Mekar News

Mekar Invites Microfinance Institutions to Work Together in Financing Indonesian MSMEs

Microfinance institutions like cooperatives and rural banks play a big role in financial inclusion in Indonesia. A huge part of the country’s population are still outside the formal banking system and MFIs are equipped to reach these “unbanked” masses. Unfortunately, many face difficulties in finding reliable, alternative sources of funds.

But such a challenge is fast becoming a thing of the past, thanks to technology and hyperconnectivity. Today, MFIs in Indonesia can get the funding they need to cater to a larger network of borrowers simply by partnering up with Mekar, a peer to peer lending platform that facilitates the investment of billions of rupiah every month in business loans to Indonesian MSMEs. As a lending partner with Mekar, savings and loan cooperatives (KSP) or rural banks (BPR) will have access to a reliable source of funding to be used towards funding loans to their respective borrowers.

Like other P2P platforms, Mekar works by connecting investors (also called “funders”) all over Indonesia with borrowers. Among the things that make Mekar different from the rest is that it partners with microfinance institutions like KSP and BPR with operations in many regions across Indonesia in finding borrowers, managing their loans and collecting loan repayments.

Mekar currently partners with two of the best savings and loan cooperatives in Indonesia, namely Koperasi Mitra Dhuafa and Koperasi Abdi Kerta Raharja. As a Lending Partner with Mekar, both cooperatives have been able to cater to a bigger number of borrowers and expand their portfolios. This coming week, Mekar is slated to add Koperasi Karya Usaha Mandiri Syariah (KUM Syariah) to its growing list of Lending Partners. In addition, partnerships with two other cooperatives, BMT itQan and KPS Sahabat Mitra Sejati, are in the pipeline.

Simple and Easy

A partnership with Mekar is a very simple process as Mekar does not require its lending partners to generate collateral loans to be funded through Mekar. A lending partner, however, must agree to provide the funders in Mekar with a guarantee to protect the principal portion of their loan.

Registering your KSP or BPR as a Lending Partner with Mekar is easy too. Just send Mekar an email with your contact details or fill a simple Form by clicking the green button below. A representative from Mekar will arrange a meeting to discuss further about the partnership.