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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?

 

SOURCE: i shamba



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