Online loans: Easy and convenient, but too expensive – Reviews
Boy Hazuki Rizal (The Jakarta Post)
Mon 29 January 2018
Online borrowing is gaining popularity in Indonesia as it is now easy for people to use the internet to access funds. There are 28 financial technology (fintech) startups that are already registered with the Financial Services Authority (OJK). These fintech startups offer financing and lending money through their websites or apps, which can be freely downloaded.
Online borrowing is done through peer-to-peer lending (P2PL), in which borrowers are matched with lenders. People who want to borrow money can go through this channel after submitting an application. Some fintech startups even require you to log into their social media accounts.
Then the fintech will assess your credit rating, like a bank does, and let you know whether or not you qualify for credit. They will also assess the level of risk of your loan. The higher the risk, the more interest you have to pay, while those deemed lower risk will pay less interest.
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Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official position of The Jakarta Post.
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