Bridging Property "Backlog" Problems with Fintech

The population that continues to grow in Indonesia has an impact on the increasing need to own property as a primary need. However, Indonesia still has problems backlog (the gap between the number of houses built and the number of houses needed). From a survey, it happened backlog 13,5 million housing units, but less than 25% of the total population can afford it.

This inability occurs due to a lack of adequate financial capacity. Moreover, almost 60% of the population works in the informal sector. In fact, every year the need to buy a house continues to grow to 800 thousand units. The solution given by the government is considered not comprehensive, because it can only "patch" with 400-500 housing units.

In this #TuesdayStartup session, DailySocial presenting Co-Founders Gradana, Angela Oetama. Gradana is a startup fintech p2p lending which brings together borrowers and lenders to repay DP (down payment) home purchase. Angela talked more about how financial technology presented by Gradana can solve the problem backlog in Indonesia.

Connecting ecosystems in one platform

In concept, p2p loans linking borrowers and lenders. But in Gradana there is a difference. The company connects property buyers, property owners, lenders, property developers, property tenants, property vendors, to property agents in one platform.

The ecosystem that is formed is associated with each product that is Gradana provide. There are GraDP, GraSewa, and GraKarya.

"Each stakeholder that we embrace will ultimately benefit from the technology we provide," said Angela.

Take for example, borrowers can get a house without having to worry about how to pay a down payment with GraDP. Then with GraSewa borrowers who want to rent a property can get the unit they want right away without having to save up for an annual upfront payment. GraKarya allows developers and property owners to more easily sell their products and earn cash flow regularly.

"Gradana enters the segment that prepares consumers so that they can enter as mortgage customers at banks. After all, we also use escrow account from the bank to accommodate the funds. Therefore we and the bank do not compete with each other."

Easy process

Because the function of technology is to simplify the process, Gradana prepares products that can be tailored to the needs. For example, GraDP, which makes it easier for borrowers to pay a down payment on a monthly basis before proceeding to apply for a mortgage to the bank. The tenor ranges from 24-36 months with a flat coupon starting from 11% per year.

According to Angela, this scheme is adopted similar to the sharia concept because the borrower has been notified of the installments that must be paid from start to finish until maturity. The process is more transparent and borrowers don't have to worry about floating interest after a certain period of time.

"We haven't Certified for sharia, but we try to apply what is good for consumers. They want to know from the start the amount to be paid."

For lenders, it is also easy for them to get alternative property investments through the platform p2p loans. So far, investing in property requires large funds to buy a unit of property, other than that it is very speculative.

Are there buyers when they want to sell or rent their property, not to mention the question of whether the returns that can be obtained are as expected or not. Plus the condition of the property market at that time was it good or not. Speculation like this is what finally makes some people choose to withdraw.

"We want solve issues for people who want to start investing in property and helping people who are used to investing there."

Keep safety first

Gradana strengthens the security side so that the entire ecosystem feels safe when accessing the platform. These include requiring collateral in the form of property, especially for GraDP products when taking loans. This is different from service p2p loans others in Indonesia.

A letter of guarantee from the developer partner is also required in the event of a default as a form of protection. Process credit scoring when the application is made carefully and refers to several steps commonly used in banks, including BI Checking (now called OJK Checking).

"Gradana is preparing a partnership with insurance to strengthen the security of the lenders and borrowers. From a business point of view, we have registered with the Ministry of Communication and Information, a permit from the OJK, and the blessing of BI."