Increase Business Capital with Safe Online Loans

In facing fast and complex business dynamics, business actors are often faced with financial challenges that require fast and efficient solutions. To answer this challenge, more and more business people are turning to online loan as a quick solution.

Get to know online loans

Quoted from Financial Fervices Authority, online lending involves providing financial services through a fintech lending platform, where the lender (Actioncalendar) can bring themselves together with loan recipients (borrowers) to enter into a loan agreement. All transactions are carried out electronically and use rupiah currency.

As of October 9 2023, the Financial Services Authority (OJK) recorded that the total number of fintech lending providers licensed by the OJK was 101 companies. In this context, it is important for business actors who will apply for online loans to ensure that the fintech lending platform they choose is permitted and regulated by the OJK. This aims to ensure that the platform is legal and safe.

General Conditions for Applying for Online Loans

Personal Identity (KTP)

One of the main requirements is a valid Resident Identity Card (KTP). KTP is used as self-identification and a verification tool by loan providers.

Age and Supporting Documents

Prospective borrowers generally must be at least 21 years old. Some others apply an age limit of 18 years with certain conditions. In addition, supporting documents such as NPWP (Taxpayer Identification Number), SIUP (Trade Business License), or business establishment deed may be required.

Active Bank Account

Borrowers need to have an active bank account to carry out loan transactions, including receipt and payment of installments.

Income and Financial Reports

Most online loan providers ask for proof of steady income and business financial reports. This is necessary to assess the borrower's ability to repay the loan.

Active Mobile Number

A valid mobile number is required for communication and transaction confirmation. Text messages or phone calls are often used to confirm information.

Meanwhile, other additional conditions may be required and will be adjusted to the policies of each loan service provider.

Regulations Governing Online Loans

OJK has a crucial role in supervising and regulating financial services in Indonesia, including the regulation of online loans. Previously, online loans were regulated by OJK Regulation no. 77/POJK.01/2016, which specifically regulates information technology-based money lending and borrowing services.

This regulation has now been updated and improved through the issuance of POJK Number 10/POJK.05/2022 concerning Information Technology-Based Joint Funding Services (POJK LPBBTI/Fintech P2P Lending). This new publication repeals and replaces previous regulations, providing a stronger legal framework and in line with the latest developments in the online lending industry.

You can refer to the official docs POJK Number 10/POJK.05/2022 on the official OJK website to get further details regarding the latest provisions and regulations governing online loan services, especially information technology-based joint funding services (Fintech P2P Lending).

Online loans through fintech lending provide new opportunities for business actors to overcome financial obstacles in a more efficient way. It is important for business actors to evaluate risks wisely, choose a trusted platform, and comply with applicable regulations. Thus, online loans can be an effective tool in supporting business growth and sustainability in this digital era.