Emok’s Bank Debt is Getting Tighter, Here’s What IPB University’s Family Expert Says
For residents of West Java, the term Emok may be familiar, which is a way of sitting for women. The phenomenon of Bank Emok is now being discussed, which is a loan service provider in West Java that is made to customers in groups and sits ‘Emok’ in a circle.
Professor of the Department of Family and Consumer Sciences (IKK), Faculty of Human Ecology (Fema) IPB University, Prof Euis Sunarti, also responded to the rise of Bank Emok. According to her, the Bank Emok loan system, which targets families directly, has been around for a long time in West Java.
“Bank Emok loans are intended for business capital loans, but in practice are also used for other family emergency needs, especially for school children and sick fees,” said Prof Euis.
The IPB University Family Expert explains that Emok Bank services are used because of family economic pressures. Among other things, it is shown by the smaller income compared to basic needs, and the absence of savings.
On the other hand, social support such as from extended family and neighbors is also very limited. These conditions force people to borrow funds from Bank Emok.
“With easy terms and conditions, Bank Emok is often a shortcut to get emergency funds that are quickly disbursed, without understanding the heavy loan interest charged,” said Prof Euis. In fact, not a few families see Bank Emok as a family savior.
In the research conducted by Prof Euis, there is actually potential to help families who are already in debt from Bank Emok through various institutions authorized to manage finances from the community. However, the limited number of funding sources makes this difficult to implement optimally.
“The potential to help families at the lower level actually exists, but it is still difficult to realize because the sources of funds used, such as infaq, sodaqoh and other funds are limited. Meanwhile, there are many people in need and it is not possible to reach all of them,” she said.
To the families, Prof Euis advised the importance of having financial management skills and insisting on saving even if it is as small as possible, because if collected it will still relieve when there is an emergency need. Likewise, families must be careful in prioritizing their needs and not easily borrow from Bank Emok.
“Organize the needs that are prioritized first. If you are forced to borrow, you must know the limit of your ability to pay in installments. Do not let debt installments exceed the ability to pay, which is the allowance of income that is possible to pay debts. Do not let the installment bills pile up and prolong debt,” concluded Prof Euis. (IAAS/NYS).
