Secured Loan Solutions

 Secured Loan Solutions

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Director of Policy and Investigation Support of the Financial Services Authority (OJK), Tongam Lumban Tobing, revealed a lot fintech illegal online loans operating in Indonesia but the server is abroad. This makes it difficult for the authorities to take action.

The Financial Services Authority (OJK) Investment Alert Task Force has closed 1,773 fintech peer to peer lending or illegal online loans. The closure was carried out from 2018 to October 2019. Meanwhile, only 127 applications were officially registered at the OJK.

Of the 1,773 illegal fintechs, 22 percent are based in Indonesia. Meanwhile, another 36 percent have servers abroad and the remaining 42 percent have unknown server locations.

The countries where illegal fintech servers are located are the United States as much as 15 percent, Singapore 8 percent, China 6 percent, Malaysia 2 percent, Hong Kong 1 percent, Russia 1 percent, and others 3 percent.


Characteristics of Illegal Online Loans

In order to avoid illegal loans, OCBC NISP friends can learn the 6 characteristics described below:

  1. It is not registered and does not have an official permit from the Financial Services Authority (OJK), so it does not have valid legality.
  2. Illegal loan applications usually ask for access to borrower data, even those that are not related to the lending process.
  3. Set high interest, fines, and fees without any explanation stated in the agreement.
  4. Billing installments without ethics. Usually delivered with threats and harsh sentences. The collector or debt collector also does not have a billing certificate.
  5. Office location is not clear. Generally, illegal loan offices are located abroad, so if a case occurs, it will be difficult for the authorities to trace it.
  6. Illegal loans do not have a complaint service, so the borrower will not be able to submit a complaint if a problem occurs.


Market Aplication

How to Avoid Illegal Online Loans

Now, by knowing the characteristics described above, OCBC NISP friends also need to understand how to avoid illegal loans. What are they? Here's the explanation:

  1. The easiest way is to check a loan from the official website of the Financial Services Authority (OJK). OCBC NISP friends can open the page
  2. Check the legality, then also check the digital track record. Is there a problem or not.
  3. Avoid loans with large fees.
  4. Double-check the terms and conditions set by the lender
  5. Download loan applications from official application service providers such as the Google Play Store and Apple Store.
  6. Be alert to misuse of your personal data
  7. Avoid advertisements on the internet that look conspicuous. This is because, in general, illegal loans will create very attractive solicitation advertisements for potential victims.

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