Recognize the Characteristics of Illegal Online Loans, Prevent Losses

The phenomenon of illegal online lending is one of the impacts of technological developments in the financial sector. This includes the side effects of greedy individuals as well as the negligence of the victims, because there are many loopholes for fraudsters to attract their victims.

The development of financial technology completely makes people’s lives and economy improve. People who used to have to meet face to face and bring cash in transactions are now changing to be more efficient.

Very positive changes, including the online loan thing. There are many advantages, especially for individuals and small and medium business owners to build a business faster with the existence of an online lending system.

Because it plays a big role both in the world of electronic commerce to help meet the needs of the wider community, loans deserve to be maintained. But on the internet, where many online loan scammers are illegal, all parties should be careful.

Especially the borrower, you must understand how to choose a legal body or company to make a loan. In Indonesia itself, the Financial Services Authority (OJK) is an official institution that regulates and supervises its activities.

Beware of Data Theft By Pinjol Abal-abal

Because loan transactions are carried out virtually, the OJK makes a number of rules for both the profile of fund providers and borrowers. Because the purpose or reason many people do loans is for the speed, it is not uncommon for borrowers to be less careful.

Data theft is a phenomenon that afflicts many internet users today. And it is quite possible that it happens when you borrow in an illegal online loan. Because generally the borrower will send personal data to the borrower, it could be that your data is not protected.

That is why P2P Lending transactions must rely on the advice of the OJK. This institution has a list of who are the official parties as borrowers to ensure the security of your data later.

When borrowing with lending from the OJK list, you will be met by lenders who have an official loan agreement. This means that all things will have a legal basis so that your funding needs can be carried out properly.

The existence of Fintech lending is indeed a new hope in the midst of the needs of many people in today’s era. Both for cash needs quickly and efficiently, more and more business owners get the opportunity to develop a business.

Detection of Illegal Online Loans, These Are The Characteristics

The most contrasting difference between official and non-official loans lies with the party that oversees them. OJK will restrict fintech lending providers by requiring various things before being given a permit.

Meanwhile, illegal parties will transact according to their own rules and no one regulates or supervises various harmful practices there. Illegal borrowers will not report their implementation activities to the OJK so that they are free to do anything.

In this case it is the borrower who will be harmed a lot. Usually, illegal online loans will make the loan system as he wants, such as loan interest is too high and the rules or services for clients are unclear and do not go well.

Legal loans by the OJK have been determined by the amount of fines or percentages of interest when various things occur during the implementation. All lenders must also first be experienced in Fintech so that they will not commit violence on clients.

Unlike the fake loans, they will not follow the OJK rules at all so that they carry out all transactions according to their rules. There are many cases where the borrower will be treated harshly when late in paying, even the amount of the fine is also unreasonable.

Even borrowers will not be complained about when they feel that there are many implementation errors. Illegal online loans also rarely have official buildings that can be physically visited. In addition, at the beginning usually they will make the lending process fast.

So the most important thing is indeed from the borrower’s side. This means that even though you need fast funds, never neglect to check whether the loan provider is legal or not. Because if there is an incident, it is difficult for the victim to report, but it will be more at a loss.

You will also not find them in the list of Fintech P2P Lending organizers of the OJK or participate in the Indonesian Joint Funding Fintech Association (AFPI). So make sure you check the list of licensed Fintech organizers at the OJK before borrowing.

Because the development in Fintech Lending is very positive, including great opportunities for Indonesia and the wider community in the future, people must be more observant in choosing. Because there will always be criminals of illegal online loans on the internet waiting for victims.

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