Beware of Consumption-Focused Online Lending Trends During Ramadan, Watch Out for FOMO Risk
The Financial Services Authority (OJK) has recorded a consistent trend of increased online lending (pinjol) distribution during Ramadan in two consecutive years, namely 2024 and 2025.
This phenomenon has drawn attention because fund disbursement continues to be dominated by consumer spending needs among the public.
Dr Ranti Wiliasih, Lecturer in Islamic Economics at IPB University, explained that the surge in online lending during the holy month tends to be triggered by psychological and social factors.
According to her, fear of missing out (FOMO), the desire to follow trends, and the tendency to imitate others’ lifestyles have become the primary drivers for the public to access instant loans.
“The majority of online loans are used for consumer needs, not productive purposes, and therefore have the potential to create financial problems in the future,” said Ranti in her statement.
She emphasised that loans for consumer purposes should be avoided from the outset. Loans are only recommended for genuinely urgent conditions, such as medical needs, disasters, or emergencies.
According to Ranti, the convenience offered by online lending often becomes a double-edged sword. Loans initially considered as a quick solution can actually transform into a source of new problems when borrowers cannot repay obligations on time due to other more pressing needs.
“Problems worsen when loan interest increases, causing debt to balloon. Unethical debt collection processes, such as defamation, dissemination of personal information, and intimidation, can occur,” she added.
This risk not only impacts financial conditions but can also damage borrowers’ mental health due to pressure from unethical collection processes.
Facing social pressure during Ramadan, the public is reminded to remain steadfast in their own financial capacity. Ranti emphasised that there is no need to force a lifestyle that exceeds one’s means merely for social validation.
“Do not be embarrassed if our lifestyle differs from others. Instead, one should feel embarrassed about taking on debt for unimportant things just to appear impressive,” she said.
For those already trapped in online lending, she recommends immediately seeking alternative interest-free borrowing options with longer repayment periods.
This bridging loan approach is expected to ease the burden and provide temporary peace of mind so that focus on financial recovery can be pursued.
Finally, she called on the public to cultivate a humble lifestyle in accordance with their capacity. With healthy finances, the heart will become more at ease and more readily grateful.