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5 Questions To Consider When Applying For A Loan

Loans • by Loanfinder • 16 May 2018

5 KEY QUESTIONS TO CONSIDER WHEN APPLYING FOR A PERSONAL LOAN

Whether you’re planning your fairytale wedding, wanting to renovate an old bathroom or just needing access to emergency funds to replace a burst geyser, a personal loan could offer you the exact financial solution you need. Taking out a personal loan can be a big decision to make and while LoanFinder offers you a seamless service that alleviates much of the hassle of tedious loan applications, there are a few important things that you may want to consider when applying for a personal loan.

1.  Do you meet the basic requirements to apply?

  • Are you older than 18 years of age?
  • Are you a South African citizen?
  • Do you have a steady, monthly income of at least R1 500 per month?
  • Do you have a South African bank account?

2.  Are you applying for the most suitable loan?

Think about what you want to use the loan funds for. There are lots of different types of loans in the market so it’s important that your needs profile is suitably matched to the most appropriate type of loan, and the most suitable lender.  A correct match could potentially save you from unnecessary costs and interest during your loan period.

3.  Are you aware of your credit score?

Whenever you apply for a loan, the potential lender will review your credit score and assess all aspects of your recent credit history and financial behaviour.  It is important to undertake a regular credit check to identify anything that may lead to a loan rejection. Regular access to your Credit Report will allow you the opportunity to correct your financial behaviour and improve your standing amongst potential lenders.

4.  Can you find the best interest rates?

 As a loan-finding company, LoanFinder cannot guarantee interest rates or loan amounts. However, we do offer you a guaranteed service in assisting you to find the best loan online. An interest rate is an amount that the bank or financial institution charges on top of the money loaned. Ideally, you want to find a personal loan that can offer you the lowest possible interest rate so you can focus on paying off the money that you borrowed, rather than extra interest. The type of loan may also determine the interest rate offered.  This highlights the need for your financial profile to be suitably matched to the most appropriate loan type and money lender - a key component of the LoanFinder customer experience.

5.  How do you plan to pay off the loan?

This seems like an obvious point but it is important to plan out how you intend to repay the debt. The length of your loan period will determine your repayment amounts and the amount of interest you end up paying over the life of the loan.

Will you be paying weekly, fortnightly or monthly? Do you plan to pay it off sooner than the term? These are key factors to ensure that you avoid any unnecessary costs and difficulties. LoanFinder clients have access to telephonic financial counseling which can assist with budgeting and planning for your loan repayment.

Armed with these few consideration, you can now go and Apply Online for that much-needed loan with confidence.