- Programme targets working adults seeking to further their education
- Covers up to 80% of tuition fees, offers loans with 9-12.5% interest for the rest
INDONESIAN peer-to-peer (P2P) lending startup KoinWorks launches a new programme under its KoinPintar category of loans in collaboration with Binus Online Learning.
KoinWorks chief executive officer and co-founder Benedicto Haryono says that this partnership with the world of education is very strategic for the achievement of the company’s mission.
“Through this step, KoinWorks can help to increase the number of skilled and ready-to-use human resources through various educational programmes that are now easily accessible,” he explains.
Through cooperation with various partners, KoinWorks provides convenience in terms of tuition fees that can be paid for individuals and professionals who want to continue their studies.
KoinWork’s investors are allowed to list down requirements for borrowers and their algorithm will pick a suitable one for investors to invest in.
Benedicto says that KoinWorks will cover a maximum of 80% of the fees based an applicant’s finances. Loans with a flat interest rate between 9% to 12.5% will be offered to cover the rest.
Benedicto feels there are many factors behind why people do not continue their studies to the tertiary level and the main reason is financial. This is one reason why the programme targets working adult.
“Besides having an income, I think working adults have maturity and responsibility in making decisions. This means, they will not easily change their major because they know what they want,” he says.
Other than “maturity” as a qualitative requirement, applicants have to be at least 21-years-old.
There are two ways to apply for this programme. People can apply directly at Binus Online Learning or through KoinWorks’ website. A credit assessment will be conducted by KoinWorks and if the applicant is approved and registered at a tertiary educational institute, KoinWorks will transfer the fees to the institute.
Programmes are available for those seeking a Bachelor’s, Master’s and Doctoral degrees. Each degree will have different durations and KoinWorks offers instalment payment from six to 24 months.
“Usually it will take four years to complete a Bachelor’s degree programme in Indonesia. The reason why we offer instalments for half the period is because they might be able to repay after two years of studying and they can always choose to extend the loan process after 24 months,” Benedicto explains.
Binus Online Learning director Engkos Achmad Kuncoro says that most students in the online learning programme have savings of at least one million to 1.5 million rupiah from their income before enrolling in this programme.
“We know that higher education will require more money, and we also want to offer better education for those who have financial or time issues, especially those who live outside Jakarta. KoinWorks can help us to reach them,” he adds.
All learning will be done online, unless students have to physically come to campus for examinations.
Study programmes are available for Management Studies, Industrial Engineering, Accounting, Computer Science, and Systems Information.
KoinWorks also partners up with several universities and skill-based schools to deliver more options for their users who want to learn about patisserie, beauty, animation, digital marketing, and design.
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