Five tips when securing loans
Start by determining whether a loan is necessary for your current situation and if you can pay it back
TALA’s Loans Your Way has made it easier for people in the Philippines, especially the unbanked, to get access to credit when they need it the most.
However, getting the microloan is only the beginning, as it’s still up to the borrower to be responsible for it and use it well. To many people, especially those who aren’t well-versed in finances, it’s a daunting task to plan for the future. That’s why it’s essential to keep these five things in mind before getting an online loan.
1. Have a well-defined reason for the loan — start by determining whether a loan is necessary for your current situation and if you can pay it back. Some loans are for personal, business, or emergency use, and having a clear idea of where you’ll spend the money, from borrowing to repaying it, will make it easier for you to decide if you’ll get a microloan. TALA’s Loans Your Way makes it easy to borrow money for any situation due to its speed, ease of use, and flexible repayment terms.
2. Make a SMART financial plan — when setting a financial goal, remember to make it Specific, Measurable, Attainable, Relevant and Timebound (SMART), as it allows you to visualize what you’ll do with the microloan easily. The SMART framework is an easy-to-use breakdown of the ideas you must think of to plan your finances properly.
3. Check interest rates, fees, and transparency — an interest rate is an amount the bank or financial institution charges on top of the money loaned. Interest rates are a significant part of the loans, and different financial institutions will have different rates and charge hidden fees such as origination fees and late fees.
4. Plan your repayment date — one of the biggest worries about getting any loan is being able to pay it back. Properly planning the repayment date by aligning it with when you’ll get your cash flow, like a regular salary, makes it, so you don’t get stuck with too many obligations at once. With TALA’s Loans Your Way, you can align your repayment date to when you know you have money, such as your salary.
5. Seek trusted lenders only — one last thing to consider is the lender’s credibility. Check for feedback from other customers in places such as Google Play and other review sites and look for lenders that are officially licensed or part of major trade organizations.
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