Before you enter into any agreement with the licensed moneylender, be sure to take note of the following points:
How Much Are You Intending To Borrow: Be prudent and take a look at your current financial situation (monthly income and financial obligations). Do this by accessing your ability to repay the loan amount. Then, decide how much you’ll borrow. It’s always best to borrow within your means.
Interest Rates: When it comes to taking out a personal loan, everyone wants the lowest interest rates. As of 2015, the maximum interest rate that moneylenders can charge is 4%. Ensure that you are not being charged more than this.
Application Fees: Familiarise yourself with the various fees that a moneylender can charge you for.
Repayment Schedule: Don’t get caught up in the instant loan that you’ll be receiving and forget about your repayment schedule. Be realistic and note the repayment schedule that you’ll have to adhere to. Some loans require a payment every month, or every fortnightly.
Discern Between Advertisements And Reality: Oftentimes, advertising material for an instant loan does not paint the whole picture. Hence, it is best to check with your loan provider on the terms and conditions of the instant loan you’re interested in.
Licensing: Any moneylender who is legitimately providing loans will have a license. In addition, they will subject themselves to regular audits by the right auditing bodies.