Among the many online loans, you must be observant looking for legal and illegal online loans. Do not let the wrong choice because the risk can be prolonged. Not only for finance, but also your social life.
So, clearly understand the characteristics of legal and illegal online loan providers and choose carefully. If you don’t know what are the differences between the two, read here so you don’t get the wrong place when applying for a loan!
Online Legal Loans
A legal online loan will give you more convenience and a certain sense of calm when borrowing money. With strict regulations and overseen by the government, you can feel safe borrowing any money.
Now, make sure the company or the legal online loan application you choose has the following characteristics. Remember, always be vigilant and be careful before, during, or after borrowing money.
Legal online loan companies are certainly registered and supervised by the Financial Services Authority (OJK). You can find the company name on the official website of the government agency.
To find out whether it is registered or not, in addition to checking the OJK website, you can also see that the company website has the OJK logo or not. Legal online loan companies overseen by the FSA are certainly bound by regulations that will protect the rights of consumers so that they are guaranteed safe.
Because it is registered, a legal online loan company will provide clear information about the company. Information about the company’s management and office address can be easily found.
You can even find social media accounts, e-mail services or company contacts. Consumer complaint services are available to facilitate users when facing problems or problems.
Legal online loan companies do not have provisions that must be completed before someone’s loan is given. You will be carefully selected and asked for data on self-identity, employment, and income value.
If your loan criteria and values match, you will only be given a loan. So, borrowing money online is not as easy as registering and getting money. Official and registered companies have a number of regulations for users.
Legal online loan companies will provide clear information related to interest or other loan costs. Generally, interest or loan costs range from 0.05% to 0.8% per day with a maximum repayment (including a fine) of 100% of the main loan.
In an official company if you are late or don’t pay, the maximum billing is done for 90 days. Risks for those who do not repay the loan after 90 days will be included in the Pusdafil blacklist.
Legal online loan companies have limited access to your cellphone. Companies can only access camera, microphone and location features. Does not request access to all user’s mobile devices. This is because they are subject to applicable regulations.
Illegal Online Loans
Illegal online loans mean online loans that are not registered with the OJK. However, the characteristics of illegal online loan companies are not only limited to that. Because they are not registered, many regulations are not implemented which will certainly trouble users.
Well, what are the features that you should be aware of? This is it.
Companies or applications for illegal money lending certainly do not have OJK permits, so they are not monitored by the agency. Because they are not registered, they may not follow the rules that should be so that it can harm the user.
Losses can be obtained not only in terms of material, but also social. Well, to avoid this, carefully examine the company where you will borrow money. Make sure it is registered and supervised by the FSA.
Generally, illegal online loan companies do not include a clear management identity. The office address is not easy to find, it can even be not listed. In addition, consumer complaint services are not available.
If the office address, contact, and company identity are not clear it is better not to proceed. Avoid companies like that because they will only cause problems later on.
If you see or know someone borrowing money online without needing a lot of data, you need to be suspicious. Generally, online loan companies that illegally provide the lure of quick and easy disbursement of funds.
You only need to upload photos and ID cards to get a loan, even though the data needed is not only that.
Unofficially registered online loan companies rarely provide clear information about interest and other loan costs. The interest charged can also be greater and many times more than the principal loan.
The maximum return (including penalties) is also unlimited. Information like this is generally not announced at the outset so you are not aware of the possible losses that will be experienced after borrowing money.
Borrowing money online at an illegal company can be a problem if you are late or don’t even pay off the loan. This is because the billing period has no time limit. Worse, billing is generally accompanied by threats of violence, insults, defamation, and the distribution of personal photos or videos.
For companies that are not registered, the requested access can be unlimited or the entire data on the cell phone. Because of this, too, the company can access the contacts on your cellphone.
That way, when you are late paying, billing is done by sending messages to all contacts on your mobile.