Ensuring Customer Security, These Are 4 Important Points To Understand Before Applying For Paylater

Illustration. (Photo: Unsplash)

JAKARTA - In the past, people who could feel buying any item in installments mostly only had credit card facilities. This of course makes it difficult for consumers who do not have access to one of these loan products to be able to buy a product if they do not have cash or cash.

However, nowadays, anyone can enjoy the convenience of shopping by way of installments without a credit card or paylater. Indodana, for example, is a financial technology company that offers paylater facilities to groups of people who do not have credit card access.

Therefore, before deciding to apply for an installment service without a credit card/paylater, consider the following 4 important points that you must understand.

1. Ensure Fintech Company Credibility Guaranteed

Every fintech company or financial institution that offers financial products such as paylater services must have a business license, registered status, or supervision from the OJK as an official state institution in the field of financial services.

If a service is registered or even has a business license, it is certain that the credibility of the fintech company is guaranteed. On the other hand, if you have never met a company or financial institution and did not find its business status at OJK, you need to suspect its credibility. Therefore, only apply for this service at a fintech company that has high credibility and already has a business license from the OJK such as Indodana.

2. Have a clear and simple platform and service flow

In addition to credibility, you are also required to check the platform and service flow of companies that offer installment facilities without a credit card. If it is based offline, of course you must be able to visit the service office directly and carry out all service submission activities from the office.

As for fintechs that have an online base, you need to see if the company has a platform, such as an application or site that you can visit. Also make sure that the fintech company's platform is still regularly updated and remains actively operating until you use it.

The rest, you need to see if the service flow or application has been explained in detail and is not complicated. For example, for services from Indodana, the application or official website clearly states the various requirements to become a customer, such as a minimum age of 20 years, having a steady income, and various required documents that must be prepared.

Now, if you feel that you meet all these requirements, you can immediately apply for a paylater service directly from the Indodana site or application. Next, you can follow the registration instructions and fill out the application form, then submit. If approved, you can immediately use the service to buy various types of goods and services from dozens of well-known merchants in Indonesia who have partnered.

3. Number of Interest Rates and Tenors to Choose from

As a form of loan product, another important thing that you need to pay attention to is the amount of interest charged. Not only that, also know the length of the loan tenor that you can choose before deciding to use this credit service.

The reason is, both interest rates and loan tenors have a big influence on the number of bills that must be paid each time you use the service. If necessary, ask for clarity on the interest expense and loan tenor so that no regrets arise in the future from using a paylater service.

For example, at Indodana, the interest rates charged to customers are low and competitive. The tenor of installment payments is also very diverse and long, which is up to 12 months. So, when using a paylater service from Indodana, the amount of installments you have to pay will not mess up your financial condition.

4. Types of Applicable Fines and Amount of Late Fees

Not only interest and loan tenors, you can't avoid the existence of fines and late fees. In line with the previous point, you should also be aware of fines and late fees when applying for services. The reason is, if you are not vigilant, fines and late fees can make the installments swell.

Make sure that the amount of the fine when you are late paying the installments if you are still able to pay it off at any time. Because, no one can guarantee that your future financial condition will remain the same as it is today.

As with other loan products, installment services without a credit card / paylater also have the risk of making your finances worse if you are not careful in using them. So, so that the service remains safe to use, make sure to understand the 4 important points described above. That way, you will not experience bad risks and be able to get the maximum benefits.