Why Online Loans are Harmful – Today, many companies have been established specifically to provide Loans (Online Loans) to the public. Of course some of these companies are already under the auspices of the OJK (Financial Services Authority). However, there are still many illegal pinjels scattered around. Both legal and illegal Pinjol can still be very detrimental, you know!
But, why is it that pinjol is detrimental? The Whiz financial application have the answer, you know. Let's see the reasons why pinjol is detrimental to you!
Also Read: Managing Personal Finances, Effective Ways and Tips
Why is Pinjol Harmful?
Pinjol or Online Loans are technology-based loans in the financial sector that use technological advances to provide loans to someone who needs it without having to meet in person. In general, legal Pinjol companies use applications to connect with potential borrowers. Then, why is Pinjol detrimental?
High Interest Rate
First, you have to know the fact that Pinjol or Online Loans often have high interest rates. Of course this is because they profit from lending their money from the interest rate. This high interest rate will also usually be determined by the lending service provider.
Until now, the OJK or the Financial Services Authority has not provided an interest limit for online loans.
Low Loan Ceiling
In addition to high interest rates, in general, Pinjol also has a low lending ceiling or limit. The average is under IDR 5 million per loan. In fact, there is also a Pinjol service whose loan ceiling is only Rp. 1 million. This is because the Pinjol service provider requires many borrowers at one time to maximize the profits they get.
Threatened Personal Data Security
When you apply for or register for an online loan, the loan service provider will ask for your personal data as a requirement. The personal data that you provide to them is very risky to be misused if you apply for an illegal online loan.
There are many stories about the unpleasant experiences experienced by less fortunate borrowers. This is very likely to happen to the borrower and his family. In addition, because your personal data is already owned by the loan service provider, it will be very difficult to avoid the dangers and threats from them
Just like conventional loans, Pinjol also has regulations or provisions regarding fines, especially those related to late payments. Not only late interest penalties, they can also provide other fines.
Of course this is very detrimental because not only do you have to pay the loan, you are also required to pay the interest and other additional penalties.
Disturbed Family Peace
Whizparents, one of the biggest downsides is that your family will be disturbed. Debt collectors will try to contact your family members or even come to their homes to find and collect you. Therefore, you must understand the risks for you and your family before trying an online loan.
When you apply for or register for a loan online, of course they will ask for your personal data, this includes your home address and maybe your other family members. This is the beginning of them starting to disturb the peace of the family.
Bad Credit History
This applies specifically to loan applications to official online loan companies that have been registered with the OJK. Late payments, especially if you don't pay the loan, will definitely affect the credit score on OJK SLIK.
The sanctions that will be imposed if you do not pay the online loan will certainly be very detrimental. Especially when your OJK SLIK score is bad then you will have difficulty applying for a loan in the future.
So, instead of applying for an online loan, it's a good idea to learn to manage your finances well. Well, Whiz offers many features that can help Whizparents and your children manage their finances so they can avoid having to borrow money from online loan services! Come on, register now!
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