Online borrowing is gaining popularity in Indonesia, as it is now easy for people to use the internet to access funds.
There are 28 financial technology (fintech) startups that are already registered with the Financial Services Authority (OJK). These fintech startups offer financing and money lending through their websites or apps, which can be downloaded freely.
The online borrowing is done through peer to peer lending (P2PL), in which borrowers are matched with lenders. People who want to borrow money can go through this channel after submitting a request. Some fintech startups even ask you to connect to their social media accounts.
Then, the fintech company will assess your credit rating, like a bank does, and will inform you whether or not you are eligible for credit. They will also assess the risk level of your borrowing. The higher the risk, the more interest ...