Four Big Mistakes to Avoid with Personal Loans
posted on Mar 20, 2020 | 412 likes
Before You Sign That Loan Offer, Read This
Personal loans are a great way to get unpremeditated expenses sorted on time. It can save you from unnecessary embarrassments or even help you to secure business deals before they expire.
Although there are other sources that people can turn to when they encounter expenses that aren't clear cut – sources like personal savings, family and friends, associations and corporations – many of us will turn to personal loans.
With so much flexibility in how they can be used, personal loans are becoming a popular means for financing purchases, paying bills (like school fees, house rent, vacation, car bills, etc), or covering any form of unexpected expenses.
Page Financials is happy to be at the forefront, championing convenient access to financial services in Nigeria for people who need quick access to money. Over the past 6 years, we’ve helped thousands or Nigerians access loans of between N200k to N5million in record time.
In a nutshell, Page has helped people connect the dots when it’s Time To Pay bills.
However, as a leader in the industry, it is also our obligation to teach our customers financial literacy, so that they can make informed decisions when it comes to taking loans and making general financial decisions.
As appealing as personal loans are, there are some common missteps that end up hurting borrowers’ financial situations more than helping.
Here are four of those big mistakes to avoid when taking out a personal loan and how you can prevent them.
Rushing Into The Wrong Loan
Rushing into anything almost never turns out right, you need to take time to carefully research the provider that is offering you a loan and be familiar with their operations before you sign the offer.
Whenever you can, research quality of service, transparency, speed of delivery as well as how the loan and the repayment sit well with the problem you are looking at solving.
You can ask your self some critical questions like, “after taking this loan, what will be the status of this problem?” Will it be solved? Will I need more money?
Also, some lenders charge you a nonrefundable application fee to process your application, so knowing exactly where you're going to apply will save you money in the long run.
Fortunately, at Page Financials we do not charge our customers any processing fee, not any upfront fee, so you can go ahead and apply without any hidden consequences, when the offer is approved and generated for you, you will have the opportunity to read through the contract and make sure that they align with your current realities before you sign.
And if they don’t you are free as a bird, you can walk away, no strings attached.
Although the contract is as explicit as possible, written in plain English, we advise customers who may not understand them to seek assistance from a learned person, say a lawyer.
Overlooking How The Interest Is Calculated
Once you have signed the terms of the loan which includes the interest rate and the monthly deductions you can expect each month, you are bound by those.
The Onus is on you to understand how the interest on your loan is calculated and to make sure that there are no conflicts of figures in the monthly collections.
Some lenders calculate interest per annum, others per month, while others calculate daily. If you find it difficult to understand how the interest on your loan offer is calculated you can reach your account officer – which is normally mentioned in the offer letter, or simply reach out to the provider’s customer service channels to ask for clarification.
Not Being Truthful About Your Income And Expenditure
Personal loan providers can do all their financial checks and background studies to determine your credit worthiness, but only you can truly determine whether you can repay your loan or not.
For example, if you have other debts that are not captured in your bank transactions the credit bureau may not detect that, or maybe you are owing your landlord or other people and won’t be able to conveniently repay your loan while servicing those other obligations, this can have a tremendous negative impact on your credit history and can even lead to bad loan.
Always tell yourself the truth before you take a loan. If you have doubts of your ability to repay or have any hidden debts, taking a loan that is not structured to repay the first one might be a wrong move.
Not Reading The Terms And Conditions
Every website has a page where it displays its terms and conditions. This page tells you what you consent to by using the website. It’s the same for a personal loan provider.
The terms and conditions stipulate the mode of operations of the lender and how they are poised to respond to issues.
In this detailed blog post, we have taken time to break down some of the strange words that normally confuse or put people off in the terms and conditions page/document.
At Page Financials, our terms and conditions are clearly written in plain English to make sure it’s easy to understand by our customers, you can access our terms and conditions directly by clicking here.
The goal is to make sure that you have an avid knowledge of your rights as a customer as it relates to that lender, and that you understand what the organization has rights to do on your behalf too.
Make sure you are comfortable with the terms before you sign.
Do not ever assume that the terms will always be in the favour of the customer or business, go through to understand exactly what is obtainable.
Personal loans can be the ultimate way out when you need access to quick loans to solve emergency expenses. Once you meet the criteria of the lender, you normally get the funds within minutes or hours.
You can confidently pursue your dreams and complete goals without relying on help from family and friends – which may not always be there.
At Page Financials, the process of getting a loan is even simpler, it happens on line and you can be done in minutes, of approved, you can get an offer of up to N5 million in less than 3 hours.
However, to enjoy the money you that you want to borrow and use it for the purpose it is intended, take time to do what we have talked about in this post.
Do not rush into any loan that comes your way but make sure you understand how the operator works, understand how your interest is calculated or ask the lender for clarification, you need to tell yourself the truth about your ability to repay and finally go through the terms and conditions page to know what you are bound by.
We are happy to take your applications. Visit www.pagefinancials.com/registration to apply for between N200k to N5 million which you can repay within 12 months.
Our customer service agents are available to attend to any questions you have. Call 016317243 or send an email to firstname.lastname@example.org for assistance.