your Mekar Account, fund a loan and receive repayment from your borrower. 
  • When you transfer money to Mekar, it is kept in a safe “escrow” or Third Party account. Deposits from Indonesia and abroad are held with Bank BNI, one of Indonesia’s four state banks.
  • When you fund one or more loans, your money goes from your “escrow” or deposit account to the Lending Partner's bank account.
  • When your borrower makes a repayment, your money is transferred by the Lending Partner to our payment provider Bank BNI.
At each step Mekar ensures that the transactions are modified in your dashboard.

No, at the moment this is not possible.
 

The Financial Services Authority (OJK) requires all lenders using fintech lending services in Indonesia to sign an agreement with the service provider and one with each of their borrowers. In Mekar’s loan agreements, your borrowers are represented by the lending partners that originated their loans, thus you are only required to sign one loan agreement with each lending partner, if you are funding any of their loans.

We use PrivyID, a third-party digital signature platform, to help you create your digital signature and sign documents online.

As part of the digital signature creation and verification process, we are required to share some of your data that is relevant for those mentioned purposes with PrivyID. The data we are sharing with the digital signature platform PrivyID are lender’s name, email address, selfie image, and ID card (KTP). Mekar does not profit off our users by selling their data to a third party.

To sign your agreements, simply log in to your Mekar account. A pop up window will appear on your screen prompting you to sign the Funding Agreement and/or Loan Agreements, if you haven’t already done so. Follow the instructions on your screen to sign the agreements. 

You can use this quick guide to learn the complete steps to digitally sign your agreements in Mekar. If you need further assistance, contact our Customer Support.
 

You can find the agreement between you and Mekar in your dashboard. To view the agreement, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

You can find the agreements between you and your borrowers (represented by the lending partners that originated their loans) in your dashboard. To view the agreements, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

When you select one or more loans to finance, Mekar will check if you have sufficient funds in your ‘Mekar Account’. If OK, Mekar will withdraw the funds from your Mekar account and transfer it to the Lending Partners managing those loans. If there are not enough funds in your Mekar Account, then we will notify you. You must then add your funds before completing the transaction, or remove some loans from your selection.

A Mekar Account is like your own “virtual bank account” with Mekar. It is not a bank account though. Your Mekar Account number is your ID with Mekar. We use it to manage your top ups, funding transactions, and repayments to your account. There is one Mekar account number for every lender.

This is the amount of available money currently in your Mekar Account. This money is not being used to fund loans. It is sitting there earning no money for you. So it is best to either use it to fund new loans, which we prefer, or to withdraw it. Our system will automatically transfer funds that have been idle for 2 (two) days in your Mekar Account back to your bank account.
 

Add Funds using BNI ATM:

  • On the main menu, select Other Menu
  • On the transaction menu screen, select Transfer
  • On the account menu screen, select From Savings Account
  • On the destination account menu screen, select to a BNI Account/BNI Syariah
  • Enter your Virtual Account number 
  • Enter the amount of the loan(s) you are funding 
  • On the confirmation screen, select Yes 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using Internet Banking:

  • Visit https://ibank.bni.co.id and click Log in
  • Enter your User ID and Password
  • If you are using a desktop computer, select Transactions from the main menu bar. Transfer Inquiry Then select Manage Counterparty and Add Counterparty.
  • Enter your name and your Virtual Account Number. 
  • Input the authentication code generated by your BNI e-Secure token 
  • You have now successfully added your destination account 
  • Go back to the TRANSFER menu
  • Select TRANSFER TO A BNI ACCOUNT, and then select your destination account from the list
  • Select a Source Account and write the amount you want to top up, and input the authentication code generated by your BNI e-Secure Token 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using a deposit slip: 
Go to the nearest Bank BNI branch, and present it to the teller along with the money you want to deposit. If you are not a BNI customer, you will be required to present your identity card to make a transaction.

 
Add Funds using an transfer slip (*): 

  • Request an overbooking slip from the teller
  • Write the transaction date 
  • In the Recipient field, fill in the Account Holder’s Name with your name as registered in your funder account
  • In the Account Number field, write your Virtual Account Number
  • In the Amount field, write the amount of the loan(s) you are funding
  • In the Sender field, write the depositor’s name and account number and the branch name where the account was opened.  

(*) Identity Card (KTP), ATM and Saving Book is required

(**) Applicable to Indonesian bank account holders 

Follow these steps to transfer funds to your Mekar Account from other banks that are within the online banking network:

  • Select "Other Transaction" Menu
  • Select "Transfer" Menu
  • Select "To Other Bank Account"
  • Enter Bank BNI's bank code (009)
  • Enter your Virtual Account number
  • Enter the amount of funding for the loan you have chosen
  • Select "YES" after you were asked to confirm your name and the amount of transaction, and your transaction is done

Please be informed that transaction from banks within the online banking network will be charged with transaction fee in accordance with each company's regulation.

To add to your funds using Internet Banking services from other bank that are within the online banking network, enter Bank BNI's bank code (009) and then enter your Virtual Account.

(**) Applicable to Indonesian bank account holders

Lenders with an Indonesian bank account, please refer below:

  • Less than IDR 20 million: 4 hours
  • IDR 20 million to 40 million: 24 hours
  • IDR 40 million to 60 million: 48 hours
  • More than IDR 60 million: 72 hours

For lenders without an Indonesian bank account, there is no time limit for when you can make your transfer, but please keep in mind that your funding will start only when your funds are deposited in your Mekar account. So make sure to transfer your funds at your earliest convenience.

