Financial Literacy is Needed to Reduce Cases of Illegal Online Loans

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To solve this problem, if people are well educated about financial literacy, especially about the problem of instant cultivation, the number of illegal online loan users will decrease.

Denpasar, Bali (ANTARA) – Educating people about financial literacy is seen as crucial to addressing the prevalence of cases of illegal online lending, said Udayana University sociologist Wahyu Budi Nugroho.

“To solve this problem, if people are well educated in financial literacy, especially the problem of instant cultivation, the number of illegal online loan users will decrease,” Nugroho told ANTARA on Sunday evening.

The sociologist has highlighted several aspects that will also reduce the number of such cases, including making people more prosperous economically.

If various conventional and legal banking institutions make lending terms easier for people, then they would prefer to choose these services because they pose a much lower risk, according to Nugroho.

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“The sociologist assumes that whatever people need will come out on their own. Conversely, whatever people don’t need will go away on their own,” Nugroho explained.

In addition, these cases of illegal online loans are not about age or social status, but rather the issue of instant culture in our modern age, he stressed.

Modern life has offered various effective goods that have led to the emergence of instant culture despite the fact that any instant often carries several risks, Nugroho noted.

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“Before taking out a loan online, it is important to first check whether their services are legal. In addition, lenders must understand and comply with the regulations of the OJK (The Financial Services Authority),” he said. he noted.

“Therefore, both sides understand their respective rights and obligations,” he said.

Previously, the Speaker of the House of Representatives (DPR RI), Puan Maharani, expressed his support for the strict action of the national police against illegal online lending practices, while stressing that such practices are detrimental to the community.

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