Manage Loan Interest in Lending?
There Are No Rules Regarding the Interest of Lending Loans
The OJK expressed reluctance to regulate interest charged to borrowers through the Lending scheme, at least for now, and submit the process of determining loan interest to the market mechanism.
Head of the Executive Head of the Non-Bank Financial Industry, explained that currently, will still focus on developing the financial technology (Fintech) industry, especially peer to peer lending, which is currently operating. But related to the amount of interest imposed by the peer to peer lending company itself depends on the cost of funds of the respective P2P Lending companies so that the OJK does not set certain rules for interest.
He explained that there are several factors that underlie differences in interest considerations in lending and borrowing activities in Lending. In the borrowing activity, not all are the same, there is a difference in the time period of the borrower, whether within three days, a month, or even up to six months. In addition, the cost of funds of each P2P company is also different, so the policies of each P2P company in determining the interest rate are different.
Firdaus Djaelani also explained, by encouraging the P2P Lending industry to continue to grow, there will be more new Fintech companies born in the Lending field, so that competition in the market will be more stringent and market mechanisms that will determine the loan interest rates to customers later. In this case, he represented stating that submitted the amount of interest set on the dynamics of the market itself. The absence of interest limits will open competition among P2P companies. According to him, the borrower will definitely prefer the lowest interest from all loan offers.
However, the loan interest set will certainly not be much higher than the general loan interest set by banking institutions. For example, if the interest on a bank loan will only touch the figure of 12% to 14%, then the interest of the Lending loan has a range of 15% to 18%.
The P2P company itself should not have to worry about losing customers because the P2P service promises speed compared to the bank. In general, people who need loans in a short time will also not object to the loan interest set in the range of 1.5% to 2.0%. The community itself can determine the funds to be borrowed along with their interest. Meanwhile, P2P Lending service provider companies will certainly ask for guarantees to anticipate default.
In developing which serves Lending, has been the focus, this was explained by the Senior Executive Researcher. This was done at the end of last year, where the OJK issued the Financial Services Authority Regulation 2016 concerning Information Technology-Based Money Lending and Borrowing Services.
The potential and needs of Lending services are called very significant to be developed in the country.
“P2P Lending is currently needed because the majority of Indonesia’s population is poor and needs capital. Whereas overseas Fintech was developed following the needs of the people there. This technology-based loan will require other Fintech so this is a series of work. “
Starting from Lending, can also regulate the regulation of companies. OJK itself plans to regulate the Fintech scoring needed to analyze prospective debtors. The character of the prospective borrower can be the main rating compared to collateral. This is certainly different from the conventional banking work patterns. also supports Lending because it is in line with mission in financial inclusion, with the main goal to reach customers in all corners of Indonesia.
Role as Supervisor of Lending Activities
The interest set in Lending companies is indeed not determined. In this case, the also sees that by allowing even unregulated interest rates to be formed automatically through the mechanism of competition in the market itself. Fully supports the existence of the Lending company because it is in line with the mission, namely in terms of financial inclusion.