Bapak Rony owns a small shop next to his house in Cibubur, Indonesia. Cibubur itself is a suburban area around Jakarta that takes about 30-45 minutes [driving] during normal hours. His small shop sells basic grocery items such as rice, gas, cooking oil, eggs, noodles, snacks, drinks, and toiletries. And, of course – last but not least – he is selling airtime prepaid minutes.
The reason Bapak Rony wanted to try Ruma’s new product, Loket Ruma, is because he wanted to generate more income for his family. By becoming a Loket Ruma agent, he will be able to provide his customers with a bill payment service that is a new business around his area. Customers and his neighbors will be able to pay their personal or household bills in his small shop. He will be able to create the payment transaction by using an electronic data capture (EDC) machine. This machine will connect its server and pay the customer's bill automatically, so they no longer need to go to the bank and waste their time.
This loan from Kiva will be given to him to pay the guarantee deposit money in order to own this EDC machine. He hopes by having this new service product in his shop, Bapak Rony will be able to expand his business. He is expecting new customers to come to him to pay their electricity bill, water bill and motorcycle installments.
More information about this loan
Working capital loans enable credit-worthy borrowers to reach their full sales potential. Every agent maintains a balance of electronic credit with Ruma to process transactions. But if this balance is zero and no Ruma field officers are available to replenish it, an agent may miss out on sales. Working capital loans solve this problem by serving as a line of credit that agents can repay as needed during the loan term, ensuring that they don't lose potential income. PT Ruma will progressively disburse the amount posted on Kiva based on the agent's working capital needs, ensuring that no potential income is lost. By funding this loan, you are empowering urban and rural entrepreneurs.
About PT Ruma
PT Ruma's core business is not microfinance. Accordingly, there is some additional risk for lenders as this Field Partner expands its business model to include lending. Because PT Ruma’s business model differs from standard microfinance models, it is not assigned a risk rating on Kiva. Key risks and further information about making loans to borrowers through PT Ruma can be found on the organization’s partner page.