My WordPress Blog Thu, 30 May 2019 09:18:38 +0000 en-US hourly 1 Reasons for Interest Higher than Banks Thu, 30 May 2019 09:18:38 +0000





Fintech does provide easy access to loans. But behind that, there is a high interest that must be paid by the borrower. What is the reason for fintech interest higher than the bank?

The presence of financial companies such as Fintech is a solution for people who need additional funds quickly, as well as a frightening specter because the interest on loans is valued higher than the bank.

Whereas for loan interest matters, every fintech company already has transparent rules to determine the amount. Where the amount of Fintech loan interest must take into account the nominal to the term of the loan.

Fintech interest is higher than the bank

Fintech interest is higher than the bank

At present, interest on loans from Fintech averages 19-22% per year. This interest is claimed to be higher than bank interest which is only 18-21% per year. The difference of around 1% is considered not worth the risk faced by Fintech. Yes, the risk of fintech as a loan service company is indeed valued higher than the bank. The reasons for higher fintech interest from banks are as follows:

  1. Fintech provides access for consumers who cannot make loans through financial institutions such as banks so that high interest rates are determined to avoid the loss of money lent.
  2. Fintech consumers are consumers who can borrow unreserved money such as banking so that high interest is applied in this service.
  3. High interest is carried out as a reserve fee to reduce credit risk because after all a fintech company must maintain a smooth return to investors despite the loan default by the borrower.
  4. Not all fintech companies have credit insurance so that if a loss occurs, fintech companies must handle it themselves. Moreover, fintech loans are generally unsecured.

The advantages of Fintech from the Bank

The advantages of Fintech from the Bank


Despite having relatively high interest from the bank, the existence of fintech is still favored by the people of Indonesia. This is due to the ease and speed of the loan process offered by Fintech.

In addition, to maintain higher public trust, fintech companies are also required to be more transparent to their customers. For investors or investors, transparency makes them feel safe and trusts with the money that has been given to borrowers. As for borrowers, transparency makes them better understand the risks that arise later.

Transparency is an option for investors and borrowers before they make transactions as lenders and borrowers on the P2P Lending platform.      

The risks that arise later are shown by the fintech company so that each party accepts the risks. So, there is no reason for higher interest rates from banks!


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How to Use a Credit Card – Complete Guide Mon, 08 Apr 2019 08:34:45 +0000



The use of credit cards is becoming increasingly popular because it is practical and bring numerous benefits to the consumer.

If you do not already have a credit card, you have already been contacted by your bank to get one. If you already have, you’ve probably already received a call from your bank to review the conditions.

But do you know how to use a credit card? Let’s “trade for kids.”


Compare credit cards

What is a credit card?


What is a credit card?

Let’s start with the ABCs of credit cards so they fully understand how they work, what they do, and how to use a credit card consciously and safely, maximizing the benefits they have to provide it.

Using a credit card is a convenient, easy and flexible way of making payments that works like a small personal loan . That is, this type of card offers a ceiling, determined a priori by your bank, which you can use whenever you need without having to use your account to order.

How does a credit card work?

Imagine that you need to buy a quality television for the living room and for some reason you do not want to mess with the money you have in your checking account, choosing to use a credit card to pay for this one thousand euro investment.

First of all, you should check if your credit card has ceiling enough to be used.

Has? Perfect. Then you can use it to make your purchase.

But do you know what happens the moment you pass the credit card at the payment terminal? Simply put, it’s like you’re asking for a one-thousand euro loan to the bank, pledging to pay back within the stipulated time frame.

The money-back period can be extended, free of charge, for up to 50 days, in case the payment is made at 100%. If payment is made in installments, interest will be paid on the amount owed.

Learn more: Will you use a credit card for the first time? 5 Things you should know.

Do you know how to use a credit card?

Do you know how to use a credit card?

In practice, using a credit card is easy. Just pass it in the terminal at the time of purchase et voilà , simple and fast. What many people do not know is how to use a credit card in a safe and conscious way.

Let’s assume you bought your television in May. He used his credit card to pay the thousand euros, and that month he had already used credit for grocery shopping where he spent 100 euros. In this case, you already have a credit of 1,100 euros that you will have to pay in full.

There are two ways you can use to pay your credit card: full payment (100%) or partial payment.

Total payment (100%)

To avoid charges with interest rates, you should opt, whenever possible, for the full payment (100%) of the balance used on the card within the deadline.

Partial payment

If you do not have the availability to pay the credit card at 100% you can opt for the partial payment method. However, if you choose this method, you will have interest added on the amount owed.

In this way, you can agree with the bank a time limit and a monthly amount or percentage to pay up to cover what you spent. The vast majority of institutions facilitate this management being possible to do it simply and quickly through apps or homebanking services.

Deepen: What is the minimum credit card payment?