From other Indonesian banks = 1 working day

From foreign banks = 1 to 4 working days. Transfers to Indonesia are generally faster (1-3 days).

Transfers back to you will take 2-4 working days.

When you withdraw funds from your Mekar Account, it will take up to 1 (one) business day for the money to appear in your bank account. The amount of time it takes for your money to reach your bank account depends on how quickly your bank processes the transaction. Fund withdrawal with the amount of less than 1 (one) million rupiah will be processed immediately.

All withdrawals are processed during bank business hours. Weekends and/or holidays may delay the process. Therefore, please allow extra time if you make a withdrawal request on a weekend or holiday.

You can earn between 5.00% flat (9% 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 5.00% 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.

Borrowers pay our lending partners about 23% per year. 13% goes to the Lending partner for their work, around 2% to Mekar and about 8% to the lenders. If you fund loans for a longer period of time, you will earn more, but the borrower still pays the same amount.
 
This lending rate may seem high, but the borrowers whose loans you are funding have no collateral and cannot get a regular loan from a bank. In Indonesia a borrower without collateral will usually pay about 36% or more if they want to get an uncollateralized loan from a bank. Their other alternative is to borrow from a loan shark that would charge them about 80% to 300% per year. Our borrowers are therefore happy that they can get a relatively cheap loan via Mekar.

The interest on your loan is fixed. It will not change with changes in the state interest rate that are announced by the Indonesian Central Bank.

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.

In the dashboard, go to the menu “Account” and select “Withdrawals”.

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.

Yes, Indonesian citizens, organizations, and residents will be charged tax (PPh 23) as follows:
  • 15% of earnings if you have a Tax ID number or “NPWP”;
  • 30% of earnings if you do not have an ‘NPWP’.
 
Foreign lenders will be charged 20% of earnings. Most countries have a double taxation treaty with Indonesia, therefore you can present the Mekar Tax receipt as proof of payment.
 
Mekar will provide you with monthly and annual tax receipts (XLS) and proof of tax payment, which can be found in the dashboard, where you can download them. Mekar’s Lending Partner will pay the income tax due, and provide the receipts from the tax office. Mekar shares these with you.

Yes, there are tax deductions and collections in accordance with applicable tax regulations and laws.

Funding A Loan

This all you have to know about funding on Mekar

Mekar offers you a double bonus.

Firstly, Mekar offers you an interest rate which is higher than what you can earn in a bank’s savings account. In Indonesia you can earn 5%-6% on a 12 month time deposit account. With Mekar your annual earnings start at 7% and go up to 12.5%. 

Secondly, your money helps small businesses in Indonesia grow, 90% of our loans are for women micro-entrepreneurs. If you save money at a bank it is very unclear how your money is being used by the bank. At Mekar you can choose who, where and what your money is used for.

Lenders can register on https://mekar.id

Yes, you are welcome to fund loans via Mekar. When you register as a lender in Mekar, Mekar will provide you with a personal account number at Bank BNI in Indonesia to transfer your funds to. You will need to fund a minimum of USD 3000 or Euro 2500 in loans. We have set this minimum amount to ensure you earn enough on your money given the cost of international transfers.
 
You will be notified by Mekar when your funds have been received, you can then start selecting the loans that you want to finance. You will receive a notification when your loans have been repaid and there are idle funds in your Mekar account. You can then use your funds to finance new loans or transfer the money back to your home bank account. Mekar will charge no extra fees for this but do realize that international bank transfers cost money (about USD 60, back and forth), as does inflation (about 3%-4%) and we will deduct 20% tax on your interest earnings. You will receive a receipt for the tax payments, which you can use to show your own tax office as a proof that the tax has already been paid. Most countries have a ‘double taxation treaty’ with Indonesian.

You can fund loans via Mekar once your registration has been checked. Once approved, you will be notified with your Mekar Account number. Then you are ready to fund loans. It should take 4 to 48 hours between registering and being ready to fund loans.

For the Starter Plan, the minimum amount to fund in any single loan is IDR 100,000. Please note that if a loan of your choice is less than IDR 200,000 short from being fully funded, you will need to fund the entire remaining amount of the loan.

 

MEKAR crowdfunds most loans, which means many individual lenders can contribute their funds to successfully fund a loan in MEKAR. You can still fund the entire loan but you also have the option to fund just a portion of the loan starting from IDR 100,000 or more.

From time to time, you might find short term loans of less than 12 months on Mekar's loan list. Mekar does not crowdfund such loans; you will have to fund the entire loan amount.

If a loan fails to fully fund in the allotted 48 hours funding window, we reset its funding progress and relist it on our loan list. It now has 48 more hours to become fully funded. We also credit your funds back to your Mekar Account. You can then fund the same loan again after selecting it from the loan list or select other loans that are closer to being fully funded to start funding faster.
 

All lenders have an account with a dashboard. Click here to log into your account and view your dashboard. On the dashboard, you can see the total amount of money you have lent and made. You can also view your remaining principal on any active funding if you wish.

