Important things you need to be aware of before taking a loan in Kenya

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Unless you come from a very well-off family (or you’re involved in any Kenyan Financial Scandal), you’ve most probably found yourself in a financial fix .

In this economy especially, it’s hard to fend for ourselves, and for a moment we consider seeking other quick and easy solutions and sometimes they turn out to be not so legal (refer to previous statement #ahem). In today’s society, getting a loan is as easy as ever as the rise of technology has enabled people to get that quick loan by downloading the loan apps like Tala or Branch or even apply for a bank loan through Mobile banking.

Often however, we don’t even realize the issues that arise from taking the loan, before actually taking the loan.

Here are the few things to consider before taking a loan:

1.What kind of a loan is it?

There are different types of loans;person loans,business loans,student loans and mortgages.You should be sure of what kind of loan and gather all  the information needed about the type of loan you’d like to take.

2.Interest rate

Before deciding on what loan to take,you should have scouted on loans with a better interest rate that you can work with.

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Source: fsdkenya.org

 

3.Length of the loan taken

Usually there is a time frame that a person is expected to pay the loan by. This has to be considered so that you can be able to plan beforehand.

Source: Forsmartphone
4.Current financial situation

Often, you find that you don’t really even need a loan, you can cut some certain costs to achieve your goal.

Source: Oportun

Before borrowing.make sure you won’t be overstretching your limits.Also, monitor your spending and your pay back so that you can not incur more expenses in the end.

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