Online loans refer to the types of loans that can be disbursed faster than ordinary loans. Usually this kind of loan you can access through the application on the device.
Here are some characteristics of online loans in general.
- These loan products are generally in the form of applications.
- Lenders come from individuals, investors, or certain funding channeling institutions. So, not from the bank.
- Loan limits are usually not large, ranging from hundreds of thousands to eight million rupiah.
- Because there is no guarantee, the loan interest is usually much greater.
Today, online loans are still available only in big cities. For example, Jabodetabek, areas on Java, Medan, Makassar, and several other big cities.
Since it began to appear around 2015 ago, online loans are still a matter of controversy. One reason is that the loan interest is quite large.
For information only, the average online loan application applies 1% interest one day. In fact, the interest on loans without collateral from banks alone is usually imposed only around 1% to 2% per month.
However, on its journey, the OJK (Financial Services Authority) finally allowed several online loans to operate in Indonesia. So, if you still want to try kekeuh online loans, now there is a legal framework that would protect the borrower.
General Terms and Submission of Online Loans
In general, the loan application is quite easy. Here are some criteria for prospective borrowers that are likely to be accepted by an online loan company.
- Indonesian citizens
- Productive age, ie a minimum of 18 years and a maximum of 60 years.
Meanwhile, for document requirements only ask for a KTP. However, there are also those that require a tax ID, salary slip, and a photo of a savings account. Then, sometimes some online loans ask for access to internet banking accounts and borrowers’ social media.
The procedure for submitting loans online, among others:
- Search for the application Google Playstore or AppStore.
- Download the application on your mobile.
- Select the Registration menu or Register.
- Enter personal data and follow the instructions until registration is complete.
- Wait for the verification process.
- If approved, then you can start borrowing.
Usually the verification process takes a day to three days, depending on the loan provider. Likewise, the process of disbursing funds will generally be sent to your account in just 24 to 48 hours.
Tips for Choosing an Online Loan
The rise of online loan applications that have now been circulating can be quite confusing. So far, applications that have appeared on the Google Playstore or Appstore have reached hundreds. However, be careful! Consider the following tips before choosing.
1. Make sure it is registered with OJK
There are hundreds of online loan applications in Indonesia, but so far only around 99 applications have been registered with OJK. Please check the OJK website to find out the list.
If an application has been registered with the OJK, it means that the OJK oversees the regulation of the loan company. Then, you as a borrower also get protection, especially in terms of using personal data.
2. Transparency of costs and learn first
Choose an online loan that presents cost transparency. See the information on the site or the application itself. These costs include interest, provision fees (initial deductions), late fees, and service fees.
By paying attention to these costs, you will not be so surprised when you see the total payment at the end of the loan period. Because, you have understood it from the beginning.
3. Pay attention to the requirements requested
In general, the conditions requested by the loan provider are enough KTP or sometimes NPWP. However, you still need to be careful of other conditions. For example, there are loans that are quite ‘naughty’ that ask for your credit card data, access to telephone contacts, and so on.
Especially for credit card data, never give it to any loan application party.
4. Loan flexibility
If it’s possible, choose an online loan application that provides loan flexibility. Starting from the number of loans, tenor (payment term), and interest. Here are some things you can consider.
- Flexible loan amount, can be in accordance with the funds you need.
- Can choose the payment period as desired. Or, there is a choice of a certain payment period to be adjusted to the interest. So, the faster the payment, the lighter the interest will be.
- No penalty fees when you pay off your loan faster.
Advantages and Disadvantages of Borrowing on an Online Loan Application
Let’s examine what are the advantages and disadvantages of utilizing online loans.
Benefits of borrowing on an online loan application
- The submission process is very easy
In contrast to banks which require more complicated documents, online loan applications only need a KTP. In fact, often online loans do not conduct surveys to verify your data.
- Disbursement speed
Submitting a loan at a bank will usually take the verification process until a minimum of two weeks is disbursed. However, online loan providers dare to disburse funds in just 24 hours.
In fact, for those of you who have borrowed several times, the loan provider will disburse funds in just one hour.
- No guarantee
There are no assets that you have to guarantee to get a loan through the application.
Lack of online loans
- Interest is very high
The interest applied to most online loans is quite high. There is one percent one day. This is actually understandable because the risk of bad loans is also high because there is no guarantee for the company.
- Other costs are quite large
Not only interest, there are also other costs that are quite large. For example, the cost of provision which sometimes reaches hundreds of thousands and the cost of delay is quite suffocating.
- Loan limits are quite small
The average online loan that is now provides a loan limit of around hundreds of thousands to Rp. 8 million. While loans without collateral in banks can reach hundreds of millions or five times your salary.
- Restricted area
For now, those of you who can borrow through online loan applications are only those from big cities.
- Guaranteed privacy is still questionable
This point is still a matter of controversy. Despite being under the supervision of the FSA, there is still a fraudulent online loan providers requesting access to customers’ personal data. For example, the application requests access to telephone contacts and social media. So that it can terrorize the friends or relatives of the Borrower if it is too late to make payments.
Although it is still a controversy, it is undeniable that this online loan application is enough to help people who have difficulty getting loans from banks. Because, the loan process at the bank itself does tend to be much tighter.
In addition, flexible loan limits from online loans are a special attraction for some people. Sometimes you are pressed for funds, but are reluctant to borrow from friends, so online loan applications are a short alternative.
It’s just that, with a high enough interest, it’s a good idea to use the loan application when it’s really pushed. Not to buy something that is not needed which results in you getting into debt. Plus, make sure you are also able to pay it off on time!