As we look into the future, the cost of living is rising very dramatically. There are many instances we face unexpected bills or expenses which put us in a bind. Yeah, that’s a easy option, borrowing or getting a loan from banks or moneylenders. Well, if you’re someone who’s worried about borrowing some money from a moneylender, here are somethings that you need to be aware off.
Things to Know Before Borrowing Money:
Money-Lender Should be Licensed:
To know whether a moneylender is licensed or you just have to check the list of licensed lenders that are available in the country. After that what you can do is go through the reviews provided by other customers about the certain moneylender. This might be a bit time consuming but in the long run, it will be beneficial for you.
Also, you need to remember that there are a few rules laid down by the government. The rules state that the lenders can only use the consumer directories or their website or the exterior or interior of their place or business to advertise about themselves. If you are getting contacted by phone calls or text messages then this lender should not be trusted as they might turn out to be scammers.
Type of Loan That You Should Choose:
Right after you have decided on the Money Lender, its time to think about the type of loan that you would want. Mostly, people go for major or minor personal loans. Major loans are those where you need to get a huge sum of money. For example, money for a wedding, etc. Minor loans are generally about taking a small amount of money that can be used to pay credit card bills etc.
After you have decided that now comes the repayment terms. Do a bit of research on that as there are different types of repayment terms. Some money lenders offer variable terms and thus you can choose accordingly.
The government has laid down some simple rules that all Money Lender need to abide by. A specified amount needs to paid to the Money Lender by the borrower if they are charged for late fees and similar kinds of issues.
The money lenders need to abide by these rules or the government can cancel their licenses. So, make sure to know all the rules and how much needs to paid and for what purposes before you take the loan. This will be beneficial for you as you will know whether you are getting cheated or not.
Well, these are the top 5 things that you need to remember before borrowing from Money Lenders. Apart from these, there are a few other points too but those are not that necessary. The most important thing is that the moneylender which you are choosing should be trustworthy and should have a good reputation.