No, Mekar does not hold your money. The Financial Markets Authority (OJK) does not allow us to. Your money changes places when you transfer/add funds to your Mekar Account, fund a loan and receive repayment from your borrower. 
  • When you transfer money to Mekar, it is kept in a safe “escrow” or Third Party account. Deposits from Indonesia and abroad are held with Bank BNI, one of Indonesia’s four state banks.
  • When you fund one or more loans, your money goes from your “escrow” or deposit account to the Lending Partner's bank account.
  • When your borrower makes a repayment, your money is transferred by the Lending Partner to our payment provider Bank BNI.
At each step Mekar ensures that the transactions are modified in your dashboard.

No, at the moment this is not possible.
 

The Financial Services Authority (OJK) requires all lenders using fintech lending services in Indonesia to sign an agreement with the service provider and one with each of their borrowers. In Mekar’s loan agreements, your borrowers are represented by the lending partners that originated their loans, thus you are only required to sign one loan agreement with each lending partner, if you are funding any of their loans.

We use PrivyID, a third-party digital signature platform, to help you create your digital signature and sign documents online.

As part of the digital signature creation and verification process, we are required to share some of your data that is relevant for those mentioned purposes with PrivyID. The data we are sharing with the digital signature platform PrivyID are lender’s name, email address, selfie image, and ID card (KTP). Mekar does not profit off our users by selling their data to a third party.

To sign your agreements, simply log in to your Mekar account. A pop up window will appear on your screen prompting you to sign the Funding Agreement and/or Loan Agreements, if you haven’t already done so. Follow the instructions on your screen to sign the agreements. 

You can use this quick guide to learn the complete steps to digitally sign your agreements in Mekar. If you need further assistance, contact our Customer Support.
 

You can find the agreement between you and Mekar in your dashboard. To view the agreement, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

You can find the agreements between you and your borrowers (represented by the lending partners that originated their loans) in your dashboard. To view the agreements, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

When you select one or more loans to finance, Mekar will check if you have sufficient funds in your ‘Mekar Account’. If OK, Mekar will withdraw the funds from your Mekar account and transfer it to the Lending Partners managing those loans. If there are not enough funds in your Mekar Account, then we will notify you. You must then add your funds before completing the transaction, or remove some loans from your selection.

A Mekar Account is like your own “virtual bank account” with Mekar. It is not a bank account though. Your Mekar Account number is your ID with Mekar. We use it to manage your top ups, funding transactions, and repayments to your account. There is one Mekar account number for every lender.

This is the amount of available money currently in your Mekar Account. This money is not being used to fund loans. It is sitting there earning no money for you. So it is best to either use it to fund new loans, which we prefer, or to withdraw it. Our system will automatically transfer funds that have been idle for 2 (two) days in your Mekar Account back to your bank account.
 

Add Funds using BNI ATM:

  • On the main menu, select Other Menu
  • On the transaction menu screen, select Transfer
  • On the account menu screen, select From Savings Account
  • On the destination account menu screen, select to a BNI Account/BNI Syariah
  • Enter your Virtual Account number 
  • Enter the amount of the loan(s) you are funding 
  • On the confirmation screen, select Yes 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using Internet Banking:

  • Visit https://ibank.bni.co.id and click Log in
  • Enter your User ID and Password
  • If you are using a desktop computer, select Transactions from the main menu bar. Transfer Inquiry Then select Manage Counterparty and Add Counterparty.
  • Enter your name and your Virtual Account Number. 
  • Input the authentication code generated by your BNI e-Secure token 
  • You have now successfully added your destination account 
  • Go back to the TRANSFER menu
  • Select TRANSFER TO A BNI ACCOUNT, and then select your destination account from the list
  • Select a Source Account and write the amount you want to top up, and input the authentication code generated by your BNI e-Secure Token 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using a deposit slip: 
Go to the nearest Bank BNI branch, and present it to the teller along with the money you want to deposit. If you are not a BNI customer, you will be required to present your identity card to make a transaction.

 
Add Funds using an transfer slip (*): 

  • Request an overbooking slip from the teller
  • Write the transaction date 
  • In the Recipient field, fill in the Account Holder’s Name with your name as registered in your funder account
  • In the Account Number field, write your Virtual Account Number
  • In the Amount field, write the amount of the loan(s) you are funding
  • In the Sender field, write the depositor’s name and account number and the branch name where the account was opened.  

(*) Identity Card (KTP), ATM and Saving Book is required

(**) Applicable to Indonesian bank account holders 

Follow these steps to transfer funds to your Mekar Account from other banks that are within the online banking network:

  • Select "Other Transaction" Menu
  • Select "Transfer" Menu
  • Select "To Other Bank Account"
  • Enter Bank BNI's bank code (009)
  • Enter your Virtual Account number
  • Enter the amount of funding for the loan you have chosen
  • Select "YES" after you were asked to confirm your name and the amount of transaction, and your transaction is done

Please be informed that transaction from banks within the online banking network will be charged with transaction fee in accordance with each company's regulation.

To add to your funds using Internet Banking services from other bank that are within the online banking network, enter Bank BNI's bank code (009) and then enter your Virtual Account.

(**) Applicable to Indonesian bank account holders

Lenders with an Indonesian bank account, please refer below:

  • Less than IDR 20 million: 4 hours
  • IDR 20 million to 40 million: 24 hours
  • IDR 40 million to 60 million: 48 hours
  • More than IDR 60 million: 72 hours

For lenders without an Indonesian bank account, there is no time limit for when you can make your transfer, but please keep in mind that your funding will start only when your funds are deposited in your Mekar account. So make sure to transfer your funds at your earliest convenience.

