Jakarta, hitclubapk3 Indonesia
—
Financial Services Authority (
FSA
) restricts ‘tadpole’ payment schemes (
tadpole
) on online loans aka
pinjol
.
Scheme
tadpole
Pinjol is a model where the installments are very large at the start and then get smaller in the following period.
This name is taken from the word ‘tadpole’ which means tadpole, describing the shape of the large head, small body and tapered tail, and comes in various variations.
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“To protect consumers from unhealthy funding practices, OJK has restricted the practice of tadpole payment schemes by Pindar Organizers,” said Chief Executive for Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Services Institutions (PVML) Agusman in a written statement, Wednesday (17/12).
Agusman said the practice of the tadpole payment scheme could only be carried out if three conditions were met.
First,
comply with applicable economic benefit limitation provisions.
Second
, fulfill the transparency aspect, namely conveying complete information to recipients of funds and funders to ensure that the parties understand and agree on a large installment payment scheme in the initial period (front-loaded installments/
tadpole
).
Third, meet the funding quality of the TWP90 default level of less than 5 percent.
“The OJK has implemented mitigation measures by setting a maximum limit for economic benefits and requiring loan providers to carry out adequate credit worthiness assessments, including paying attention to
repayment capacity, debt to income ratio,
and the recipient’s funding exposure to other providers.”This arrangement is expected to encourage pindar business practices that are healthier, more sustainable, and in line with the principles of prudence and consumer protection,” said Agusman.
Launch
detikfinance
, one pattern that often appears in tadpole schemes is that the initial installment reaches up to 70 percent of the total loan.
Then the next installment dropped significantly.In some cases, initial payments are scheduled irregularly and close together, so borrowers are required to prepare funds very carefully.
For short-term borrowers for urgent needs, large initial installments often become stressful, forcing financial adjustments to be heavier than expected and increasing the risk of default on subsequent installments.
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(fby/sfr)
