The Fintech Association Limits the Maximum Funding Interest to Bellow 100 Percent
Jakarta - The Indonesian Fintech Joint Funding Association (AFPI) claims to have applied the principles of consumer protection in carrying out its business. This was agreed by 73 Fintech Funding companies registered with the Financial Services Authority (OJK).
AFPI Deputy Chairman, Sunu Widiatmoko said, one of the consumer protections was about the maximum cost ceiling.
"Multipurpose Fintech which is a member of AFPI and registered in OJK is required and everyone must comply with the cost ceiling rules that protect the consumers. The intended cost ceiling means that if the loan has exceeded the maximum billing period of 90 days from the payment deadline, the total borrowing costs and principal are guaranteed will not increase, "explained Sunu in Office 88, Jakarta, Tuesday (11/6/2018), quoted from merdeka.com.
What is meant of cost ceiling can be illustrated as follows: if the consumer has a loan worth IDR 2 million and later has difficulty in repaying, then the maximum total loan value and overall costs may not exceed 100 percent of the principal or primary value. That is, there is no additional cost burden that continues.
The billing time stops on the 90th day of the payment due date. With the cost ceiling, AFPI ensures that the vision to conduct credit education to the community and ultimately improve financial inclusion can be achieved.
The application of this cost ceiling mechanism is left to each organizer. Based on data from AFPI, there are even a number of organizer platforms that have stopped costs after passing the 30th day.
"By applying this cost ceiling, consumers are protected from worries about burdensome regarding borrowing costs. Our presence in the market is to provide solutions and access for consumers who are not or have not been served by banking financial institutions because their credit data is still limited. "We provide education and understanding related to credit so that in the future they can grow into smart consumers and have a good credit track record," added Aidil Zulkifli as Executive Vice Chair for Multipurpose Funding at AFPI.
In addition, the credit record data of these customers will be used together with national banks, so that they can help the financial industry as a whole.