Frequently Asked Questions
Find quick answers for questions you need help with.
Indonesians who are at least 17 years old and subject to the laws of Indonesia. Other than that, Indonesians who live abroad and foreigners who are domiciled in Indonesia could become Lenders at KoinWorks.
Upon registration and account verification process, you can browse for your potential Borrowers. Click here to register as a Lender.
The progress bar indicates funding progress for current active loan requests. If the progress bar reaches 100%, it indicates that the loan request already has the desired amount of fund and can no longer accept any bid.
You can place your bid starting from IDR100.000. You can choose to bid in one or multiple loans at the same time. There is no limit for how many loans you can choose, but to secure your bids make sure you have the right amount of fund/balance in your account before placing your bid.
KoinWorks officially registered and supervised by Otoritas Jasa Keuangan (OJK) since April 27, 2017. As an information technology-based, peer to peer lending (P2P Fintech Lending) lending service provider, KoinWorks is officially registered in the administration of the Directorate of Institutional and Product Financial Services Authority IKNB (OJK) with registration number S-1862 / NB.111 / 2017.
KoinWorks has met all authority standards related to electronic systems, risk mitigation, labor eligibility and other supporting infrastructure for operational activities. Also, KoinWorks has prepared protection funds for lenders to minimize theft or loss of funding capital in the event of default. Remember, that investing activities also have risks.
KoinWorks has taken precaution steps to protect Lenders’ funds if a Borrower passes away while the loan is still active. We are in partnership with Bank Mega and Sinarmas to provide life insurance for every Borrower during the whole repayment process.
When a Borrower miss several payments more than 90 days and is no longer willing to continue their payment, the loan will labeled as a loan in default. When a loan is late or has defaulted, KoinWorks Collection Team will attempt to collect the outstanding payments using the best practices in the industry and as is regulated by Indonesian law.
At KoinWorks you lend directly to real people and real businesses, not in abstract financial paper products. Our Borrowers apply for loans for constructive purposes, such as growing their business, getting their finances into a better shape, and education. All KoinWorks Borrowers must complete several screening and verification processes to get a loan. They will be also put through a credit analysis process that include Borrower’s credit reports, loan applications, and our proprietary algorithm to evaluate their credibility and ability to service the loan. Keep in mind that our loans have different grades, categorized based on their different levels of risk.
We cut the costs and inefficiencies prevalent in traditional banking and give more values to Borrowers and Lenders. Creditworthy Borrowers are connected to Lenders who look for better returns.
Once Borrowers applications get verified and evaluated, KoinWorks determines the credit scoring and interest rate. After that, the loan request is presented to Lenders for open bid.
Defaults is a part of a reality in lending activities as there are always risks that Borrowers cannot repay their loans. We advise that Lenders read the information here and in other sources so that they thoroughly understand the risks associated with lending their money.
Given these risks, KoinWorks manages risk in a number of ways:
Quality and Rating
We use Big Data to complement or replace conventional methods and run our proprietary algorithm. Only qualified borrowers are approved. For qualified Borrowers, we assign credit grades on loans that pass our credit assessment. Loans are graded from A to E based on their risk level with 5 subgrades each. Riskier loans are assigned higher interest rates to compensate the lenders for taking more risk.
As part of our commitment to protect Lenders, KoinWorks sets aside capital to set up the fund and will forego part of our revenues to continue adding to it. The fund is dedicated to limit the losses from our Lenders in the event of borrower default.
Because our Platform enables you to fund loans in small increments, you can spread your funds into various allotments of loans with different risks, interest rates, lengths, industries and other differentiating features which will fit your lending goals.
We work with great partners to ensure better-quality underwriting of loans and to provide a better experience for our members.
All data sent from your browser to our websites is encrypted using industry standard SSL. Our websites and databases are hosted in a secure data center, are encrypted and are regularly backed up. The data center operates firewalls and other security mechanisms which are maintained and monitored. The access to your account is through a password protected mechanism and using OTP SMS sent to your mobile phone.
Once you’ve joined as a Lender, you can lend starting from IDR100.000. There is no maximum to your lending, but we advise you to diversify your lending to a multitude of loans.
Once you have registered and activated your account, you will be assigned with a unique virtual account. The information of your virtual account can be found on the Lender’s dashboard.
Your available cash can be withdrawn anytime you want through Lender’s dashboard. Once you request a withdrawal, the fund will be transferred to your bank account.
Please note that your funding will earn different returns based on the Grade as stated below:
A = from 12%
B = from 15%
C = from 18%
D = from 21%
E = from 24%
Ungraded = from 38%
If you fund with repayment in the form of monthly instalment, Lenders could be able to receive 3% per month from the available outstanding fee after 7 days. Meanwhile, if you fund with repayment in the form of lumpsum, Lenders could be able to receive one time daily interest calculated from the first day of late.
Auto Purchase is a lending assistant to help you lend your fund based on the instructions or filters you have determined.
Through this feature, Lenders can determine loan preferences based on Loan Type, Grade, Tenor, Return Method, Funding Amount and the feature will automatically distribute the fund. In order for the Auto Purchase to run smoothly, the Lenders must have an Available Funds (KOIN or transferred funds) beforehand. Later, whenever a loan is in accordance with the preference issued to the KoinWorks platform, the predetermined amount of funding will be automatically distributed.
Yes it is, 1% fee of each repayment for monthly instalment and 5% fee charged from interest for lumpsum repayment.
If you fund with KOIN, KOIN will be returned to your account and period will be back to 30 days. After that, you can be able to fund again.
In KoinWorks, we will give freedom to all Lenders to choose their funding based on preferences such as Grade and Tenor.
Yes, KoinWorks, which is under the auspices of PT Lunaria Annua Teknologi as a provider of information technology-based lending and borrowing services, peer to peer lending (P2P Fintech Lending), officially registered in the administration of the Financial Services Authority’s Direktorat Kelembagaan dan Produk IKNB with registration number S-1862 /NB.111/2017.
Loan Restructuring is a step taken by KoinWorks and Borrowers to prevent defaults by extending the duration of the loan tenor. This happened to ease the Borrower’s monthly installment burden by extending the loan period while reducing the nominal repayments per month. With this step, KoinWorks and the Borrower can reduce the risk of loss of Funding funds so that the allocated funds can be returned fully, only with a longer duration.