What is Amartha?
Amartha is an Indonesian fintech company focused on providing microfinance services to women micro-entrepreneurs in rural areas and mentoring to the unbanked living below the poverty line.
Amartha’s business model:
As a peer-to-peer lending platform, amartha.com connects lenders (both individuals and institutions) with borrowers in rural areas who need small working capital. We screen potential borrowers using an original credit scoring system, combined with a traditional scorecard system to measure ability to repay, and psychometric methods to measure willingness to pay.
All this data is embedded in an Android-based application and used by our district administrators to conduct due diligence in remote villages. Once a potential borrower is screened and approved, the loan application will be displayed on our marketplace platform and ready to be funded by a lender.
Lenders can choose from potential borrowers based on risk profile, as indicated by each borrower's credit score, or based on loan amount or where the borrower lives. Borrowers can repay the loan in installments online through a virtual account. Once a borrower obtains funds online, our regional administrators will provide cash within a week.
Every week, our regional administrators hold a meeting with the borrowers (usually 15-20 female borrowers). Repayments and loan disbursements are made at this group meeting, and all of these transactions are in cash.
In addition to trading, our administrators will teach these female entrepreneurs basic financial literacy and general business knowledge.
Amartha's development history:
When we started operations in April 2016, we were disbursing $40,000 in loans per month.
By the end of 2016, we had distributed a total of $800,000.
As of 2017, more than $13 million in loans have been disbursed to 60,000 borrowers.
As of 2018, Amartha has facilitated loan disbursements of IDR 700 billion and served over 167,000 micro-entrepreneurs.
This is the end of the information about Amartha in this issue. If you want to get more information about Amartha, please pay attention and we will continue to answer your questions~
