Don’t Get Trapped by Pinjol, IPB University Lecturer: Adjust Your Expenses to Your Financial Capability
Eid al-Fitr, commonly known as Eid, is often perceived as a time of festivity. This leads many people to overspend, covering everything from essential needs and new clothes to giving gifts to relatives.
As a result, many end up resorting to online loans (pinjol) to cover financial shortfalls. Online loans are often chosen because they are seen as more private and easily accessible.
According to Dr Ranti Wiliasih, a lecturer in Sharia Economics at IPB University, this phenomenon is driven by FOMO(fear of missing out), the desire to follow trends, and the tendency to imitate other people’s lifestyles.
She emphasized that online loans are often used for consumptive, rather than productive needs, which increases the risk of repayment difficulties. “Consumptive loans should be avoided unless in urgent situations such as medical emergencies, disasters, or other crises.”
Pinjol which was thought to solve the problem, becomes the cause of the problem when we cannot pay back on time because there are other things that are more urgent.
“The problem worsens when loan interest rates rise, causing debt to snowball. Moreover, unethical debt collection practices such as defamation, the spread of personal information, and harassment can occur,” she added.
People can use the THR received to meet the needs of Eid and for people who cannot afford it, they can use the zakat fitrah received.
“If zakat fitrah or THR is unavailable, it is better to seek social assistance or borrow from trusted relatives or friends who have financial flexibility,” she advised.
She also reminded the importance of adjusting expenses to one’s financial capacity. “Do not be ashamed if your lifestyle is different from others. What is truly shameful is going into debt for unnecessary things just to look cool,” she said.
For those already caught in online loan traps, Ranti suggested finding interest-free loans with longer repayment terms to cover the existing debt, allowing for a more manageable repayment process.
“These bridging loans can help ease the financial burden and provide temporary relief, as being trapped in online loans can be extremely stressful and detrimental to mental health,” she explained.
Most importantly, Ranti encouraged people to live within their means, as this is the key to maintaining financial stability and peace of mind. Only with peace of mind can we truly be grateful to Allah SWT,” she concluded. (IAAS/HPH)
