Understand Risks for Safe Use of Online Loans

Currently, borrowing money through online loan apps or P2P lending platforms (pinjol) has gained popularity due to easy access and fast processes. This trend is increasingly relevant as societal needs grow alongside advancing economic development.

According to a report from the Financial Services Authority (OJK), the amount of financing provided through online loans or peer-to-peer (P2P) lending reached 61.1 trillion rupiahs in February 2024, marking a 21.98 percent increase compared to the same period in 2023.

Despite the convenience offered by borrowing via pinjols, there are security risks that need to be considered. OJK reported that between April and May 2024, 654 illegal pinjol websites and apps were identified. Moreover, there were 42 instances of personal loan offers that could potentially harm the public and violate personal data protection rules.

Therefore, it is crucial for users to choose legal online loan platforms, ensuring transaction security to avoid financial losses or personal data leaks. A good understanding of financial literacy greatly assists in selecting appropriate financial services tailored to your needs, while ensuring transactions are conducted safely and reliably.

Here are a few things to consider before deciding to borrow money through pinjols:

1. Ensure the Lending Platform is Registered with OJK

It's crucial to ensure that the lending platform you choose is registered and licensed by OJK. This demonstrates that the service provider has met security standards and regulations, and is closely monitored by authorities. By selecting a registered platform, you can have greater confidence that your financial transactions are conducted in a safe and reliable environment, reducing the risk of falling victim to misuse or breaches of personal data.

For added caution, you can check the list of identified illegal online loans through the official OJK page.

2. Evaluate Your Loan Repayment Ability

Before obtaining an online loan, it's important to carefully assess your ability to repay it. Consider the fees and interest associated with the loan, and thoroughly evaluate your income and expenses throughout the borrowing period. Utilize loan simulation tools provided to fully understand all risks and obligations upfront, enabling you to avoid debt traps and manage your loan responsibly.

3. Don't be lazy to read the terms and conditions

Be sure to always read the terms and conditions carefully. Check the privacy policy to understand clearly how your personal data will be collected, processed, and protected by the platform. Also, understand the rights and responsibilities that must be adhered to, as well as the possible sanctions for violating the established rules. This way, you can make informed decisions and safeguard yourself from potential risks when using the service.

4. Ensure Apps and Consumer Services Use Official Channels

Ensure to download apps only from official sources like Google Play Store or Apple App Store to guarantee their security. Also, verify if the company has an official website that provides comprehensive information for user needs. Equally important, ensure there is consumer service or customer support available to address any issues or inquiries related to the service used.

5. Always Protect Personal Data

Avoid sharing sensitive information casually, such as identity numbers, bank account numbers, or passwords, with unauthorized parties. Use strong and unique passwords for your accounts, and make sure to regularly update your pinjol apps.

Be cautious of suspicious links or emails that claim to be from the pinjol service you are using, as they may be phishing attempts to steal your personal information. By maintaining this caution, you can minimize the risk of personal data leaks or misuse when using online loan services.

Awareness of the risks involved in using pinjol apps is crucial to safeguard yourself against potential fraud and data breaches.

Let's work together to enhance awareness in using financial services, enabling us to make informed and secure decisions in managing our personal finances.

OJK encourages the public to actively report any suspicious or potentially illegal information or offers of investments and online loans through their official contacts: phone number 157, WhatsApp (081157157157), or emails konsumen@ojk.go.id and satgaspasti@ojk.go.id.