Receiving Funding from PayFazz, Modal Rakyat will Distribute Loans
The Modal Rakyat finance technology (fintech lending) company has secured funding from the PayFazz business unit, namely Fazz Financial Group (FFG).
This unspecified value of funding will be utilized by Modal Rakyat to channel business loans to Micro, Small, and Medium Enterprises or SME agencies.
Modal Rakyat will channel the loan through the Modal Mikro product on the platform. Lending for SMEs ranges from IDR 500 thousand to IDR 2 million with a loan duration of 14 days.
Meanwhile, lending will target agency partners under the auspices of PayFazz. Credit assessments will also be carried out based on analysis of agent transaction data in the Payfazz application.
“We hope that this loan facility can further strengthen the synergy of all our products and support the provision of inclusive financial services,” said Fazz Financial Group Managing Director and PayFazz CEO Hendra Kwik in a press release today (3/4).
As for how to get funding from Modal Rakyat, you must register and open an account at www.modalrakyat.id, and through verification of Identity Cards (KTP) and Taxpayer Identification Number (NPWP).
Has Collaborated since 2018
Until now, PayFazz has more than 250 thousand active agents throughout Indonesia. PayFazz is a fintech company that provides agency-based financial applications.
Meanwhile, Fazz Financial Group is an entity resulting from PayFazz’s US$ 30 million strategic investment in Singapore-based fintech company Xfers.
PayFazz formed Fazz Financial Group to oversee the joint mission of providing financial access and inclusion through its services throughout Southeast Asia.
On the other hand, for Modal Rakyat, this agent-based loan is one of its strategic steps to expand the reach of its users.
“Our mission in realizing financial inclusion certainly requires synergy with many parties,” said the Managing Director of Modal Rakyat Hendoko Kwik.
Previously, since 2018 Modal Rakyat has collaborated with PayFazz in making Modal Mikro (micro capital) loan product on its platform. This product is a distribution of financing to food stalls and credit traders throughout Indonesia.
As of last April, there were 32,399 microloan applications in Modal Rakyat with total disbursements of more than IDR 29 billion. As much as 67.54% of the distribution was in Java Island and 32.46% outside Java Island.
Funding from Fazz Financial Group is also in line with the new licensed status of Modal Rakyat at the end of April.
Modal Rakyat Already Received Permit from OJK
PT Modal Rakyat Indonesia (Modal Rakyat) as a financial technology or fintech company engaged in peer-to-peer lending, officially obtained a business license from the Financial Services Authority (OJK) based on decree KEP-27 / D.05 / 2021 dated 21 April 2021.
Hendoko Kwik as the President Director of Modal Rakyat said that this licensing was a strategic step to increasingly reach all regions in distributing financing to MSME players.
“From a technology standpoint, we can continue to strive for product development. Modal Rakyat hopes to embrace more and more strategic partners, both financial companies, startups, and other entities,” Hendoko said in a press release, Monday (3/5/2021).
The total distribution of Modal Rakyat to date has reached more than IDR 1.2 trillion to more than 25,000 MSME players spread across 34 provinces. The Modal Rakyat is indeed intensively collaborating this year.
Last April, Modal Rakyat collaborated with e-commerce Bukalapak to provide MSME loans. Loans given up to IDR 2 billion.
Then, last February, Modal Rakyat also collaborated with the Community Mandiri People’s Credit Bank (BPR), known as Bank MM. Through this collaboration, Bank MM is committed to channeling financing through Modal Rakyat.
The financing will be focused on MSMEs registered in Modal Rakyat. The distribution is IDR 100 million to IDR 2 billion, with a loan duration of one to six months.