Low Interest Online Loans For MSME Businesses

Loans do come in various types. Lately, online available and many also provide offline loans. However, of all loan providers in Indonesia, there are several loan providers that are legal and also illegal.


Many residents are sometimes entangled in deeper debt because of the presence of the illegal online loan in question. Today, we will talk about loans and the different types. 

Difference between Legal and Illegal Online Loans

To find out the difference between legal and illegal online loans, know the following points:

  • Legal loan providers are providers that have obtained a permit from the OJK and pay attention to aspects of consumer protection. But with illegal online loans, they don't have permission from the OJK
  • Interest from legal online loans is transparent and the borrower knows the amount of interest that applies. The opposite applies to illegal online loans, because they do not convey the applicable interest
  • The address for a legal online loan location has a definite and clear address, and has been checked by the OJK. As for illegal online loans, they do not have a definite and clear office address. Even to avoid law enforcement, there are illegal online loans that have offices abroad.
  • Legal online lending institutions are required to become members of the Indonesian Fintech Funding Association (AFPI). A loan provider institution that is not a member of the AFPI can be said to be an illegal loan
  • Legal and illegal online loan collection methods are very different from one another. Legal loans have a certification for loan collection carried out by AFPI. Illegal loans choose violent means when collecting loans.
  • Legal online loans have a clear board of directors and have at least 1 year of experience in finance. However, for illegal loans, they do not have any loan experience standards
  • Legal loans must have operated based on the provisions that have been determined by the OJK. Meanwhile, illegal loans do not operate in accordance with the available provisions.

The Difference Between Online Loans & Bank Loans

Although providing loan services to people in need, online and bank loans have several differences. The differences are as follows:

  • Online and bank loan processes have different times. Online loans don't really take a long time to be disbursed, while loans via banks take a long time, even months.
  • The files needed when making a loan online or through a bank are the same, but the bank does some verification to determine if the file is the original file or not
  • Unlike banks that require only two parties involved (the bank and the borrower), online loans involve the borrower as well as the investor who has the capital to finance
  • The security of the two is also different. The bank has verified its security because every bank has been registered with the OJK. While online loans, as discussed earlier, have both legal and illegal loans. It's good when you are careful.

Online Loans For Business 

It is undeniable that technology is developing rapidly and many things have turned digital in order to keep up with developments happening in the world. Finance Technology is one of the results produced in the development of this technology, by providing money loans online.

Online loans are not only helpful for personal needs, but online loans can help business development in Indonesia now.

Given the rapid development of technology where everything must be obtained immediately, speed is a key. With a business loan that has a fast process and practical terms, business people who need a loan can receive their capital quickly for smooth business continuity.

In addition to being fast and practical, online loans play a role in providing convenience and security for business people. With the covid-19 pandemic still going on, online loans provide a platform to borrow and borrow without having to go to the bank to do it. Online loans provide a safe platform for transactions that are ready to serve you anywhere and anytime, without having to pay attention to operational time.

The Newbie is an online loan provider that has obtained a permit from the OJK and is also a member of the AFPI.Danamas is your solution in the business you do. We serve easy, fast and practical loans. Immediately register yourself with  The Newbie to start building your dream business. 

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