From other Indonesian banks = 1 working day

From foreign banks = 1 to 4 working days. Transfers to Indonesia are generally faster (1-3 days).

Transfers back to you will take 2-4 working days.

When you withdraw funds from your Mekar Account, it will take up to 1 (one) business day for the money to appear in your bank account. The amount of time it takes for your money to reach your bank account depends on how quickly your bank processes the transaction. Fund withdrawal with the amount of less than 1 (one) million rupiah will be processed immediately.

All withdrawals are processed during bank business hours. Weekends and/or holidays may delay the process. Therefore, please allow extra time if you make a withdrawal request on a weekend or holiday.

You can earn between 5.00% flat (9% 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 5.00% 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.

Borrowers pay our lending partners about 23% per year. 13% goes to the Lending partner for their work, around 2% to Mekar and about 8% to the lenders. If you fund loans for a longer period of time, you will earn more, but the borrower still pays the same amount.
 
This lending rate may seem high, but the borrowers whose loans you are funding have no collateral and cannot get a regular loan from a bank. In Indonesia a borrower without collateral will usually pay about 36% or more if they want to get an uncollateralized loan from a bank. Their other alternative is to borrow from a loan shark that would charge them about 80% to 300% per year. Our borrowers are therefore happy that they can get a relatively cheap loan via Mekar.

The interest on your loan is fixed. It will not change with changes in the state interest rate that are announced by the Indonesian Central Bank.

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.

In the dashboard, go to the menu “Account” and select “Withdrawals”.

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.

Yes, Indonesian citizens, organizations, and residents will be charged tax (PPh 23) as follows:
  • 15% of earnings if you have a Tax ID number or “NPWP”;
  • 30% of earnings if you do not have an ‘NPWP’.
 
Foreign lenders will be charged 20% of earnings. Most countries have a double taxation treaty with Indonesia, therefore you can present the Mekar Tax receipt as proof of payment.
 
Mekar will provide you with monthly and annual tax receipts (XLS) and proof of tax payment, which can be found in the dashboard, where you can download them. Mekar’s Lending Partner will pay the income tax due, and provide the receipts from the tax office. Mekar shares these with you.

Yes, there are tax deductions and collections in accordance with applicable tax regulations and laws.

Funding A Loan

This all you have to know about funding on Mekar

Mekar offers you a double bonus.

Firstly, Mekar offers you an interest rate which is higher than what you can earn in a bank’s savings account. In Indonesia you can earn 5%-6% on a 12 month time deposit account. With Mekar your annual earnings start at 7% and go up to 12.5%. 

Secondly, your money helps small businesses in Indonesia grow, 90% of our loans are for women micro-entrepreneurs. If you save money at a bank it is very unclear how your money is being used by the bank. At Mekar you can choose who, where and what your money is used for.

Lenders can register on https://mekar.id

Yes, you are welcome to fund loans via Mekar. When you register as a lender in Mekar, Mekar will provide you with a personal account number at Bank BNI in Indonesia to transfer your funds to. You will need to fund a minimum of USD 3000 or Euro 2500 in loans. We have set this minimum amount to ensure you earn enough on your money given the cost of international transfers.
 
You will be notified by Mekar when your funds have been received, you can then start selecting the loans that you want to finance. You will receive a notification when your loans have been repaid and there are idle funds in your Mekar account. You can then use your funds to finance new loans or transfer the money back to your home bank account. Mekar will charge no extra fees for this but do realize that international bank transfers cost money (about USD 60, back and forth), as does inflation (about 3%-4%) and we will deduct 20% tax on your interest earnings. You will receive a receipt for the tax payments, which you can use to show your own tax office as a proof that the tax has already been paid. Most countries have a ‘double taxation treaty’ with Indonesian.

You can fund loans via Mekar once your registration has been checked. Once approved, you will be notified with your Mekar Account number. Then you are ready to fund loans. It should take 4 to 48 hours between registering and being ready to fund loans.

For the Starter Plan, the minimum amount to fund in any single loan is IDR 100,000. Please note that if a loan of your choice is less than IDR 200,000 short from being fully funded, you will need to fund the entire remaining amount of the loan.

 

MEKAR crowdfunds most loans, which means many individual lenders can contribute their funds to successfully fund a loan in MEKAR. You can still fund the entire loan but you also have the option to fund just a portion of the loan starting from IDR 100,000 or more.

From time to time, you might find short term loans of less than 12 months on Mekar's loan list. Mekar does not crowdfund such loans; you will have to fund the entire loan amount.

If a loan fails to fully fund in the allotted 48 hours funding window, we reset its funding progress and relist it on our loan list. It now has 48 more hours to become fully funded. We also credit your funds back to your Mekar Account. You can then fund the same loan again after selecting it from the loan list or select other loans that are closer to being fully funded to start funding faster.
 

All lenders have an account with a dashboard. Click here to log into your account and view your dashboard. On the dashboard, you can see the total amount of money you have lent and made. You can also view your remaining principal on any active funding if you wish.

