ImpactAlpha, May 15 – Indonesia has a growing population of newly banked adults who have access to only a small range of financial products. Jakarta-based Julo connects borrowers to short-term, unsecured cash loans using an algorithm it developed to assess customers’ credit-worthiness.
- Short-term loans… Julo offers loans of up to 10 million rupiah ($715) through a peer-to-peer network. For three- to six-month loans it charges interest of between 1.5% and 4% per month. For one-month loans, the interest rate is 0.33% per day.
- Defaults… A proprietary credit assessment allows the company to offer comparatively low interest rates and keep its non-performing loan ratio in the low single digits, according to DealStreet Asia.
- Funding round… The investment was led by Skystar Capital and East Ventures. Other investors include Gobi Partners, Convergence Ventures, Provident Capital, Central Capital Ventura, Heyokha Brothers.
Julo’s lending platform is available to Android smartphone users with a bank account. It says it processes 10,000 applications per month. The new funding follows a seed round last August in which Julo raised an undisclosed amount.