As of January 2020, there were more than 2000 illegal P2P lending in Indonesia, but more and more people also understood and began to use online loan applications as an alternative to borrowing money than at the bank so this should be watched out for.
Therefore we need to be more careful in choosing applications / online loan companies, here are the things that need to be known to recognize illegal fintech:
- Fintech illegal is usually not registered and not licensed in the FSA
- Do not have a clear office address and telephone number
- In Indonesia, the interest rate requirement may not exceed 0.8% per day as determined by the OJK so if more than that it will be considered illegal
- Fintech illegally retrieves and uses all customer data through applications that are installed without permission from the customer, so this must be considered when agreeing to the terms and conditions apply when wanting to use an online loan application
- The billing period can only be done a maximum of 90 days from the deadline. The total cost must not exceed 100% of the principal value
- Disbursement of money that is too fast for example only within 15 minutes to 1 hour after applying for a loan, even though there are processes that usually require a minimum of 1 x 24 hours