As a rule, and in both payment modalities, the statement of the card is issued at the end of the month, being charged on this date the percentage of the amount defined by the customer. The amount of the balance which has been settled thus becomes available for use.

Stay tuned

When joining your credit card, make sure you know all about terms and applicable interest rates so as not to be caught unawares.

How to use a credit card and what care should it take?

How to use a credit card and what care should it take?

In addition to being a convenient, safe and accepted payment method worldwide, credit cards also offer you advantages when using them, such as: exclusive discounts, cashback, point or air miles programs, as well as various free insurance (travel, personal accident, theft or fraud, online shopping protection, among others).

These advantages depend on the type of credit card you choose. Therefore, it is important that you take into consideration your profile and needs when choosing the best card for you.

For example, if you are a person who likes to travel, probably a credit card with air miles is the most appropriate choice. However, if you shop online very often, discounted credit card may be the best option.

Simulate cards with airline miles

If your credit card includes access to discount programs you can always look for stores that offer some kind of benefit to consumers who use that card to make the purchase and thus enjoy a more competitive price for your television, for example .

Find out: What types of credit cards are there?


What care should I take when using credit cards?


What care should I take when using credit cards?


It is necessary to take precautions in the use of the credit card, mainly to avoid the risk of fraud. Although almost all cards currently have EMV technology that can increase transaction security, there are a number of good practices that should not be overlooked.

Here are some tips on how to use a credit card safely:

  1. When you receive your credit card you must sign it on the back, destroy the old card and make sure you write down the code in a safe place (never next to the card itself) – or, better yet, remember it;
  2. Never lose your sight card. For example, when you go to the store to buy your LCD make sure you make the payment at the terminal in front of the employee. Making a copy of the magnetic stripe is very easy and takes a few minutes: it will not even count;
  3. Never give the complete card number, either by phone or by email, even if it is a company you trust;
  4. When shopping online , make sure you only use your card on trusted sites and make sure that the address of the store’s website starts with “https” instead of “http”. The “s” indicates that the connection is more secure.
  5. If you suspect you are being a victim of fraud , if you have lost your card or if it has been stolen , immediately report it to your bank.

Now that you’ve figured out how you can safely and conscientiously use a credit card, you can start getting the most out of your use.

In addition to security precautions, ensure that your credit card is used conscientiously to avoid accruing interest and commissions.




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Peer To Peer Lending In Indonesia Tue, 02 Apr 2019 09:27:48 +0000




Peer-to-Peer Lending, also known as P2P Lending, is one of the fastest growing financial services in Indonesia. OJK data said, the growth of the number of lenders in P2P Lending grew by around 603% and the number of borrowers was around 581%. Does this mean P2P Lending can be a new investment opportunity?

For most people, investment is a foreign thing. They tend to prefer to save rather than invest because they are afraid of the risks faced. In fact, investment is one way to make financial conditions in the future more directed and guaranteed.

Actually, you can determine what investment is suitable. This can be seen from how much profit is obtained and how much the risk is. Especially nowadays it is very easy to find out more information about this investment. One of them, regarding investment in P2P Lending.

What is P2P Lending?

What is P2P Lending?

Peer to Peer Lending (P2P Lending) is a new way of providing loans, where between lenders and borrowers are met in an online platform. Peer to Peer Lending (P2P Lending) allows everyone to give loans or apply for loans without the need for difficult conditions and long processes, as has been the case with traditional financial institutions.

Basically, this P2P Lending system is a new investment opportunity for investors who want to allocate their money into investments in the form of short-term cash loans, and within a certain period they (investors) will get a reward for the money they invest. Not only that, the P2P Lending system can also make people’s lives better by providing access to financial institutions, so that people can borrow money according to what they need in an easy way.

Thus, there is no gap or underserved segment, namely the funding / credit gap for the community or Micro, Small and Medium Enterprises (MSMEs). According to the OJK, in Indonesia, segments that are not served by traditional financial institutions such as banks are Rp900 trillion per year. This reflects the real need in the community to get loans in an easy and not difficult way.

How does it work?

How does it work?

P2P Lending system is done with an online platform so that it is managed transparently and efficiently, where lenders and borrowers are connected directly in a container or marketplace. In a P2P Lending system, there are two parties, lenders and borrowers, so the P2P Lending system works in two different ways.

As a lender, the first thing you have to do is register to create an account as an investor. Then fill in your account balance by transfer. After that, manage your money by determining the type of loan that you want to include in some loan products provided by the platform. The borrower also receives funds from you, according to the time period chosen, you also get rewards for the funds lent.

As a borrower, you can simply fill out the application form online and include your KTP number. Then if the loan is received, the loan application will be entered into the marketplace provided so that all lenders can see your submission. If approved, you will receive funds directly to the account already registered in the marketplace.

Admittedly, P2P Lending is the right tool for those of you who want to get a personal loan quickly. As an investor, P2P Lending is a means to allocate funds as needed.


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