amalan announces new loan consolidation program to accelerate the financial recovery of distressed borrowers

[FOR IMMEDIATE RELEASE]

amalan announces new loan consolidation program to accelerate the financial recovery of distressed borrowers

Jakarta, Indonesia – 16 September 2024 – PT amalan International Indonesia is excited to announce that it has secured a $10 million commitment from an international lending partner to refinance overdue loans of amalan’s debt relief clients. This program is first of its kind in Indonesia and will help distressed borrowers to dramatically accelerate their path to financial recovery. According to credit bureau data, more than 65 million consumer loans in Indonesia are currently more than 90 days overdue. These borrowers - and their lenders - need innovative solutions that provide much-needed relief for individuals struggling with short tenor loans with high-interest.

The new consolidation loan is part of amalan's Kredit Bijak Karyawan product family that was launched in November 2023 targeting employees at different levels of financial distress. This latest offering is the first OJK regulated product in Indonesia that allows employees that are already more than 180 days overdue on loan payments to use amalan’s debt relief service settle their loans with funds from this new, unsecured loan. This product is specifically designed to offer a fresh start to the millions of Indonesian employees with ballooning debt that they can no longer afford.

In a typical case, debt relief clients should expect a 70-80% reduction of their monthly installments. This reduction is achieved by lenders forgiving accrued interest and penalties on the overdue loans and then replacing expensive ultra-short-term loans with affordable 12-24 month loans. Refinancing IDR 100 million of outstanding loans will come with installments of approximately IDR 3 million per month over 24 months.

To qualify for this loan, applicants must meet the following key criteria:

1. Client of amalan's debt relief program, with at least one loan already settled and a track record of saving up funds
2. Current loan balance of IDR 20-200 million with OJK regulated lenders 
3. After refinancing, the monthly loan installment must not exceed 60% of the net monthly salary
4. Must be a distressed borrower and show that current take home pay is insufficient to pay for current loan commitments
5. Qualified employment 
6. Domicile in Jabodetabek, Surabaya, Bandung, Bali

For a full list of eligibility requirements, please click here.

Eligible amalan clients can apply for the unsecured consolidation loan after they have already settled their first loan using their own funds. The application process is 100% digital and will take less than 3 days after a complete application has been submitted. amalan’s team of mediators will handle the settlement process with the old lenders. First disbursements are scheduled for October.

To join amalan’s debt relief program, borrowers must show that their income is insufficient to pay their current loan installments and must be committed to pay off the outstanding balances over time with the help of amalan’s mediation team. Interested borrowers can click here to get a free consultation. First disbursements will start in October 2024.

Further loan consolidation options are available through amalan for borrowers that can provide either property or cars as collateral. These loans are available for employees, self-employed professionals and business owners. 

amalan's CEO, Arne Hartmann, commented, "The launch of our unsecured consolidation loan is a significant step towards supporting the financial recovery of Indonesia's emerging middle class. By providing an affordable and accessible solution, we offer millions of borrowers a path to  reduce their debt burden and improve their financial health within months instead of years. This loan will reward our clients who have already shown commitment to settling their overdue loans, helping them get out of debt much faster and easier than ever before, all while paying much less in interest and penalties."

 

About PT amalan International Indonesia

amalan is a social enterprise that manages more than US$ 100 million distressed consumer loans on behalf of its clients with a goal to guide them to financial health. As the only loan restructuring and refinancing company in Indonesia that has successfully passed the regulatory process, amalan provides innovative solutions that empower borrowers to regain control of their finances. Through its programs, amalan systematically reduces overwhelming loan payments and offers the opportunity of a fresh financial start to millions of Indonesians.

For more information on the unsecured consolidation loan or to apply, please visit https://lp.amalan.com/id-program-dana-talangan/.

 

Contact Information:

Arne Hartmann  
CEO, PT amalan International Indonesia  
Email: pr@amalan.com