Amartha

The rate of financial inclusion in Indonesia is 48.9% and only 36.6% for people from lower income households. In 2017, only 18.4% of people borrowed money from a formal financial institution and 21.5% saved at a financial institution. It is also estimated that around 98% of microenterprises, usually run by women, do not have access to formal financial services.

The platform connects aspiring female micro-entrepreneurs who need affordable capital with individual investors who are looking for attractive investment alternatives.

Amartha delivers its small loans through a communal, trustbank system that offers lower interest rates and faster approval than other financing alternatives.

Amartha not only provides women entrepreneurs with access to affordable finance, but also offers them financial literacy, health and sanitation trainings. Amartha educates their borrowers about responsible borrowing and basic financial management as well as hygiene sanitation practices and how to look after their and their families’ health. The benefits of such trainings improve well-being and the quality of life of the borrowers, their families and communities.

Field officers service the groups of 15-25 borrowers and meet with them on weekly basis to disburse loans, collect repayments and deliver trainings.

Amartha’s web and application-based platform is connected with banking infrastructure to enable lenders invest easily and seamlessly. A special algorithm enables Amartha to determine risk and credit-worthiness of borrowers even without prior credit history or digital footprint.