Loanjol Is Not A Single Choice: Looking To Cooperatives As An Alternative Source Of Loans

It is clear in the previous article how personal data has been exposed by illegal online loan platforms. Even so, people still flocked to apply for loans. They seem indifferent to the risks that can befall them. Even though the community does not have a choice. One of the institutions that can be accessed by the public to obtain funds is a cooperative. VOI's typical series "Personal Data Broken down" will further discuss a broader perspective on funding lending institutions.

One thing that is difficult for people to refuse from online loan platforms (pinjol) is convenience. With so many people who are not bankable, who wouldn't be tempted when a platform offers loans with a fast and easy process?

As explained in the article "Buying and Selling E-KTP for Pinjol: Evidence of Personal Data that is Vulnerable to Stolen" to apply for a loan only with E-KTP capital. With an internet connection, we can get fresh funds as easily as a snap of our fingers.

In addition, the use of the borrowed money from the loan is also fully the right of the recipient. Funds are free to be used for anything. Starting from business capital, costs for medical treatment for parents, even just spending time to support a lifestyle. But for the last reason, that was what created new problems.

Quoting the Modern Society of Consumerism Journal, Indonesian society which is classified as a consumer society in the technological era continues to develop. This can be indicated by the proliferation of shopping centers, industries in the fields of fashion, beauty and culinary.

Not to mention that our love for foreign products has increasingly made a culture of consumerism gripping society. No wonder the products of fast food, fashion, foreign product technology flood the domestic market.

As a result, some people appear to be forced to follow the flow of such a lifestyle even though they do not have sufficient capital. This makes someone try to have more money to stay in that lifestyle. One way is by relying on loan.

You are both at a loss

There is nothing wrong with having a luxurious lifestyle and following these trends. The problem is when we insist on fulfilling that desire until we are willing to be in debt to loan and cannot pay it. Because the loss is not only to the borrower, but to the owner of the debt as well.

Quoting CNBC, licensed fintech P2P lending has a working system of rotating funds obtained from its investors to lend to its customers. If there are bad customers or are unable to repay the loan, fintech parties find it difficult to return the funds obtained from investors.

Therefore, finally to overcome this risk, online lenders provide relatively higher interest rates. In addition, the higher the amount of money borrowed, the higher the interest.

Infographics (Raga Granada / VOI)
Cooperative as an alternative

If indeed the goal is to improve the welfare of life, many think that borrowing is not the right way. Meanwhile, if you really need emergency funds or funds for productive purposes, maybe you can use a cooperative.

One of the advantages of cooperatives is that they are built with a friendlier system, because of the spirit of mutual cooperation in their management. This is based on RI Law No. 17 of 2012 concerning Cooperatives, cooperatives are formed on the principle of kinship and aiming for the welfare of its members.

Quoting Kompas, savings and loan cooperatives provide money loans to their members based on mutual agreements and agreements. Compared to bank loans, the requirements for applying for cooperative loans are somewhat easier.

Cooperatives can indeed be another solution if you need emergency funds. Moreover, the requirements are easy. Financial planner Aidil Akbar Madjid emphasized, if you really need a loan from a cooperative, how can the interest be higher or lower.

"But it should be that online loans have higher interest rates than cooperatives. Maybe if the cooperative the interest is 3-4 percent a month. If online loans can be 0.8 percent a day, maybe 10 percent a month. So it must be checked," he said.

Empowering

One of the successful examples of cooperatives comes from Pontianak. The cooperative's name is Keling Kumang. This cooperative was founded in March 1993.

It all started when Munaldus Nerang, a village boy who was the only one who became a scholar, was worried about the condition of his village, Tapang Sambas Village, Sekadau Hilir District. The condition of his village at that time was so poor, including his family.

Munal is the first scholar in his village. He graduated with a degree in mathematics in 1987 at Tanjungpura University. He continued his Masters studies at Ohio State University, USA, graduating in 1996.

Most of the population are rubber tappers and gardeners and do not attend school. Even though they have large land, not all of them are cultivated because they do not have capital. Finally, many people sell their land to oil palm companies. Munal also looked for a way so that the land was not sold.

Keling Kumang Cooperative (cukelingkumang.com)

Quoting Tempo Magazine, Munal previously founded the Pancur Kasih Credit Union in 1987, whose members were teachers in Pontianak. According to Munil, credit unions or credit cooperatives are a solution to poverty alleviation in many parts of the world.

Munal then gathered his brothers to explain the concept of a credit union. However, some of them are more interested in selling their land because they are tempted by money. They are also worried that Munal will take the money he has collected.

After various attempts and explanations, finally 26 of Munal's relatives joined as members of the cooperative. At that time, the money that was collected was Rp. 260 thousand. Over time, the members grew and reached 109 people at the end of 1993, with total assets of about 8 million.

Cooperative members also attend various classes. They also learn about the credit cooperative system, manage capital for productive purposes, and are encouraged to send their children to school so that their fate is better.

Another initial problem was that the money borrowed by the community was only for consumptive purposes. Even Munal's father himself borrowed money to build a house with cement walls. At that time the house with cement walls was considered luxurious.

But over time, the members' habits began to shift. They start borrowing money for crucial purposes, such as capital to cultivate land or children's schools. The Keling Kumang Cooperative continues to spread to other villages and many people are increasingly trusting Keling Kumang.

In February 2021, the credit cooperative has assets of up to IDR 1.6 trillion with new loans of around IDR 40 billion per month. Not only credit cooperatives, there are hotel businesses as well as several cooperatives selling seeds, fertilizers, and daily necessities.