7 Illegal Online Loan Risks, Here’s What You Need to Know!

Noer Huda By Noer Huda
6 Min Read
7 Risiko Pinjol Ilegal, Ini Bahayanya yang Perlu Anda Tahu!
7 Risiko Pinjol Ilegal, Ini Bahayanya yang Perlu Anda Tahu!

jlk – Online loans have become a popular choice for many people in need of quick and hassle-free funds. However, amidst the proliferation of online loan services, caution is necessary because not all providers can be trusted. There are several illegal online lenders operating without proper authorization, posing serious risks to their borrowers.

Recognizing illegal online lenders and understanding the risks is crucial before deciding to apply for a loan. Below is a review of the characteristics of illegal online lenders and the risks associated with them!

Characteristics of Illegal Online Lenders

Illegal online lenders are providers of online loan services that are not registered and supervised by the Financial Services Authority (OJK).

They often offer loans with excessively easy processes, disregarding the necessary requirements. Here are some characteristics of illegal online lenders to be wary of:

- Advertisement -
  1. Lack of official website: Illegal online lenders often rely solely on chat applications or social media to offer loans, without an official website providing comprehensive information about the company and its services.
  2. Not registered with OJK: They lack official permission from the OJK to operate as online loan service providers. You can check the list of registered lenders with the OJK through its official website or the OJK Way application.
  3. Lack of transparency: Illegal online lenders tend not to provide clear explanations of the fees charged to borrowers, such as interest, penalties, and administrative fees. They also do not provide valid loan agreements.
  4. No mobile application: Illegal online lenders do not have official mobile applications that borrowers can download and use to apply for and repay loans.
  5. Lack of clear identity: Information about the company’s identity, such as name, address, phone number, and email, is often unavailable or unclear. They also often use names similar to official lenders to deceive potential borrowers.

Risks of Illegal Online Lenders

Applying for a loan from illegal online lenders can pose serious risks, both financially and psychologically. Some of these risks include:

  1. High-interest rates: Illegal online lenders often impose high-interest rates, sometimes reaching 1% per day. This can cause your debt to escalate rapidly if you fail to repay the loan on time.
  2. Large late payment penalties: If you fail to repay the loan on time, illegal online lenders will impose large late payment penalties. These penalties continue to increase with the length of the delay, potentially trapping you in prolonged debt.
  3. Risk of blacklisting: Illegal online lenders often request personal data, and if you fail to repay the loan, this data can be misused to blacklist you, making it difficult to obtain loans in the future.
  4. Debt collector threats: Illegal online lenders often use aggressive and inhumane debt collection methods, including threats and physical violence against you or your family.
  5. High administrative fees: They often charge high administrative fees to borrowers, reducing the amount of funds received by borrowers from the total loan.
  6. Short loan tenors: Illegal online lenders often offer very short loan tenors, making it difficult for borrowers to repay the loan on time.
  7. Lack of OJK protection: Illegal online lenders do not have protection from the OJK, making it difficult for borrowers to lodge complaints or disputes.

How to Avoid Illegal Online Lenders

To avoid the risks posed by illegal online lenders, you can take the following steps:

  1. Check the list of official lenders registered with OJK before applying for an online loan.
  2. Read the terms and conditions carefully before agreeing to a loan.
  3. Be cautious when providing personal data and ask for proof that the data will be stored and used safely.
  4. Avoid being tempted by loans without requirements and choose reputable and transparent lenders.
  5. Choose lenders with official mobile applications for ease of application and loan repayment.


Illegal online lenders can pose serious risks to borrowers. Therefore, it is important to be vigilant and careful when choosing an online loan service provider. Always ensure that you choose lenders registered with and supervised by the OJK and have a good reputation.

Do not fall into the trap of illegal online lenders that can harm you financially and emotionally. We hope this article is useful and helps you make informed decisions regarding online loans!

Share This Article