Now, you don’t need to worry if you need money urgently, you can apply for a loan online. As the name suggests, people who borrow money can submit requests online at the place that provides it.
As easy as making a loan request, borrowed money can be received in minutes. This fast and easy way to borrow money online has made the trend to borrow money online the choice of many people.
However, don’t just talk about the ease and benefits you need to find out. When borrowing money from an institution, there are a lot of points that you need to pay attention to. Now, for online loans, you need to know the following things.
Loan Interest is Calculated Daily
One that makes people interested in borrowing online is that online loans can be directly liquid without any hassle. However, behind all these conveniences do not forget there is interest to be paid.
All you need to know, the interest applied by online loan companies is per day or daily. So, don’t be surprised when paying off debt, the interest charged can be quite high.
Do not be afraid right away, listed online loan companies have transparent interest fees. The provisions of the Financial Services Authority (OJK) limit the highest interest rate of 0.8% per day.
Varied Repayment Periods
Besides being able to borrow any money, the repayment period can also be determined in a matter of days. You can take a loan and pay it out in 10 days, 30 days, 3 months, or 6 months.
Noteworthy of the length of time for repayment is the interest that needs to be paid. If you borrow money from an unregistered company, daily interest alone can be very burdensome for the borrowers.
So, pay close attention to the company you choose and the terms and conditions that apply. Make sure to choose the best online and registered loan company. Do not get trapped in debt that can not be paid.
Select Registered Online Loan Companies
As mentioned above, borrowing money from listed companies is one point that cannot be ignored. This point needs to be your first concern before borrowing money.
Do not just because of urgency, you just choose an online money loan company. If you borrow money from an illegal company, there are many risks that can harm you.
Not only is the interest rate too high, but also your personal life can be disrupted. This is because illegal companies can use various methods to collect money. While listed companies, use billing methods that are in accordance with OJK regulations.
Personal data taken from mobile phones has also been determined and is strictly restricted by the FSA. So, the security of personal data can be guaranteed.
Risk of Mobile Data Taken
Even though online loans get liquid quickly, you can’t avoid the risk of this one. When you are about to register and apply for a loan, you should already know and understand that your mobile data is taken by the company where you borrowed money.
However, this mobile data provision is also regulated by the OJK. So, for companies registered only may take Camera, Location and Microphone data. So, loan transactions can be safer and personal data can also be protected.
This does not apply if you take a loan at an illegal company. Mobile data that is retrieved can be unlimited. The data will be used for billing if loan payments are in arrears.
They can just take contact data on your cellphone. If so, all people in contact can be contacted by the company concerned to collect debt payments.
Events like this not only make you uncomfortable, but can damage your relationship with friends or coworkers.
Can Report If There Is A Violation
For companies overseen by the FSA, users can report if there are obstacles during the online lending process. You can visit the agency’s website and select the Consumer menu and click Consumer Complaints.
It should be noted, the FSA can only follow up on problems that occur in online money lending companies that are legal or overseen by the agency. So, it is very important to borrow from a registered body.
By borrowing money from a legal entity, if a problem occurs you can ask for help and make a report. In addition, personal data can be protected and the rules applied do not harm the borrower.
Can be Used for Shopping & Education Pay
Online loans that can be immediately disbursed in minutes can not only be withdrawn in cash. Online money loans are now also available as a payment on various online shopping sites or e-commerce.
Many loan companies are now working with shopping or e-commerce sites to make it easier for their users to transact. This situation can be advantageous if it can be used wisely. However, it can be a problem too if you can’t put the brakes on shopping habits.
In addition to shopping, online loans are also available for course payments. Debt for education can include good debt. This is because you use money for something productive.
With higher knowledge, the opportunity to find and make money can also be greater in the future.