11/03/2023
LOAN TIPS.(Secured Loans - Logbook, Title Deed, Payslip)
If you must take a loan against an asset, be careful.
1.Be sure you surely need the loan.
2.Read through the contents of the Loan Forms, avoid the 'Sign here, sign here language....' Read and understand it word by word. DO NOT SIGN WHAT YOU'VE NOT READ.
3. Ask for a copy of a breakdown of the repayment plan, time frame, monthly repayment & the total accumulative amount repayable at the end. Yes, interests are acceptable but not exploitative ones.
4. Loans against an asset are secured loans and the interest rates have to be lower than other unsecured loans. (Risk Return Trade Off) Take time, research, weigh options and go for cheaper, affordable loans.
5. Be disciplined to repay your loan in good time, consistently, mdogomdogo(You don't have to wait for end month, ukipata kitu, lipa, punguza deni)
6. As you repay, do your math on outstanding balances, be sure your figures and the figures of the lender match. Raise alarm in case of any signs of hidden charges.
7. Communicate. If in a situation and you feel like you'll delay or default on repayment of a monthly installment, call or visit the lender on advance to find a solution; waiver, extension or readjustment of the repayment plan. These lenders are humans and they understand sometimes. Try keep a good credit repayment record with the lender.
8. Avoid exploitative lenders (Shylocks).
9. Go to established & reputable Microfinance Institutions, Banks with proper flexible & affordable loan structures.
10. Have a guarantor, trustee or lawyer.
Hilcah Group Ltd.
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