The presence of Fintech brings innovations that benefit the community. Starting from the speed of the disbursement process, the ease of filing conditions without collateral and without a credit card to the application of the latest technology that offers a way to evaluate credit quickly and safely.
Fintech is suitable for people who need urgent loans and do not have collateral and credit cards. Because Fintech dares to provide direct online loans liquid within minutes with ID requirements, without the need for collateral or credit cards.
However, as reported in many media, online loans on the other hand raises many issues and complaints from the public. Immaculate billing methods, massive use of personal data on mobile phones and the proliferation of illegal fintechs that are out of control.
As a prospective loans like likely loans borrower, any loan product, must have two sides, positive and negative. There are advantages and disadvantages.
Who does not want to borrow money online immediately liquid, without conditions and without collateral. Moreover, KTA access to banks is not an easy matter in Indonesia.
So, the need for online loans does exist in the community. Now, just how prospective borrowers react to it.
The Best Personal Online Loan Application 2019
Based on observations in the field, I collected 10 online personal loan tricks in 2018. Tricks that can be used to find the best personal money lenders and personal money lenders.
It should be noted that this trick is related to individual personal loans. Not for loans to companies. This is a private money lender.
# 1 Required to Download Money Borrowing Application Online
In filing to be disbursed quickly, prospective borrowers must submit via the online money lending application. The application is downloaded on Playstore for android and Apple store for IOS.
Almost all Fintech requires submission via the application so that you cannot submit via the Fintech website. The purpose of using the application is the convenience of the customer side and withdrawal of mobile data for credit analysis on the side of the company Fintech.
Therefore, for those who are interested in online credit, a smartphone is a prerequisite for being able to download a loan and apply for credit.
# 2 Calculation of Personal Online Loan Interest
One difference with bank loans, online loans offer a daily tenor. Customers do not need to apply for 30 days, but can be daily, for example 10 days of loans.
With a daily loan period, the borrower needs to pay attention to how the interest is calculated. There are two methods of calculation, namely:
- Flat interest with obligations is calculated based on the loan principal. For example a loan of 1 million for 30 days with 0.5% interest per day then the interest is (0.5% x 30 = 15%) x 1 million to 150 thousand.
- Interest interest (compounding) with obligations is calculated based on the loan principal and loan interest. For example a loan of 1 million for 30 days with 0.5% interest per day then the compounding interest obligation (0.5% 2 x 30 x 1 million) becomes 161 thousand.
When submitting a money injection online without collateral, you see how the calculation of interest applied by Fintech.
# 3 Understand Your Mobile Data Taken
Because it offers immediate liquid speed in minutes, without collateral and without a credit card, Fintech requires sufficient data to evaluate credit applications.
The evaluation methods used by Fintech are different from those of banks in general. Fintech utilizes data from a customer’s cellphone to calculate credit scoring that determines whether a person is worthy of credit.
The existence of credit scoring with this sophisticated algorithm is believed to make the Fintech company can provide credit quickly, without collateral and immediately liquid in 5 minutes. Of course, consent or permission to withdraw funds must be requested in advance to prospective customers.
Important: customers understand about withdrawing this mobile data during the online credit application process.
Because in the media, there are many complaints by borrowers when billing is done fintech to family, relatives or close friends of customers (contained in the customer’s cellphone phonebook), while actually when submitting, the borrower has given approval about mobile data access and possible billing to the families listed on cellphone.
OJK states that mobile data that may be withdrawn by P2P is Camera, Location and Microphone. Beyond those three things, the FSA is forbidden to be withdrawn from cellphone data.
# 4 Be aware of how much the loan costs
What are the costs of making a loan? Almost all of them answered the interest to be paid when due along with the loan principal.
However, the fact is that online fintech loans don’t only charge interest fees. There are other costs that the borrower must pay.
First , the cost of applying for a loan, which includes upfront fees / admin fees, interest, insurance costs or other coverage, and provisions. These fees must be checked at the time of submission, usually explained in the lending and borrowing FAQ.
Second , the fee if the borrower makes early repayment. Not all Fintechs charge this fee, but there are those who ask customers to pay a fee if they pay off more quickly than they are due.
Third , late fees and third party billing fees. When arrears payments, you must pay late fees of various types.
All costs above are worth paying attention to prospective customers before deciding to apply for a loan. A good Fintech company will list all costs transparently.
# 5 Risks of Debt Loans Online
What if you don’t pay the loan obligations online?
Like all loans, you will be billed. The billing process starts from the ‘soft’ way, namely reminder sms and e-mail, then telephone and visit, to the involvement of third parties.
You need to read this billing process carefully in the loan agreement with Fintech. Pay attention to how and how the billing process is carried out.
If billing is unsuccessful and the customer remains in arrears, the last effort of the Fintech company is to report the outstanding credit obligations and status to the credit bureau. Credit bureaus record all loans reported by their members, in this case banks, finance companies and fintech online loans.
This means that if you have a bad record (in arrears) on credit bureaus, chances are that when you apply for credit at another financial institution it will be difficult to approve. Because other financial institutions will see a bad record of your credit arrears.
# 6 Online Consumer Loan Services
It is important to note, whether online loan companies have customer services that are clearly listed on the site and can be contacted by customers. There are telephone numbers, office and email addresses and social media for customers to submit complaints.
As an individual personal loan, Fintech should have adequate customer service. This is important for serving individual personal loans.
The problem is that many prospective customers don’t pay attention to this issue. Understandably, the goal is to get a cash loan without collateral fast process so that the focus is to quickly approve the application for funds.
Especially when you know that credit applications are approved, you probably won’t pay any more attention to the availability of customer service contacts.
Just looking for customer service contacts when a problem arises or dealing with billing and applying for payment relief.