The term peer to peer or P2P loan system may not be too popular in Indonesia because this is still relatively new in this country. Loans with P2P systems are money lending systems to individuals or businesses online which on the service provider site and P2P loan facilities will match between lenders or investors (creditors) and loan seekers (debtors). From this brief explanation, you should understand the practice of borrowing with a P2P system involving at least three related parties, namely debtors, creditors, and P2P facility providers.
Although the existence of this lending system seems like an online dating agency that brings together a man who matches a woman, however, you should not have such thoughts. This is very different because the site is not only used as a meeting place for debtors and creditors, but this P2P facility is used by prospective creditors to find out more deeply about prospective debtors available on P2P provider sites which are the best quality and trusted borrowers . Thus, P2P loan facility service providers and sites also carry out a fairly rigorous screening process for prospective borrowers so that creditors will feel more comfortable with loan products from the P2P system provider.
Advantages offered by the peer to peer or P2P system
One is that prospective debtors can get easier and more convenient access to the loan applications that are needed because they don’t need to mess around with various banking systems and rules that are usually quite complicated. However, you should also understand that not all P2P loan facility sites have the same quality so that as a potential debtor, you should be able to be careful and thorough in choosing P2P loan provider sites.
Apart from the prospective debtor, the benefits of choosing a peer to peer lending system can also be felt by investors or creditors as loan providers. These creditors can certainly benefit from either interest or return on capital. In fact, the P2P loan scheme can also be used as an investment with fixed returns. These benefits can also be obtained by sites that provide P2P system facilities because facility providers can benefit from a portion of the interest paid by debtors. In fact, some P2P loan provider sites set administrative fees from debtors.
Lending with P2P or peer to peer lending system
It may not be quite popular. However, if you want to get to know more about the lending system, you can see the practice in China which is already very widespread. In fact, with the increasing number of sites that provide P2P facilities, the Chinese government has made a limitation by tightening the rules of P2P sites providing loan facilities. One of the most feared factors in the P2P lending system is the risk of unpaid debt. This risk is most felt by the lender or creditor where when the debtor has difficulty in paying the loan and even fails to pay the loan, he will lose his investment capital. However, there is usually a special contract between the debtor and the creditor that is ratified by a certain legal deed to safeguard any unwanted possibilities.
Some Indonesians may be interested in using peer to peer lending
Practices rather than the banking lending system because submitting a loan application to a bank requires a relatively long time and a complicated process. For loans with a P2P loan system can be done online anytime and anywhere and the time for submission until the approval of the application is relatively short. However, you might still find it difficult to find sites that provide loan facilities with P2P systems because it is still quite rare. OJK or the Indonesian Financial Services Authority is very strict in supervising lending activities to prevent the practice of loan sharks which harm the debtor or practices that could harm the creditor.