No, Mekar does not hold your money. The Financial Markets Authority (OJK) does not allow us to. Your money changes places when you transfer/add funds to your Mekar Account, fund a loan and receive repayment from your borrower. 
  • When you transfer money to Mekar, it is kept in a safe “escrow” or Third Party account. Deposits from Indonesia and abroad are held with Bank BNI, one of Indonesia’s four state banks.
  • When you fund one or more loans, your money goes from your “escrow” or deposit account to the Lending Partner's bank account.
  • When your borrower makes a repayment, your money is transferred by the Lending Partner to our payment provider Bank BNI.
At each step Mekar ensures that the transactions are modified in your dashboard.

No, at the moment this is not possible.
 

The Financial Services Authority (OJK) requires all lenders using fintech lending services in Indonesia to sign an agreement with the service provider and one with each of their borrowers. In Mekar’s loan agreements, your borrowers are represented by the lending partners that originated their loans, thus you are only required to sign one loan agreement with each lending partner, if you are funding any of their loans.

We use PrivyID, a third-party digital signature platform, to help you create your digital signature and sign documents online.

As part of the digital signature creation and verification process, we are required to share some of your data that is relevant for those mentioned purposes with PrivyID. The data we are sharing with the digital signature platform PrivyID are lender’s name, email address, selfie image, and ID card (KTP). Mekar does not profit off our users by selling their data to a third party.

To sign your agreements, simply log in to your Mekar account. A pop up window will appear on your screen prompting you to sign the Funding Agreement and/or Loan Agreements, if you haven’t already done so. Follow the instructions on your screen to sign the agreements. 

You can use this quick guide to learn the complete steps to digitally sign your agreements in Mekar. If you need further assistance, contact our Customer Support.
 

You can find the agreement between you and Mekar in your dashboard. To view the agreement, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

You can find the agreements between you and your borrowers (represented by the lending partners that originated their loans) in your dashboard. To view the agreements, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

When you select one or more loans to finance, Mekar will check if you have sufficient funds in your ‘Mekar Account’. If OK, Mekar will withdraw the funds from your Mekar account and transfer it to the Lending Partners managing those loans. If there are not enough funds in your Mekar Account, then we will notify you. You must then add your funds before completing the transaction, or remove some loans from your selection.

A Mekar Account is like your own “virtual bank account” with Mekar. It is not a bank account though. Your Mekar Account number is your ID with Mekar. We use it to manage your top ups, funding transactions, and repayments to your account. There is one Mekar account number for every lender.

This is the amount of available money currently in your Mekar Account. This money is not being used to fund loans. It is sitting there earning no money for you. So it is best to either use it to fund new loans, which we prefer, or to withdraw it. Our system will automatically transfer funds that have been idle for 2 (two) days in your Mekar Account back to your bank account.
 

Add Funds using BNI ATM:

  • On the main menu, select Other Menu
  • On the transaction menu screen, select Transfer
  • On the account menu screen, select From Savings Account
  • On the destination account menu screen, select to a BNI Account/BNI Syariah
  • Enter your Virtual Account number 
  • Enter the amount of the loan(s) you are funding 
  • On the confirmation screen, select Yes 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using Internet Banking:

  • Visit https://ibank.bni.co.id and click Log in
  • Enter your User ID and Password
  • If you are using a desktop computer, select Transactions from the main menu bar. Transfer Inquiry Then select Manage Counterparty and Add Counterparty.
  • Enter your name and your Virtual Account Number. 
  • Input the authentication code generated by your BNI e-Secure token 
  • You have now successfully added your destination account 
  • Go back to the TRANSFER menu
  • Select TRANSFER TO A BNI ACCOUNT, and then select your destination account from the list
  • Select a Source Account and write the amount you want to top up, and input the authentication code generated by your BNI e-Secure Token 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using a deposit slip: 
Go to the nearest Bank BNI branch, and present it to the teller along with the money you want to deposit. If you are not a BNI customer, you will be required to present your identity card to make a transaction.

 
Add Funds using an transfer slip (*): 

  • Request an overbooking slip from the teller
  • Write the transaction date 
  • In the Recipient field, fill in the Account Holder’s Name with your name as registered in your funder account
  • In the Account Number field, write your Virtual Account Number
  • In the Amount field, write the amount of the loan(s) you are funding
  • In the Sender field, write the depositor’s name and account number and the branch name where the account was opened.  

(*) Identity Card (KTP), ATM and Saving Book is required

(**) Applicable to Indonesian bank account holders 

Follow these steps to transfer funds to your Mekar Account from other banks that are within the online banking network:

  • Select "Other Transaction" Menu
  • Select "Transfer" Menu
  • Select "To Other Bank Account"
  • Enter Bank BNI's bank code (009)
  • Enter your Virtual Account number
  • Enter the amount of funding for the loan you have chosen
  • Select "YES" after you were asked to confirm your name and the amount of transaction, and your transaction is done

Please be informed that transaction from banks within the online banking network will be charged with transaction fee in accordance with each company's regulation.

To add to your funds using Internet Banking services from other bank that are within the online banking network, enter Bank BNI's bank code (009) and then enter your Virtual Account.

(**) Applicable to Indonesian bank account holders

Lenders with an Indonesian bank account, please refer below:

  • Less than IDR 20 million: 4 hours
  • IDR 20 million to 40 million: 24 hours
  • IDR 40 million to 60 million: 48 hours
  • More than IDR 60 million: 72 hours

For lenders without an Indonesian bank account, there is no time limit for when you can make your transfer, but please keep in mind that your funding will start only when your funds are deposited in your Mekar account. So make sure to transfer your funds at your earliest convenience.

