In today’s digital age, everything seems so easy to do to meet life’s needs. Likewise, when it comes to capital, where previously it was very difficult for people to obtain loans due to complicated administrative procedures, now obtaining loans has become easier and faster. One thing that some people consider easier is the availability of loan services through digital-based applications, popularly known as “loans.” online (pinjol). Pinjol hadir dengan menawarkan syarat pinjaman yang mudah, cepat, dan tentunya tingkat bunga yang rendah, Tak heran jika pinjol dianggap masyarakat sebagai solusi yang menggiurkan untuk mengatasi permasalahan terkait dana atau permodalan tanpa memperhitungkan risiko yang tersembunyi.
The online lending (pinjol) trend has become popular in recent years. In fact, statistics published on the official website of the Financial Services Authority (OJK) show that in December 2022, 62% of peer-to-peer lending (P2P) accounts were held by customers aged 19-34. This means that Gen Z and Millennials have more debt than other generations. This is driven by the technological advancements mastered by Gen Z and Millennials, as well as the profile of both generations as productive age groups with jobs and incomes.
Unfortunately, this technological advancement hasn’t been matched by increased financial literacy. This leaves this generation vulnerable to unscrupulous online lenders. They employ methods like simple administrative processes and low initial interest rates, even mimicking legitimate online lenders’ names and faking the OJK logo to trick unsuspecting victims, making them easily trustworthy, as it’s difficult to distinguish between legitimate and illegal lenders.
In response to these facts, a number of lecturers and students from the Actuarial Science Study Program, Faculty of Mathematics and Natural Sciences, University of Indonesia (FMIPA UI) held a community service activity through a workshop entitled “Loan Interest Education for Improving Financial Literacy” for teachers and students of SMAN 4 Kota Depok, to provide financial-based insights on the importance of carefully assessing the risks of online loans before deciding to get involved.
“This event provides a platform for participants to understand the importance of carefully evaluating loan offers before making a decision by improving financial literacy. We dedicate this workshop to raising awareness of the importance of financial literacy among teachers and students,” said Arman Haqqi Anna Zili, S.Si., M.Si., team leader.
A total of 48 participants consisting of teachers and students were involved in the activity held directly at SMAN 4, Depok, on Saturday (15/7/2023). They were given education related to calculating interest rates, payment amounts, and loan periods using formulas in the Microsoft Excel application by facilitators who are lecturers from the Actuarial Science study program, namely Dr. Fevi Novkaniza, S.Si., M.Si., Dr. Dian Lestari, D.E.A., Dr. rer. nat. Hendri Murfi, S.Si., M.Kom., Dr. Dra. Yekti Widyaningsih, M.Si., Mila Novita, S.Si., M.Si., Suci Fratama Sari, S.Si., M.Si., Sindy Devila, S.Si., M.Si., and Dra. Ida Fithriani, M.Si..
Meanwhile, the workshop material was delivered by Rahmat Al Kafi, S.Si., M.Si. In his presentation, he explained how to identify the characteristics of fraudulent schemes and traps perpetrated by online lenders. These characteristics can be identified by the interest rates offered by online lenders. According to him, legal online lenders must meet the requirements and conditions stipulated by the Financial Services Authority (OJK) and are guaranteed to be licensed and supervised by the OJK.
“The interest rate on online loans must be in accordance with the OJK’s permits. If it exceeds the requirements, the legality of the loan must be questioned,” Rahmat said.
Next, he explained the types of loan interest with examples such as simple interest and compound interest, complete with calculation examples, as well as an understanding of the effective interest rate, nominal interest rate, and illustrations.
Other material presented included annuities, including the definition, types, and examples. The material was presented in several real-life case studies to assist participants. workshop in understanding the materials more deeply.
“One example case studied here is when a debtor borrows funds from a specific loan provider. The facilitator team helps participants calculate the monthly installments the debtor needs to pay to the provider using the PMT function in Excel. Furthermore, in another example case, we also introduce the NPER function in Excel, which can help participants calculate the ideal loan term,” said Rahmat.
Participants were also educated on how to thoroughly read and understand loan terms and conditions. To hone their analytical skills and deepen their understanding of the potential dangers of online loans, the team also provided real-life case studies demonstrating the detrimental impacts of high-interest online loans, particularly when repayment is due.
“This activity marks a step forward in efforts to increase financial awareness among students and teachers. It is hoped that more young people and academics will be able to distinguish between investment offers and financial services, avoid the trap of high-interest loans, and be smart in making financial decisions so they can manage their finances effectively,” he added.
