Get to know online loan and how to borrow them

Posted on – Get to know illegal online loans and how to borrow them

Illegal online loans are still emerging, so it is not uncommon for people to become victims. The most recent case that occurred in early June, was a kindergarten teacher in Malang who was in debt up to hundreds of millions of rupiah, and was fired from his job because he was often billed by a group of debt collectors.

Online loans are financing services provided by certain agencies online/online. However, not all online loans are registered and have permission from the Financial Services Authority (OJK) so they are categorized as illegal.

Illegal online loans are also often not legally incorporated. This makes the work process does not follow the procedures that have been made by the OJK.

Based on an OCBC NISP press release received by, Monday (14/6/2021), illegal online loans are dangerous because the financing you get is not based on applicable regulations. “There is a huge potential for fraud and it could land you in huge debt. So, instead of getting fresh financial assistance, you will actually sink deeper into the abyss of poverty,” wrote OCBC NISP.

The characteristics of illegal online loans include :

1. Not registered and does not have an official license from the Financial Services Authority (OJK), so it does not have legality.

2. Illegal loan applications usually ask for access to borrower data, even those that are not related to the lending process.

3. Setting interest, fines, and high fees without the explanation stated in the agreement. 4. Collecting installments without ethics. Generally delivered with threats and harsh sentences. The collector or debt collector also does not have a collection certificate.

5. The location of the office is not clear. Generally, illegal online loan offices are located overseas, so if a case occurs, the authorities will find it difficult to track it down

6. Illegal online loans do not have a complaint service, so the borrower will not be able to submit a complaint if a problem occurs.

here are several ways that can be done to avoid illegal online loans, including:

1. The easiest way is to check the loan from the official website of the Financial Services Authority (OJK).
2. Check the legality, then also check the digital track record. Is there a problem or not.
3. Avoid loans with large fees.
4. Check the terms and conditions set by the loan provider
5. Download loan applications from official application service providers such as the Google Play Store and Apple Store.
6. Be aware of misuse of your personal data
7. Avoid advertisements on the internet that look flashy. Because, generally, illegal loans will create very attractive solicitation advertisements for potential victims.
This is what the Directorate General of Taxes said. Online loans are indeed tempting in terms of the loan amount and convenience. However, you should also know that illegal online loans have impacts and consequences that must be borne by the debtor:
1. Stolen data. Illegal online loan applications will usually ask for personal data and access to every feature on your device. Examples, pictures in the gallery, and so on.
2. High interest Illegal online loans generally offer low interest in the beginning to attract victims. 
3. Debt collectors If you don't pay your installments on time or are even unable to pay your installments, there will be debt collectors who will do everything to keep the installments running. 
4. Family and Friends are the targets of collection As previously explained, illegal online loan applications can read your data, including contacts stored on the device. Illegal online loans will usually also contact your family, relatives, or friends.
Learning from the case of the kindergarten teacher in Malang, here are some tips you can do to make an online loan, including:
1. Check the legality Always check the legality of the loan application. OJK always provides a safe loan list as a reference. So, you don't have to worry about borrowing money.
2. Borrow according to ability Do not borrow excessively. First, measure the ability to pay installments before borrowing funds, how much is needed, only then register with a secured loan.
3. Pay on time If you have borrowed, then pay your installments on time. You have to take into account expenses every month so that debt installments continue to run smoothly.
4. Look for alternatives If you are hesitant to use an online loan, you can use financing services from other entities such as bank OCBC NISP to meet your needs. Bank services are clearly safer, verified by the OJK, and have competitive interest rates.

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