Online Loan Debt Automatically Cleared After 90 Days: Myth or Fact?

Jakarta, CNBC Indonesia - There is much conflicting information circulating in society regarding online loans (pinjol), one of which concerns the rumour that debts will automatically be cancelled after 90 days. Is this true?

In fact, pinjol debts have no time limit. This is stipulated in Otoritas Jasa Keuangan (OJK) Regulation No. 10/POJK/POJK.05/2022, which clarifies that principal payments overdue or interest more than 90 days fall into the non-performing category or TWP 90.

This status does not erase the debt. Customers must still settle their loan obligations, while providers can pursue legal channels to resolve non-performing credit issues.

Customers who fail to pay will also be reported in the OJK’s Sistem Layanan Informasi Keuangan (SLIK). Consequently, they will find it difficult to apply for loans at any financial institutions in the future.

Loan interest will continue to accrue. As a note, OJK regulations state that legal interest for consumer pinjol is 0.4% per day for tenors under 30 days, while productive loan interest is 12-24%.

However, financial service providers are obliged to conduct collections in accordance with societal norms and regulatory provisions, as outlined in OJK Regulation No. 22/2023, Article 62.

That regulation states that collections must be carried out at the borrower’s residence or domicile. The timing is also regulated to only Monday through Saturday, excluding national holidays, from 08:00 to 20:00 local time.

Collections can be conducted outside these provisions, but this requires prior consent from the consumer.

Consumers can request restructuring from financial institutions if they are unable to pay. However, the final decision on such requests lies with the financial company.

OJK emphasises that it will not protect naughty consumers, namely those with bad intent in credit payments.

“But rather than being pursued, it’s better to be proactive yourself if there are obligations that cannot yet be fulfilled,” said Friderica Widyasari Dewi when she was still serving as the Executive Head of Supervision of Financial Services Business Actors’ Behaviour, Education, and Consumer Protection at OJK some time ago.