Lilik’s Story

Lilik is a 33 year old woman from rural East Java who works in a fish can factory to support her family.

She receives her income weekly in cash, which she finds more convenient than a monthly payment because it allows her to repay borrowed money faster once she gets her salary at the end of the week. For urgent needs like her children's school fees, she borrows from family or close friends and repays them with her weekly salary. She also lends money to family members in need. She has never borrowed from a bank due to concerns about meeting strict repayment deadlines, preferring the flexibility of borrowing from family.

She has a smartphone, but she only uses WhatsApp and Facebook, both of which were set up by her husband. She has never installed an application before. When asked to input her monthly income in a digital lending application, she was worried because the minimum required income is IDR 3 million, while her income is uncertain and often less than IDR 1 million due to fluctuating fish supply. One of the difficulties in passing the credit score is the lack of information required by the current credit scoring analysis, compared to banked individuals.

"What if I don't earn 3 mio a month? It's hard to count because it depends on the fish supply. Some months, I don't even get 1 mio."- Lilik

While they have assets, their assets like a motorcycle and livestock to serve as collateral, these often does not comply to the bank collateral standard.