Evi saw the ad on Facebook. Quick, instant loans without collateral. No fuss, all online. “It got me curious, and so I clicked,” the 40-year-old homemaker said. She applied for an IDR 1 million (US$70) loan to help a friend, she claimed. The money was transferred to her account, but not in full—only IDR 700,000—as the remaining 30% went to the platform as fees. It was due in seven days.
With interest, she owed IDR 1.2 million (US$83) to the platform. But because she didn’t have the money, she applied for new loans from two other platforms. “We were digging holes to cover another hole,” she said.