Business

10 Precautions To Consider Before Taking A Loan

Taking a loan for the youths can be a good and a bad risk in equal measure depending on the next step taken after acquiring the loan. Despite the easy access to loans the youths have been currently exposed to doesn’t mean one should take the advantage of the unsuspecting loners. In fact the loners will follow you even onto your death trap.

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However, courtesy of Youth Village Kenya, the young lonees can now cherish some free advice on how to handle loan related monies and items.

  1. Loans can be secured and unsecured, secured loans are the one tied to your personal belongings such as a house or land, failing to pay will lead to auctioning for the repayment. While unsecured loans are not tied to your property and failure to pay could result to blacklisting in banks, free interest loans or even any offers that could leave you salivating in banks and even bank linked shops.
  2. You need to window shop around so as to get exposed to the best deals around you when it comes to loans. The shorter the time to pay, the less interest you will pay. And the more you borrow, the lesser the interest you will pay
  3. When comparing deals, look at the Annual Percentage Rates – APR of interest charged. Don’t pay attention to the monthly advertisement rates from the shops, these are usually lower than the annual rate and can mislead you. Walk away if they are not clear.
  4. You will have to pay a penalty if you want to repay your loan in full, because loans are usually repaid in monthly instalments.
  5. If you find yourself unable to repay your loan speak it out with your lender, lenders are always willing to listen
  6. Never borrow what is to much beyond your limits, it is well understood that an emergency can always arise and stretch you further.
  7. Staying financially comfortable is the best way to abstain from the unsuspecting rogue lenders. Who are out to exploit young victims
  8. Always check the clauses and ensure that they are in writing, never get carried away by their slogans, they are always adverts and can change any moment.
  9. Save some little cash, for a long time this will amount to a good amount that could help you to deal with such emergencies.
  10. Never run away from the loan, it can result to a catastrophe in your entire lifespan.

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