People get loans for many different reasons, like financing a business ,building a home or purchasing a land. But it’s important to know what questions to ask yourself and the Sacco so you know which type of loan to choose and how it will work in your situation.Establishing a genuine need for a loan, understanding the ins and outs of the loan you choose and having a solid repayment plan are your best options for staying on top of your financial development journey.
1. Assess your finances – See if you’ve got money in any other accounts or savings and whether it would work out better to free it up until payday. It may be that the savings will be eligible for far higher interest rates if left untouched, so it could work out best to take a loan in the meantime.
2. Friends and family – Consider whether or not you want to rely on the generosity of friends and family. Think carefully about whether they can afford to lend it, the terms of repayment and whether it will affect your relationship. Often, people loan money under these circumstances and are surprised by how it works out. If you do decide to go ahead, make sure you formalise your agreement as much as you can ahead of time to protect both your interests.
3. Use your assets – It is amazing how much stuff can accumulate in a household, so consider if you have any assets to clear out which may just drum up the funds you need.
4. Re-evaluate your spending – It’s important to re-evaluate your incomings and outgoings before taking out a loan in order to see where you can save money and cut out spending, to allow you to repay your loan and even make some more savings in the future.
5. Consider your options – Research is definitely one of the most important steps before deciding whether you need to borrow or not. Look into all of the different options; for instance, instead of paying a lump sum, you may be able to pay in installments.
6. Think about affordability – The biggest mistake most debtors make is taking out a loan they cannot afford to repay. Before deciding whether or not you should borrow money, make sure you can afford the required repayments.
7. Calculate the true cost – It’s vital to calculate the true costs of repayments before taking out a loan. You need to take into consideration the loan amount, the length of the loan, the frequency of payments, the interest rates and the cost of any fees. It’s important to be completely aware of what the borrowing will cost you and only go ahead if you are still happy with it.
8. Speak the language – Make sure that you are fully aware of all of the terms and conditions before deciding to borrow money. You need to make sure that you understand every single detail before taking the plunge to borrow money to ensure you aren’t caught out by hidden charges or fines.
9. Check out your lender – If you’ve made the decision to borrow money, make sure you check that your chosen lender is legitimate before committing. Mwito Sacco is fully licensed by SASRA.
10. Apply for the loan and utilize it strictly for the intended purpose. Do not be tempted to divert loan funds to another project that you had not intended or thought about in the first place.
11. Maintain a good relationship with the your financier. Most people get a loan and never come back. Even if you are repaying your loan well, maintain contact just in case you need assistance.
Allow me to conclude by letting you know that Mwito Sacco products are diversified ,timely and most affordable in the market. Contact your true financial pillar for more assistance on 0728505800 or 0715555390