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View all search resultsBad loans in P2P lending breaches OJK’s 5% cap
Annual growth in outstanding loan at peer-to-peer lending firms also slowed to 17.02 percent in September from 22.07 percent in August.
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A user looks at peer-to-peer (P2P) lending app AdaKami on Sept. 10, 2024. (JP/Muhammad Zaenuddin)
T
he bad loans rate at fintech peer-to-peer (P2P) lending platforms has continued to rise over the past year and has now breached the Financial Services Authority’s (OJK) safety threshold of 5 percent.
According to the latest OJK data, the ratio of loans that are at least 90 days past due (TWP90) to total loans climbed to 5.36 percent in September from 4.73 percent a month earlier. This marks a sharp increase from 2.82 percent in September of last year.
Meanwhile, year-on-year (yoy) growth in outstanding loan at P2P lending firms slowed to 17.02 percent in September from 22.07 percent yoy in August.
The volume of outstanding loans reached Rp 106.48 trillion (US$5.87 billion).
The OJK’s supervisor for multifinance, venture capital and other financial services, Agusman, said in a press conference on Thursday that the agency would continue to monitor the overall quality of the industry.
“The OJK will push for healthy, inclusive and sustainable industry growth that prioritizes financing quality, strengthened risk management and consumer protection,” he said.
Read also: P2P lending surges in March, but bad loans still high
