Obtaining a personal loan is something that has evolved greatly over the years. Particularly with the internet convenience boom. Customers no longer need to wait in long queues or go through piles of paperwork.to avail a loan. Technology and the rise of fintech brands have paved the way for loans to be dispersed almost instantly. The technological convenience of applying for a loan must never regarded as always safe. Negligence while applying for a personal loan can result in landing us in a tight spot. For instance, it is extremely important to know the full cost of the personal loan and understand the terms and conditions that come with it.
The list of things to crosscheck includess ROI, processing fee, and other miscellaneous fees such as legal and documentation charges.
DISCLOSURE WHEN APPLYING FOR A PERSONAL LOAN
All lenders are required by the Reserve Bank of South Africa to produce explicit disclosure on their borrowing cost. Otherwise called annual percentage rate (APR). This being said if a lender is not providing this standard disclosure. Then you should abstain from applying for a loan from that lender . Having said that, let’s take a look at some key points to bear in mind when applying for a personal loan.
Lookout for compliance red flags
The question of registration becomes quite relevant. As mentioned earlier, with the boom of the Internet and the digital era. Applying for a loan is no longer the same. You can apply for loans on smartphone interface services for which you would traditionally approach a brick-and-mortar service point. Today, we have app-based online loans and while this is remarkable progress, it also calls for your full caution.
Now, it’s important to make it a point to verify that the entity you are borrowing from is an NCR-registered lender, be it a bank or a private lender. Without this precautionary procedure, there is no safeguarding of your rights as a borrower against the lender who might resort to shady and unscrupulous money-lending practices.
How to Research a Lender Before Applying
Once you’re in the market for a loan, whether you’re looking for a car loan, a simple personal loan, or a mortgage to purchase your first home.One thing remains the same. the more research you do the better the result.
There are plenty of lenders to choose from, but not all of them may necessarily be best suited for your particular situation.Different lenders work with different types of borrowers. They also offer different types of loan products, which is why a little due diligence on your part is always a good idea before you settle for one specific lender.
Here are some tips to help you narrow down your search for the right lender
Decide on your wants and needs: When it comes to choosing the right lender to work with. You first need to decide what feature you want from your loan. Not all lenders offer all types of loans or features. So deciding what you want and also what you can live without. Will help you narrow down the lenders you’re looking at.
Try a loan ninja comparison : A loan ninja comparison is a great way to see what options are available to you. You can filter based on your unique needs and directly compare two or more lenders.
Check out the lender’s website: Most reputable lenders will have a live website that details all the loan options they offer and the features of each. This is a great place to gather all the information you need to make your final decision.
Look for online reviews: These days, you can find reviews online on just about everything, including lenders. Whether they’re Google reviews or those found on review websites, it should be easy to find out what a lender is like based on what previous clients have to say.