What is TKB90 in P2P Lending?

TKB90 is a term that we often find on all P2P Lending technology financial platforms in Indonesia. But what is TKB90 anyway? What is its function and how to calculate TKB90? Check out this article for more details.

What is TKB90?

TKB90 stands for Successful Payment Rate within 90 days. This has been regulated in OJK Regulation Number 10/POJK.05/2022 Article 101 Concerning Transparency of Information Technology-Based Co-Funding Providers in Paragraph 4 which requires the publication of Success Rates of Payment. Referring to sikapiuangmu.ojk.go.id it is stated that the quality of funding is divided into five categories, namely:

1. Current if there is no delay in payment of principal and/or economic benefits of Funding;

2. With special attention if there is a delay in payment of principal and/or economic benefits of Funding that has exceeded its maturity date by up to 30 calendar days;

3. Substandard if there is a delay in payment of principal and/or economic benefits of Funding that has exceeded 30 calendar days up to 60 calendar days;

4. Doubtful if there is a delay in payment of principal and/or economic benefits of Funding that has exceeded 60 calendar days up to 90 calendar days; And

5. Loss if there is a delay in payment of principal and/or economic benefits of Funding that has exceeded 90 calendar days.

Basically, TKB90 shows the quality of refunds and benefits according to the agreement. However, the question arises, if we exceed TKB90, will our funds be lost? The answer is the possibility that the funding will only be met after more than 90 days from the due date, but that does not mean that the funding will not be returned at all. Depends on the handling of each organizer.

Formula and how to calculate TKB90

TKB90 = 100% - TWP90
TWP90 is the level of default on funding above 90 days from the due date. To calculate TWP90 use the following formula
TWP90= Total Outstanding over 90 Days: Total Outstanding x 100%

What is the function of TKB90 for P2P Operators?

For P2P lending platforms, TKB90 is an important indicator for measuring portfolio credit quality. The higher the percentage of TKB90 owned by the P2P platform, the better the P2P platform. Therefore, P2P lending platforms usually have strict policies in selecting Recipients of Funds and Handling the Funding process until the funds return to Investors. This policy can be in the form of credit write-off or taking legal action against the Recipient of Funds.

What is the function of TKB90 for Fund Recipients?

With TKB90, Fund Recipients have the opportunity to improve their business performance. The P2P platform can become a 'stage' for SMEs that they are able to fulfill their financial obligations in a timely manner and follow the policies and procedures set by the P2P Lending platform. So that if SMEs apply for funding at a later date, investors will not hesitate to fund the project again.

What is the function of TKB90 for Investors?

On the investor side, knowing the number of TKB90 owned by a P2P lending platform can help them choose a safer platform and reduce their investment risk. Investors can also obtain more detailed information about TKB90 in the P2P lending platform's financial reports, so they can carry out a better investment risk analysis.

However, as an investor, it should be kept in mind that TKB90 is not the only factor to consider when choosing a P2P lending platform to invest in. There are many other factors such as the platform's track record, risk management system, and refund policy that must also be considered before making an investment decision.

In conclusion, TKB90 is an important term in the P2P lending industry in Indonesia. This is an important indicator for P2P lending platforms to measure the quality of providers, and for investors to estimate the risk of their investments. However, as an investor, you must consider various other factors before choosing a P2P lending platform to invest in.