Loan myths are often the subject of discussion everywhere. Not a few people immediately believe it when they hear it. In fact, what they hear is not necessarily true.
What are the loan myths circulating in the community? Check out the following reviews so you can be calmer when you intend to apply for a loan!
Commonly Heard Loan Myths
There are at least 7 loan myths circulating in the community. Whether it's a conventional loan or an online loan. More details will be discussed in the following description.
1. Credit Score Or Financial Records Is The Main Requirement
A loan myth that is often heard is that your loan will be approved if your credit score or financial record is good.
Indeed, credit score or financial record is the most decisive factor. However, if other requirements are not met, your loan will not necessarily be approved even though your credit score is in a good category.
For example, incomplete documents or collateralized assets do not meet the requirements requested by the bank or finance company.
So that the loan you apply for is easily approved, the tip is to make sure that you really study the terms and conditions imposed by the intended financial institution. By studying the terms carefully, your loan may be more likely to be approved.
2. If Rejected Once, You Will Be Rejected Everywhere
Still related to previous loan myths, maybe you have applied for a loan but were rejected for one reason or another.
It is said that if your loan is rejected once, then the loan application at a different financial institution will also be rejected.
However, this statement is not necessarily the case. Because you can still apply for a loan at another financial institution or bank. Learn the requirements that you can meet so that your loan application has a high probability of being approved.
3. Debt Is Not Good
The word debt or indebted has a pretty bad connotation in our society. Not a few people often label people who have debt as something despicable.
In fact, debt is not always bad, you know! There is a type of debt that can actually increase your assets and help the economy become better, this type of debt is called productive debt.
Productive debt is a loan of funds that is used for something that can generate profits in the future. For example, existing loans are managed for business capital or promotional activities.
Although debt is a natural thing, on the other hand, you also need to remember if the proportion of debt or the ideal debt service ratio is below 30% of your monthly income.
4. Can't Apply for More Than One Loan
Another loan myth that is often heard is that you can't apply for more than one loan. In fact, you can apply for a personal loan from several financial institutions at once, provided you are able to pay off all of them.
However, the application process will take longer. This is because your financial records will be checked with Bank Indonesia. So it is less effective if you need funds in a short time.
5. Borrowing from the Biggest Financial Institutions
The next loan myth that you may have heard is that if you apply for a loan from a large financial institution or bank, your loan will be more easily approved.
Actually, it has no effect. Both large and small financial institutions will check the terms and financial records that you have thoroughly before approving a loan application. The interest rates offered between financial institutions are also quite competitive.
6. Dangerous Online Loans
Cases of borrowing or illegal online loans are quite common in the community lately. Due to the outstanding cases, the image of fintech has changed for the worse. As a result, many ordinary people think that online loans are something dangerous.
Not to mention acts of terror and arbitrary actions of online loan collectors (debt collectors). Starting from spreading the borrower's personal data to terrorizing the closest relatives.
This is increasingly becoming a trigger for the myth of dangerous online loans, which are increasingly trusted by the wider community.
In fact, the myth is not entirely true. As long as you make an online loan at a trusted company, the things previously mentioned will not happen to you.
Image Source: Freepik/wirestock
Here are some tips that you can do before you make up your mind to make an online loan.
1. Make sure the online loan you choose has been registered with the Financial Services Authority (OJK)
2. The company has a clear management identity and office address
3. Existing loan applications will be selected first
4. Interest and loan fees (fees) are transparent
5. Borrowers who cannot pay according to the existing time limit (maximum 90 days) will be entered into the Fintech Data Center blacklist. So you can't apply for loans to other fintech sites, applications, or platforms.
6. Have a complaint service
7. Online loan applications can only access cameras, microphones, and locations
8. The debt collector must have a billing certification from AFPI (Indonesian Joint Funding Fintech Association)
9. Do not offer online loans through private communication channels. For example via SMS and WhatsApp.
7. Online Loans Are Not Transparent
The easy and fast disbursement process makes many people think that online loans are not transparent.
In reality, this is just a borrowing myth. Basically, online loans utilize powerful technology that can facilitate the data verification process to the disbursement process easily and efficiently.
In the process, the inputted information is stored securely in the database and allows application or website users to access information about personal data, bills, and other details on the dashboard available in each borrower's account.
How to Choose the Right Financial Institution
After you know some of the loan myths circulating out there, it's a good idea to equip yourself to avoid illegal loans in the following ways.
1. Make sure it is registered and supervised by OJK
Financial institutions that are legal and operate in accordance with government regulations, of course, already have official permits from the Financial Services Authority (OJK).
If you are in doubt, you can directly check the name of the financial institution you are aiming for on the OJK official website. If there are no search results displayed later, you should be wary and you should choose another financial institution.
2. Have Clear Financial Products
Every financial institution certainly has a financial product that they offer. Each of these products has its own privileges and terms and conditions.
If someone offers you financial products without clear detailed information, you must be vigilant because the loans offered can harm you and become financial problems.
3. Management Identity and Clear Office Address
Beware of fake companies, especially for online loans. The reason is, not a few illegal financial institutions that deliberately offer loans with various seductions that actually bring havoc to consumers or borrowers.
You can confirm this by finding out whether the company has been officially registered with the OJK, whether there is a valid office address on the Google search engine, and when visited the office really exists (not fictitious).
4. Have a Complaint Service
Legal financial institutions must have a complaint service. This is based on awareness and obligation to fulfill consumer rights. An example is a right to good service.
One of the trusted financing companies that you can choose to apply for a fast loan is BFI Finance. BFI Finance has been established in 1982 and became the first financing company in Indonesia to list its shares on the Indonesia Stock Exchange.
Simply by applying for a vehicle BPKB guarantee loan or a house certificate, you can get loan funds for various types of needs. Starting from business capital, and education costs, to lifestyle.
Further information can be found at the following link.
Disbursement of funds up to 85% of the value of the vehicle and a tenor of up to 4 years.
Loan funds with a fast process and a maximum tenor of up to 24 months.
Low interest starts from 0.9% with a long tenor of up to 7 years.
Well, which loan myths have you heard and believed before? Hopefully, the above review can help you in avoiding the myths or hoaxes circulating. Be sure to be careful before acting.