TRIBUNNEWS.COM, JAKARTA — Public unrest about terrorist acts of financial technology (fintech) lending services or online loan (illegal borrowing) also affects borrowing.
These loan companies, which already have business licenses, cut the interest on their loans to the public.
The amount of interest that is cut is quite high, namely up to 50 percent.
Secretary General of the Indonesian Joint Funding Fintech Association (AFPI) Sunu Widyatmoko said this was an effort by all official members to deal with illegal loans.
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“We as industry representatives need to take steps to make this industry healthier. Therefore, we decided to temporarily reduce the level of borrowing costs because it includes interest and others up to 50 percent,” he said during a webinar, this weekend.
Sunu said that according to the code of ethics in the lending industry or financial technology (fintech) lending, the loan interest is not more than 0.8 percent per day.
“With that, it was decided to drop 50 percent to 0.4 percent,” he said.
Meanwhile, the impact of reducing interest on fintech lending companies is that they must be really selective in choosing prospective borrowers.
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“Of course the effect for our members is to choose a borrower with low risk. The effect will be significant, so we decided to apply for 1 month, this is a tough decision, we have to adjust our product, our risk management.”
“The consequence of lowering the cost of borrowing is that our members have to be more stringent in selecting who to give loans to.
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