Emergency situations can happen to anyone. Its sudden appearance can certainly disrupt our financial cash flow. As a result, when we are pressed to seek financial assistance, we tend to look for instant ways. One of them is taking advantage of moneylenders.
Unfortunately, the existence of these moneylenders can bring havoc to anyone who deals with them. This is because the amount of interest that exists can make anyone continuously in debt.
Moneylenders themselves are a profession that is quite mushrooming in many areas, especially rural areas. The loan sharks make a profit by lending money and making a profit from the interest charged.
Different regions, different names. They can be called loan sharks, middlemen, toke, ceti, and many more. So that you are not confused to understand what a moneylender is, let's look at the following article.
The Definition of Moneylenders
Quoted from the Big Indonesian Dictionary (KBBI), the word moneylender has the meaning of people who make a living by paying interest. Meanwhile, according to the Financial Services Authority (OJK), moneylenders have the meaning of people who lend a certain amount of money to the public and benefit from the applicable interest.
If we conclude, that moneylenders are people who lend money to anyone and benefit from the interest on the loan.
Moneylenders tend to target the lower middle class. For example, small traders in the village. They deliberately target this group because of their innocence, ease to be deceived, and the existence of economic pressure. This loophole is used by loan sharks to reap huge profits.
In offering their services, moneylenders can offer directly or take advantage of the latest technology such as WhatsApp, SMS, and social media to offer loan services.
Characteristics of Moneylenders
To make it easier for you to understand and recognize loan sharks, let's understand the characteristics below.
1. Fast Loan Disbursement
Unlike banks or finance companies, disbursement of loan funds from moneylenders can be very fast and without the need to attach various conditions.
2. No Guarantee / No Collateral
Loans from moneylenders can be done easily and without collateral. This convenience is also one of the reasons why the interest rates are much higher than banks or finance companies. Not to mention they also often impose other additional costs.
3. Huge Interest
The amount of interest that applies to each loan shark can vary greatly. This is because the amount of interest that exists is determined by the moneylenders themselves.
Even so, moneylenders are still in great demand by people because of the ease of making loans without collateral.
4. Commonly Found in Villages, Traditional Markets
As previously explained, moneylenders are mushrooming in villages and markets. This is because the villagers tend to be innocent and the current economic crash forces them to borrow.
5. Billing Rudely
How to collect moneylenders tend to be arbitrary. They act arbitrarily, especially if the existing debt is not paid according to the agreed maturity.
Difference between moneylenders and debt collector
Many people often misinterpret between loan sharks and debt collectors. They think that they are the same. In fact, moneylenders and debt collectors are two different things.
Moneylenders are people who offer loan funds illegally (not supervised by legal institutions or get official permission). Meanwhile, debt collectors are third parties who are intentionally sent by financial institutions to collect debts or loans from related debtors.
Not only that, debt collectors have collection ethics that must be complied with in accordance with applicable regulations. It is different from moneylenders who can send third parties as debt collectors and collect arbitrarily and often involve violence.
Image Source: Freepik/tirachardz
Moneylenders generally apply for a loan system or financial product in the form of Mobile Bank / Daily Bank / Rent Pawn / Weekly or Monthly Interest Payable.
In addition, moneylenders also have a very simple loan system, namely applying for fast liquid loans without collateral or collateral. Unlike banks or financial institutions that tend to apply various procedures or requirements that need to be completed. This is why loan sharks are still the preferred option to this day even though the interest imposed is very stifling.
For example, you make a loan of IDR 3 million with a maturity of 1 month. The interest given by the loan shark can be 10% of your total loan or IDR 300 thousand. If you experience delays in payments, the interest can continue to grow and swell.
Another system that applies to moneylenders is the billing process which tends to be arbitrary. They can charge you rudely and damage things if you haven't paid off your debt for a long time.
How to Deal with Moneylenders
If you have already borrowed from moneylenders, you don't have to worry. Some of the ways below you can follow to deal with loan sharks.
1. Face it Calmly, Greet It Well
The policies implemented by loan sharks may be very burdensome for us, even so, we cannot blame the loan sharks completely. Because from the start we started borrowing, it means that we have agreed with the application of the interest given. So, if these loan sharks often pressure you to pay off existing debts, that's normal.
2. Recalculate the Amount of Debt that Needs to be Paid
The second step to dealing with moneylenders is to invite them to discuss the nominal debt you have and the interest. This is done to avoid unreasonable amounts of debt bills.
3. Negotiating Loan Repayment Time
If you are faced with a situation where you are constrained by paying off the loan according to the maturity period, then you can apply this way.
This method can also be submitted if you object to the applicable interest rate and need additional time to pay it off.
4. Applying for Interest Elimination
The fourth way that you can do in dealing with loans to moneylenders is to apply for interest abolition.
Although it sounds a bit impossible, if you submit this request properly, it is not impossible that the loan shark will give you concessions in the form of deletion or deductions.
5. Ask for Assistance
If you feel you can't do the previous 4 ways, you can consider asking for help from people who are more experienced in dealing with moneylenders and debts.
With this assistance, you can minimize unwanted things. For example threats, abusive billing, confiscation of valuables, and others.
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Sobat BFI, that's the explanation of the moneylenders. Hopefully, this article can help you understand what a moneylender is and how to deal with it. To avoid unwanted things, be sure to borrow from a trusted financial institution. May we all be free from the snares of harmful loan sharks.
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