Tadpole Payment Scheme Gains Traction in Indonesian Fintech Lending

Growing Popularity Among Micro Merchants

The tadpole payment scheme in Indonesia's fintech peer-to-peer (P2P) lending industry is increasingly popular, particularly among micro and ultra-micro merchants. According to Entjik Djafar, Chairman of the Indonesian Fintech Lending Association (AFPI), this scheme offers significant benefits to borrowers.

Characteristics and Benefits

The tadpole scheme features larger initial installments that gradually decrease over time. This structure is particularly appealing to small business owners who require short-term financing with flexible repayment terms. AFPI's Entjik Djafar noted that this payment scheme has become a preferred choice among borrowers due to its adaptability to their financial needs.

Industry Relaxation Mechanism

The adoption of the tadpole payment scheme is seen as a relaxation mechanism for the financial industry amid current economic challenges. By offering more flexible repayment options, fintech lending platforms can better support borrowers while managing their own risk exposure. This development highlights the evolving nature of fintech solutions in Indonesia's financial sector.