When approaching a licensed moneylender, there are various things that you need to consider. Before taking a loan and signing up a contract take in mind the following:
- Look for other options. Before deciding to take a loan from a legal money lender, you may seek other available alternatives. You may look for financial assistance from Government agencies. Reach out to them to know more about their financial assistance.
- Your legal obligations. Remember that when signing up for a loan contract, you need to follow all the rules and regulations stipulated within it.
- Your Financial Obligations. You need to look to the whole picture when taking up a loan. Asses yourself if you can able to abide by the terms of the contract by taking in mind your income. Always take into consideration your current financial status. Also, late payments can be a financial burden to you and your family.
- Full Understanding of the contract. Moneylenders are required by the law to fully explain the terms of a loan in the language that you understand. You must also be provided with a copy of the contract. Make sure that you comprehend with all the information written in the Note of Contract of your loan, especially the following: schedule of repayment, interest rates, and fees.
- Agreement to contractual terms that involve your real estate property. You have to read carefully before signing for a contractual term of a moneylender that includes lodging a caveat on the sales proceeds of your real estate property when you failed to pay the loan. Take into consideration that with that agreement you cannot sell your property unless you have fully repaid the lender. Also, if it ends up using your property as a repayment, you don’t have any portion from the sale proceeds.
- Different Moneylenders and their terms. Never stop looking for just a single moneylender. There are over a hundred of moneylenders existing, so all you need to do is compare. Check their terms and conditions and choose the most favourable one for you. Remember that it must suit your current financial needs.