Be aware of how much the loan costs
Other Costs Related to Online Loans
However, the fact is that fintech online loans don’t only charge interest fees. There are other costs that the borrower must pay.
Costs when 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 FAQs.
Costs 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.
Late fees and third party billing fees. When arrears payments, you must pay late fees of various types.
All of the above costs are worth paying attention to prospective customers before deciding to apply for a loan. A good fintech company will list all costs transparently.
Risk of Arrears on Online Loans
What if you don’t pay the loan obligations online?
Like all loans, you will be billed. The billing process starts from the ‘soft’ method, which is an SMS and e-mail reminder, then telephone and visit, to the involvement of third parties.
This billing process you need to read carefully in the loan agreement with fintech. Pay attention to how and how the billing process is carried out.
If the billing is unsuccessful and the customer remains in arrears, the last effort of the fintech company is to report delinquent 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 the credit bureau, chances are 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.
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.
What are exactly the loan costs
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 so that the application for funds quickly approved.
Especially when you know that credit applications are approved, you may not 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.
The Financial Services Authority (OJK) is very serious about handling online loans, especially related to public complaints. It seems, OJK wants the development of online credit not only to grow fast but also to provide adequate consumer protection from the start.
OJK does the following:
Establish a number of provisions (POJK 77 2016) governing online loans. The aspect of consumer protection is highly considered in this provision.
Open fintech consumer complaint services and online loans openly. Complaints are received and processed and submitted directly to the fintech company if necessary.
Closing illegal fintech routinely and campaigning to the public to avoid submitting to unofficial fintechs that do not have OJK permits.
Alert Illegal Fintech
The ease of offering loan products online and the high demand has created a negative excess, namely the mushrooming of illegal fintechs who do not have registration permits from the OJK.