FSA Restricts ‘Tadpole’ Payment Schemes on Online Loans
Financial Services Authority (FSA) restricts ‘tadpole’ payment schemes (tadpole) on online loans aka pine nuts.
Scheme tadpole Pinjol is a model where the installments are very large at the start and then get smaller in the following period.
This name is taken from the word ‘tadpole’ which means tadpole, describing the shape of the large head, small body and tapered tail, and comes in various variations.
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FSA Director of supervision of Banks, Non-Bank Financial Institutions, Payment System Providers, and Digital Financial Innovation, Bambang Indonesia, said this restriction was carried out to protect consumers.
“We have found a practice where online loans have a payment scheme that is initially large and then gets smaller. This is what we call a tadpole scheme,” he said in a press conference,Monday (11/12).
bambang explained that this scheme is considered detrimental to consumers as it can create a burden on borrowers in the early stages of the loan.
He added that the FSA will continue to monitor the growth of online loans and take action against any practices that harm consumers.
The FSA also encourages consumers to be careful in choosing online loans and to ensure that they understand the terms and conditions of the loan before borrowing.
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