Getting a loan: Things to consider
There are several things to consider when taking out a loan:
- How much do you need?
- How will you repay the loan? Do you have a stable income? Do you have any records to support this?
- Is the financing institution a credible one? What’s it’s reputation?
- Does the financing institution have specific loan products that suit your needs e.g products for women, youth, farmers etc?
- If you earn your income seasonally, can your loan repayments be structured accordingly?
- How much is the interest rate?
- What other hidden charges are there?
- What type of collateral does the financial institution require? Collateral is something of value that you own such as a car or title deed, which the bank can take if you fail to repay the loan.
- Can you use your mobile phone to pay back the loan?
- Will you be charged if you pay the loan earlier than the due date?
- Can your loan payment be delayed if you’re unable to pay it on time?
- Will the financial institution penalize you if you do not pay back your loan in time?