Here Are Some Tips So That You Don't Get Caught In An Illegal Loan

JAKARTA - The Financial Services Authority (OJK) has released at least 3,515 illegal online loan (pinjol) companies as of last October 2021. With the increasing growth, OJK has gradually frozen the illegal lending practice which is increasingly troubling.

Now, there are only around 104 peer-to-peer lending fintech companies that are registered and licensed by the OJK and can operate legally.

Generally, the victims of this illegal loan entanglement have little knowledge of financing services and are facing urgent financial needs. This is the cause that makes people trapped by promises of illegal borrowing.

It's a good idea to check and recheck first before determining to whom and through what application you will borrow. You can get Mandala Finance services through the Mantis application.

Mantis is a trusted and safe multipurpose financing application which is a digital innovation from Mandala Finance. With Mandala's role as a finance company with more than 24 years of experience in the financial services industry and spread throughout the archipelago, Mantis is designed to provide a solid foundation for solutions to the financial problems of the Indonesian people.

Director of Information Technology at PT Mandala Multifinance Tbk Felix Nugroho in his written statement, quoted Monday, November 29, he gave a number of tips for the public to be able to distinguish between illegal online loans and the Mantis multipurpose application in order to avoid bad risks in the future. Mantis is not like a loan, Mantis provides a safe and fast financing process after the data or documents prepared by the customer are approved.

Of the many players in this industry, it's a good idea to check the legality first. Checking the credibility of lenders to OJK can be the first step. This security is one of the priorities ensured by companies that provide financing services through applications.

The public can also examine the interest rate offered for the proposed loan, the late fees and other costs. If it seems too easy let alone oversimplify, then you need to be suspicious. Normally, a legal borrower would not be so rash in calculating the amount of interest, as if he wanted to lend for free because at least there were goods or letters that were guaranteed.

At the final stage in choosing an online loan, the public must pay close attention to the services offered and the benefits and risks. Reviewing needs and capabilities so that they are more thorough and critical regarding costs, collateral, and tenors.

In addition to the points above, Felix Nugroho also suggested that the public can be more selective by seeking information about the number of users of the loan application.

"If there are many people who use the application, it means that there is already growing trust in the brand itself," said Felix.

For nearly two years, Mantis has received a positive response from 30,000 downloads. The number of active monthly users of Mantis reaches more than 8,700 Partners spread throughout Indonesia. In terms of user age, 37 percent of them are 25-34 years old and 25 percent are 18-23 years old. This means that Mantis users are dominated by Millennials and Generation Z.

"With technology that continues to develop and the growth of fintech in Indonesia, we hope to improve services and focus on our target next year, which is to increase the number of users to 500,000 users," Felix said.