From other Indonesian banks = 1 working day

From foreign banks = 1 to 4 working days. Transfers to Indonesia are generally faster (1-3 days).

Transfers back to you will take 2-4 working days.

When you withdraw funds from your Mekar Account, it will take up to 1 (one) business day for the money to appear in your bank account. The amount of time it takes for your money to reach your bank account depends on how quickly your bank processes the transaction. Fund withdrawal with the amount of less than 1 (one) million rupiah will be processed immediately.

All withdrawals are processed during bank business hours. Weekends and/or holidays may delay the process. Therefore, please allow extra time if you make a withdrawal request on a weekend or holiday.

You can earn between 5.00% flat (9% 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 5.00% 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.

Borrowers pay our lending partners about 23% per year. 13% goes to the Lending partner for their work, around 2% to Mekar and about 8% to the lenders. If you fund loans for a longer period of time, you will earn more, but the borrower still pays the same amount.
 
This lending rate may seem high, but the borrowers whose loans you are funding have no collateral and cannot get a regular loan from a bank. In Indonesia a borrower without collateral will usually pay about 36% or more if they want to get an uncollateralized loan from a bank. Their other alternative is to borrow from a loan shark that would charge them about 80% to 300% per year. Our borrowers are therefore happy that they can get a relatively cheap loan via Mekar.

The interest on your loan is fixed. It will not change with changes in the state interest rate that are announced by the Indonesian Central Bank.

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.

In the dashboard, go to the menu “Account” and select “Withdrawals”.

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.

Yes, Indonesian citizens, organizations, and residents will be charged tax (PPh 23) as follows:
  • 15% of earnings if you have a Tax ID number or “NPWP”;
  • 30% of earnings if you do not have an ‘NPWP’.
 
Foreign lenders will be charged 20% of earnings. Most countries have a double taxation treaty with Indonesia, therefore you can present the Mekar Tax receipt as proof of payment.
 
Mekar will provide you with monthly and annual tax receipts (XLS) and proof of tax payment, which can be found in the dashboard, where you can download them. Mekar’s Lending Partner will pay the income tax due, and provide the receipts from the tax office. Mekar shares these with you.

Yes, there are tax deductions and collections in accordance with applicable tax regulations and laws.

Funding A Loan

This all you have to know about funding on Mekar

Mekar offers you a double bonus.

Firstly, Mekar offers you an interest rate which is higher than what you can earn in a bank’s savings account. In Indonesia you can earn 5%-6% on a 12 month time deposit account. With Mekar your annual earnings start at 7% and go up to 12.5%. 

Secondly, your money helps small businesses in Indonesia grow, 90% of our loans are for women micro-entrepreneurs. If you save money at a bank it is very unclear how your money is being used by the bank. At Mekar you can choose who, where and what your money is used for.

Lenders can register on https://mekar.id

Yes, you are welcome to fund loans via Mekar. When you register as a lender in Mekar, Mekar will provide you with a personal account number at Bank BNI in Indonesia to transfer your funds to. You will need to fund a minimum of USD 3000 or Euro 2500 in loans. We have set this minimum amount to ensure you earn enough on your money given the cost of international transfers.
 
You will be notified by Mekar when your funds have been received, you can then start selecting the loans that you want to finance. You will receive a notification when your loans have been repaid and there are idle funds in your Mekar account. You can then use your funds to finance new loans or transfer the money back to your home bank account. Mekar will charge no extra fees for this but do realize that international bank transfers cost money (about USD 60, back and forth), as does inflation (about 3%-4%) and we will deduct 20% tax on your interest earnings. You will receive a receipt for the tax payments, which you can use to show your own tax office as a proof that the tax has already been paid. Most countries have a ‘double taxation treaty’ with Indonesian.

You can fund loans via Mekar once your registration has been checked. Once approved, you will be notified with your Mekar Account number. Then you are ready to fund loans. It should take 4 to 48 hours between registering and being ready to fund loans.

For the Starter Plan, the minimum amount to fund in any single loan is IDR 100,000. Please note that if a loan of your choice is less than IDR 200,000 short from being fully funded, you will need to fund the entire remaining amount of the loan.

 

MEKAR crowdfunds most loans, which means many individual lenders can contribute their funds to successfully fund a loan in MEKAR. You can still fund the entire loan but you also have the option to fund just a portion of the loan starting from IDR 100,000 or more.

From time to time, you might find short term loans of less than 12 months on Mekar's loan list. Mekar does not crowdfund such loans; you will have to fund the entire loan amount.

If a loan fails to fully fund in the allotted 48 hours funding window, we reset its funding progress and relist it on our loan list. It now has 48 more hours to become fully funded. We also credit your funds back to your Mekar Account. You can then fund the same loan again after selecting it from the loan list or select other loans that are closer to being fully funded to start funding faster.
 

All lenders have an account with a dashboard. Click here to log into your account and view your dashboard. On the dashboard, you can see the total amount of money you have lent and made. You can also view your remaining principal on any active funding if you wish.

