Kredivo, a digital credit card startup, released a cash loan product to answer the high demand of loans at the end of the year. Kredivo targets in the q4 payment distribution to grow 50% bigger than the same period the previous year, without mentioning the exact number.

Indina Andamari, Kredivo‘s Head of Marketing, said this product has no special requirements. All users with an active accounts can use the product. They can also withdraw the limit to cash for various payment or shopping in more than 200 merchants partnered with Kredivo.

“We use big data and machine learning technology to value someone’s credit worth in real time for risk mitigation. In addition, we also have security system to evaluate users transaction, and effective billing process,” she explained to DailySocial.

Kredivo’s cash loan is available in two types, Mini and Jumbo. Mini allows users to borrow up to Rp3 million with 30 days tenor, and Jumbo has Rp30 million limit with 6 month tenor.

She explained, after the user claims a number and its tenor, cash will be disbursed instantly through the bank account within 10 minutes without collateral. It is said to be the first business model in Indonesia.

The interest rate is claimed to be the lowest among the others in market. Kredivo charges up to 2.95% per month, lower than competitors with 1% interest in average per day.

“Kredivo’s vision is to provide credit access to Indonesian millennials at the lowest possible cost. We are pleased to be capable to provide this product for our users at low cost, right when the end of the year’s demand increasing.”

Kredivo is currently available for users in Jabodetabek, Bandung, Surabaya, Medan, Palembang, Semarang, and Denpasar. Kredivo has almost one million active users.

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Original article is in Indonesian, translated by Kristin Siagian