Online loans or loans are increasingly prevalent in Indonesia. These loans offer a variety of benefits that are attractive to many people. But if you’re not careful, there is a risk of not paying online loans that you have to pay. In order not to regret, know the risk here first!
Those who do not know the origin of the online loan alias
The name is already familiar to the public as we have often heard of new fintech emerging by offering various benefits to attract potential borrowers. Lending is a highly sought after loan option as this type of loan is very easy to apply and does not require a lot of requirements like bank lending.
Plus there is no Good Credit checking process that often frustrates the application when we apply for a bank loan. The average person who has previously declined a bank loan will definitely switch to an online loan which is likely to be higher.
The Risk of Not Paying Online Loans
But beyond the convenience of getting it, there is definitely a risk you must take. Especially if you can’t pay. So what is the risk of not paying online loans? How about we first look at the risks of not paying online loans you can face:
The first risk of not paying online loans is flowering. This term is certainly not a common term for those who frequently lend. The biggest reason people can’t pay any installment charges, whether it’s online loan or bank loan bills is that interest rates have increased their total interest rate.
This is usually because you delayed payment for up to 1 month. In the second month and on, if you do not pay the debt as well, then the interest rate will definitely increase.
There is a Fee Charge
In addition to flowers, there are also fine fees. In online lending, the cost of the fine can vary by a nominal amount. Some make up 10% of the installment bill, and some make up 30%. If the installment charge goes up to $ 50, then if you pay one month late, the fine will be $ 550 to $ 650.
Bad Credit Note
The next risk of not paying online loans is that you can have bad credit records. What is the effect? If someone has a bad credit record then when applying for a loan with a Good Credit checking process such as a mortgage (Home Ownership Credit), KKB (Motor Vehicle Credit), KUR (People’s Business Credit), etc., your chances of getting a loan are denied. will increase due to the history of previous installment payment delays.
Charged by the Loan Provider
When delinquent, there is definitely a risk of not paying online loans, which is being billed by the lender. First, charge over the phone or sent a notification email first. But if you don’t pay too much, then the lender will come home to the office where you work.
Of course, this applies to you if the lender is officially registered with the OJK (Financial Services Authority) as they will charge in a polite manner. But if the online lender is not registered with the OJK, they will charge you in a rude and inhumane way that will disrupt your life as well as those around you.
Financial Conditions Will Be Disturbed
The risk of not paying back your last online loan is that you may experience financial distress. Of course, this is very possible. Especially if you have a pile of debt and you can’t afford it because you don’t have the funds. You don’t want to be able to sell your valuable assets to cover the debt.