No, Mekar does not hold your money. The Financial Markets Authority (OJK) does not allow us to. Your money changes places when you transfer/add funds to your Mekar Account, fund a loan and receive repayment from your borrower. 
  • When you transfer money to Mekar, it is kept in a safe “escrow” or Third Party account. Deposits from Indonesia and abroad are held with Bank BNI, one of Indonesia’s four state banks.
  • When you fund one or more loans, your money goes from your “escrow” or deposit account to the Lending Partner's bank account.
  • When your borrower makes a repayment, your money is transferred by the Lending Partner to our payment provider Bank BNI.
At each step Mekar ensures that the transactions are modified in your dashboard.

No, at the moment this is not possible.
 

The Financial Services Authority (OJK) requires all lenders using fintech lending services in Indonesia to sign an agreement with the service provider and one with each of their borrowers. In Mekar’s loan agreements, your borrowers are represented by the lending partners that originated their loans, thus you are only required to sign one loan agreement with each lending partner, if you are funding any of their loans.

We use PrivyID, a third-party digital signature platform, to help you create your digital signature and sign documents online.

As part of the digital signature creation and verification process, we are required to share some of your data that is relevant for those mentioned purposes with PrivyID. The data we are sharing with the digital signature platform PrivyID are lender’s name, email address, selfie image, and ID card (KTP). Mekar does not profit off our users by selling their data to a third party.

To sign your agreements, simply log in to your Mekar account. A pop up window will appear on your screen prompting you to sign the Funding Agreement and/or Loan Agreements, if you haven’t already done so. Follow the instructions on your screen to sign the agreements. 

You can use this quick guide to learn the complete steps to digitally sign your agreements in Mekar. If you need further assistance, contact our Customer Support.
 

You can find the agreement between you and Mekar in your dashboard. To view the agreement, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

You can find the agreements between you and your borrowers (represented by the lending partners that originated their loans) in your dashboard. To view the agreements, login to your Lender account, click your name at the top right corner of the page and select “Agreement” from the drop down menu.

When you select one or more loans to finance, Mekar will check if you have sufficient funds in your ‘Mekar Account’. If OK, Mekar will withdraw the funds from your Mekar account and transfer it to the Lending Partners managing those loans. If there are not enough funds in your Mekar Account, then we will notify you. You must then add your funds before completing the transaction, or remove some loans from your selection.

A Mekar Account is like your own “virtual bank account” with Mekar. It is not a bank account though. Your Mekar Account number is your ID with Mekar. We use it to manage your top ups, funding transactions, and repayments to your account. There is one Mekar account number for every lender.

This is the amount of available money currently in your Mekar Account. This money is not being used to fund loans. It is sitting there earning no money for you. So it is best to either use it to fund new loans, which we prefer, or to withdraw it. Our system will automatically transfer funds that have been idle for 2 (two) days in your Mekar Account back to your bank account.
 

Add Funds using BNI ATM:

  • On the main menu, select Other Menu
  • On the transaction menu screen, select Transfer
  • On the account menu screen, select From Savings Account
  • On the destination account menu screen, select to a BNI Account/BNI Syariah
  • Enter your Virtual Account number 
  • Enter the amount of the loan(s) you are funding 
  • On the confirmation screen, select Yes 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using Internet Banking:

  • Visit https://ibank.bni.co.id and click Log in
  • Enter your User ID and Password
  • If you are using a desktop computer, select Transactions from the main menu bar. Transfer Inquiry Then select Manage Counterparty and Add Counterparty.
  • Enter your name and your Virtual Account Number. 
  • Input the authentication code generated by your BNI e-Secure token 
  • You have now successfully added your destination account 
  • Go back to the TRANSFER menu
  • Select TRANSFER TO A BNI ACCOUNT, and then select your destination account from the list
  • Select a Source Account and write the amount you want to top up, and input the authentication code generated by your BNI e-Secure Token 
  • Follow the instruction that is shown on the screen to complete the transaction

Add Funds using a deposit slip: 
Go to the nearest Bank BNI branch, and present it to the teller along with the money you want to deposit. If you are not a BNI customer, you will be required to present your identity card to make a transaction.

 
Add Funds using an transfer slip (*): 

  • Request an overbooking slip from the teller
  • Write the transaction date 
  • In the Recipient field, fill in the Account Holder’s Name with your name as registered in your funder account
  • In the Account Number field, write your Virtual Account Number
  • In the Amount field, write the amount of the loan(s) you are funding
  • In the Sender field, write the depositor’s name and account number and the branch name where the account was opened.  

(*) Identity Card (KTP), ATM and Saving Book is required

(**) Applicable to Indonesian bank account holders 

Follow these steps to transfer funds to your Mekar Account from other banks that are within the online banking network:

  • Select "Other Transaction" Menu
  • Select "Transfer" Menu
  • Select "To Other Bank Account"
  • Enter Bank BNI's bank code (009)
  • Enter your Virtual Account number
  • Enter the amount of funding for the loan you have chosen
  • Select "YES" after you were asked to confirm your name and the amount of transaction, and your transaction is done

Please be informed that transaction from banks within the online banking network will be charged with transaction fee in accordance with each company's regulation.

To add to your funds using Internet Banking services from other bank that are within the online banking network, enter Bank BNI's bank code (009) and then enter your Virtual Account.

(**) Applicable to Indonesian bank account holders

Lenders with an Indonesian bank account, please refer below:

  • Less than IDR 20 million: 4 hours
  • IDR 20 million to 40 million: 24 hours
  • IDR 40 million to 60 million: 48 hours
  • More than IDR 60 million: 72 hours

For lenders without an Indonesian bank account, there is no time limit for when you can make your transfer, but please keep in mind that your funding will start only when your funds are deposited in your Mekar account. So make sure to transfer your funds at your earliest convenience.

