Loan Referral Agreement Template for Indonesia

A Loan Referral Agreement is a specialized contract that governs the relationship between financial institutions and third parties who refer potential borrowers in Indonesia's regulated financial sector. You need this document to establish clear legal boundaries, compensation terms, and compliance requirements when working with referral partners under Indonesia's comprehensive financial services framework.

When do you need this document?

You require a Loan Referral Agreement when your bank or financial institution wants to partner with independent agents, fintech platforms, or other intermediaries to generate loan applications. This document becomes essential if you're a traditional bank expanding into digital channels through fintech partnerships, or if you're operating a peer-to-peer lending platform that relies on third-party referrers. The agreement is also necessary when insurance companies or microfinance institutions establish referral networks, or when credit brokers formalize their relationships with multiple lending partners. Given Indonesia's strict regulatory environment, you cannot operate referral arrangements without proper documentation that demonstrates compliance with OJK requirements.

Key legal considerations

Your Loan Referral Agreement must address several critical legal elements to ensure enforceability and regulatory compliance. The compensation structure requires careful definition to avoid conflicts with banking regulations and usury laws, while lead qualification criteria must align with responsible lending practices. Confidentiality provisions are essential given the sensitive nature of financial data, and you must include specific clauses covering data protection obligations under Indonesian privacy laws. The agreement should clearly define the scope of referral services, prohibited practices, and termination procedures. You also need provisions addressing liability allocation, indemnification terms, and dispute resolution mechanisms that comply with Indonesian commercial law.

Legal requirements in Indonesia

Under Indonesian law, your Loan Referral Agreement must comply with multiple regulatory frameworks administered by the Financial Services Authority (OJK). Law No. 21 of 2011 on Financial Services Authority establishes the supervisory framework that governs all referral activities in the financial sector. You must ensure your agreement aligns with Law No. 8 of 1999 on Consumer Protection, which mandates transparency in financial services and prohibits unfair business practices. For digital lending platforms, OJK Regulation No. 77/POJK.01/2016 specifically addresses peer-to-peer lending and related referral activities, requiring proper registration and compliance procedures. Banking institutions must additionally comply with Law No. 7 of 1992 on Banking, while electronic transactions require adherence to Law No. 11 of 2008 on Electronic Information and Transactions. Your agreement must include specific clauses addressing these regulatory requirements, including proper disclosure obligations, data handling procedures, and reporting requirements to relevant authorities.