- Only available to Gadjian users’ employees
- Covers loans up to six times an employee’s salary
INDONESIAN peer-to-peer lending startup KoinWorks collaborates with payroll management platform Gadjian to launch an employee loan feature.
Through this feature, employees of companies managed on Gadjian’s platform will be able to apply for short-term loans from KoinWorks and repay it through instalments deducted from their salary.
“This employee loan feature is an extension of the cash advance (‘kas bon’) feature which we already have and is used quite actively by our users. Through this new feature, our users can offer short-term loan facilities to their employees without burdening the company’s finances,” explains Gadjian chief executive officer and co-founder Afia R Fitriati.
KoinWorks chief executive officer and co-founder Benedicto Haryono says that his platform will cover up to six times the employee’s salary, with interest rates from 1% to 1.5%, and payment terms from six months to a year.
“This partnership also allows employees to earn a more competitive interest rate, helping them to stay focused and productive on their job when an urgent financial need arises”
To use this feature, a Gadjian user company must first register with KoinWorks via its new “Benefide” on the Gadjain platform. This feature is only available to Gadjian users.
After the registration is approved, the user’s employees may apply for loans through their Gadjian Employee Self Service (ESS) dashboard under approval from the company’s hiring department.
This collaboration enables loan applications to be processed faster, as the supporting data will be automatically shared by Gadjian with KoinWorks when an employee applies for a loan and consents to the data release.
The monthly instalment schedule can be monitored on the Gadjian platform, while payment will be automatically deducted from the employee’s salary and deposited at KoinWorks.
Launched in mid-2016, Gadjian is a cloud-based payroll and HR operations platform for SMEs and lean enterprises. It now serves 300 to 500 companies, with 6,000 to 10,000 employees.
As a P2P lender that also offers loans for SMEs and education, KoinWorks now has 50,000 lenders with total loans of approximately 170 billion rupiah (US$12 million).
KoinWorks sets up Protection Fund for lenders
KoinWorks supports SMEs with online lending solution
KoinWorks launches new programme with Binus Online Learning
Small loans to tide you over till payday
For more technology news and the latest updates, follow us on Facebook, Twitter or LinkedIn