From other Indonesian banks = 1 working day

From foreign banks = 1 to 4 working days. Transfers to Indonesia are generally faster (1-3 days).

Transfers back to you will take 2-4 working days.

When you withdraw funds from your Mekar Account, it will take up to 1 (one) business day for the money to appear in your bank account. The amount of time it takes for your money to reach your bank account depends on how quickly your bank processes the transaction. Fund withdrawal with the amount of less than 1 (one) million rupiah will be processed immediately.

All withdrawals are processed during bank business hours. Weekends and/or holidays may delay the process. Therefore, please allow extra time if you make a withdrawal request on a weekend or holiday.

You can earn between 5.00% flat (9% 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 5.00% 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.

Borrowers pay our lending partners about 23% per year. 13% goes to the Lending partner for their work, around 2% to Mekar and about 8% to the lenders. If you fund loans for a longer period of time, you will earn more, but the borrower still pays the same amount.
 
This lending rate may seem high, but the borrowers whose loans you are funding have no collateral and cannot get a regular loan from a bank. In Indonesia a borrower without collateral will usually pay about 36% or more if they want to get an uncollateralized loan from a bank. Their other alternative is to borrow from a loan shark that would charge them about 80% to 300% per year. Our borrowers are therefore happy that they can get a relatively cheap loan via Mekar.

The interest on your loan is fixed. It will not change with changes in the state interest rate that are announced by the Indonesian Central Bank.

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.

In the dashboard, go to the menu “Account” and select “Withdrawals”.

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.

Yes, Indonesian citizens, organizations, and residents will be charged tax (PPh 23) as follows:
  • 15% of earnings if you have a Tax ID number or “NPWP”;
  • 30% of earnings if you do not have an ‘NPWP’.
 
Foreign lenders will be charged 20% of earnings. Most countries have a double taxation treaty with Indonesia, therefore you can present the Mekar Tax receipt as proof of payment.
 
Mekar will provide you with monthly and annual tax receipts (XLS) and proof of tax payment, which can be found in the dashboard, where you can download them. Mekar’s Lending Partner will pay the income tax due, and provide the receipts from the tax office. Mekar shares these with you.

Yes, there are tax deductions and collections in accordance with applicable tax regulations and laws.
Still have questions?

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Yearly Feedback Report

Based on Financial Services Authority (OJK) Regulation No. 18 /POJK.07/2018 & SE OJK No. 17 /SEOJK.07/2018 Concerning Consumer Complaint Services in the Financial Services Sector, PT. Mekar Investama Teknologi has handled consumer complaints, here’s the report:
Handling Period:
No. Types of Financial Transactions Completed In Progress Not Completed Total Complaints
Total Percentage Total Percentage Total Percentage
1 Information Technology Based Joint Funding Services 3010 100% 0 0% 0 0% 3010
Total 3010 100% 0 0% 0 0% 3010
DISCLAIMERS:
  1. Information Technology-Based Lending Service is a civil agreement between the Funder and the Lender. Therefore all risks incurred from the agreement shall be borne entirely by the respective parties.
  2. The credit risk or debt default shall be borne entirely by the Funder. No government body or authority will take responsibility for this default risk.
  3. The Organizer, under the consent of the respective users (the Funder and/or the Lender), accesses, gains, keeps, manages and/or uses the Users’ personal data (“Data Usage”) on or in the objects, electronic devices (including smartphones or cellphones), hardware or software, electronic documents, applications or electronic systems owned by or under the control of the Users, by informing the objective, boundaries and mechanism of the aforementioned Data Usage to the related Users before making the said agreement.
  4. The Funder with no knowledge and experience concerning lending is advised not to use this service.
  5. The Lender must take into account the interest rate of the loan and other costs incurred corresponding to his/her ability in repaying the loan.
  6. Every fraudulence will be recorded digitally in the cyberspace and will be accessible to the general public through social media.
  7. The User must read and fully understand this information before deciding to become a Funder or Lender.
  8. The Government, in this case represented by the Indonesian Financial Services Authority (OJK), shall not be held accountable of every violation or disobedience committed by the Funder or the Lender (whether it is intended or due to the User’s negligence) against the regulations, the agreement or the bond between the Organizer and the Funder and/or the Lender.
  9. Every lending transaction and activity or the agreement implementation concerning lending between or those involving the Organizer, the Funder and/or the Lender must be carried out through an escrow account and a virtual account as regulated in the Financial Authority Services Regulation Number 10/POJK.05/2022 about Information Technologi-Based Joint Funding Services, and any violation and disobedience of the regulation shall be considered as evidence of a violation of law committed by the Organizer. Therefore, the Organizer must bear any liability suffered by the Users as a direct result of the violation of law as mentioned above without reducing the rights of the Users that have suffered losses as stipulated in the Indonesian Civil Law.
  10. BE CAUTIOUS, THIS TRANSACTION INVOLVES HIGH RISK. YOU MAY EXPERIENCE LOSSES OR LOSE MONEY. DO NOT BORROW IF YOU DO NOT HAVE THE ABILITY TO REPAY. CONSIDER CAREFULLY BEFORE MAKING THE TRANSACTION.

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