Online Pawn Service Pinjam to Launch Sharia Business

Pinjam, a startup in the online pawn industry, is soon to launch sharia business for its business diversification. It is to be available in market in Q3 of 2018.

"So, this year's planning is to launch sharia-based product. It still needs to find a clear DNA product. Later, when it has been launched, it will be faster to apply [compared to conventional sharia business]," said Teguh B Ariwibowo, Pinjam's CEO and Founder, as quoted by Digination.

For this new business development, the team has made a sharia committee to supervise and created opportunities for partnership with related parties, such as Maal Wat Tamwil Agency (BMT). The CEO also claimed partnership with an app that's having nearly two million agents.

It must be done to make this fintech service comply with sharia principal and cover customer's needs.

"We already have had sharia team to supervise, also partners with an app with two million agents. Furthermore, we talk to the community along with BMT."

Pinjam currently has two main products called "gadai online" (online pawn) and "pinjaman mikro" (microloans). Gadai online's target is individual, they can apply for loan starting from Rp2 million to Rp5 million. While microloans are specific for entrepreneurs with a maximum loan of Rp100 million.

Recently, p2p lending Investree has also launched its sharia business. The company's research shows that this business line has disbursed Rp2,7 billion from 313 lenders for 1,340 borrowers.

Investree has become the first fintech company to receive a Recommendation Letter of Sharia Experts Team from National Sharia Council - Majelis Ulama Indonesia (DSN-MUI). It means Investree becomes a party in designing, providing inputs, and supervising sharia-based products as part of "Fatwa Fintech Syariah" in the near future.

– Original article is in Indonesian, translated by Kristin Siagian