The rapid development of technology provides convenience for people who need loans. As we know, Financial Technology (Fintech) or commonly known as online loans has been “booming” for the past few years in Indonesia. The presence of this online loan, certainly makes it easier for people who need emergency funds for various needs. Call it the daily needs, business capital, health costs, education, and much more. Not everyone is able to manage their income or salary so well that they cannot meet their needs.
To date, more than 150 online loans have been registered and have licenses from the Financial Services Authority (OJK). Online loans that are officially registered, monitored and licensed by OJK certainly do not need to worry. However, at this time there have been many illegal online loans circulating which are very unsettling to the public because they are considered to be “online moneylenders”. Instead of helping the public by providing emergency loans, these illegal online loans instead burden people who are entangled with choking interest. Many illegal online loan cases have ended up unlucky. Therefore, this time Good Lenders Credit will return to the Fintech Literacy article with the title “How to Distinguish Legal & Illegal Fintech?” Come on, read this article until it runs out.
The Characteristics of Illegal Online Loans:
1. Unregistered, Supervised & OJK Licensed
The simplest way you can do to check whether your online loan is legal / illegal is to check the list of online loans that are registered, monitored and licensed by the OJK. OJK will update this list regularly, therefore, you can check the list here!
2. Invalid Company Address & Identity
The second way you can detect illegal online loans is to check whether the address & identity of the online loan is valid or not. Legal online loans registered with OJK certainly have a valid office address and are very easy to find on Google’s search engine. You can also find the company’s identity easily. However, illegal online loans will not do that, Good Lenders Credit. They will use a fake address or even use another online loan address to make it look “real”. They will also not include telephone numbers for complaint services.
3. Delay Interest & Penalty Does Not Make Sense
The third point you should understand is that illegal online loans offer unreasonable interest & late fees. Hmmm, illegal online loans are synonymous with the term “online moneylender”, Good Lenders Credit. They also do not limit the nominal interest and penalties that will be charged to you. Doesn’t it help, it actually suffocates it? Things like this, which makes people afraid of online loans. In fact, official and legal online loans will certainly limit the interest and late fees, the interest offered is not exorbitant.
4. Loan Terms Too Easy
Legal and legal online loans will be selective enough to determine which clients can be given loans. But in contrast, illegal online loans will provide very easy terms and conditions and can even disburse funds in a very short time.
5. Information Not Transparent
The next way you can identify illegal online loans is to look at the information provided by the loan. Do they provide transparent information such as interest rates, fees to be paid, to late fees? Legal online loans will certainly provide that information transparently through applications, websites, even to the social media they have.
6. Billing Methods That Do Not Fit the Code of Ethics
Various cases of illegal online loans circulating in Indonesia are often related to ways to collect online loans that are not in accordance with the code of ethics. Threats, defamation, are often the most common problems. This certainly will not be done by online loans that are legal and officially registered with OJK. So, always be aware!
So here are some ways you can recognize illegal online loans. Now, to distinguish illegal and legal online loans, the following are the characteristics of online loans that are legally and officially registered with the OJK:
- Registered, supervised and licensed by the Financial Services Authority (OJK)
- Have a valid and clear company address
- Company identity is easy to find
- There is a complaint service number & customer service that can help
- Information related to transparent loans
- There is a maximum percentage of interest and late fees
- Strict customer selection
- Loan collection
- Social media is clear, and verified
Already understand, Good Lenders Credit? How easy can you do to recognize illegal online loans? For those of you who are still confused about finding the right legal online loan for your needs, you can choose Good Lenders Credit online loans that have been registered and supervised by the OJK. Good Lenders Credit offers loans of up to 8 million dollars that can be repaid up to 6 months with an interest of 0.1% per day.