Lending apps: 6 critical factors you must consider before you borrow

People borrow for a number of reasons but findings show that not all reasons are genuine. If you must borrow from lending apps or loan platforms, however reputable, these are the 6 critical factors you must consider before applying;

Lending apps: 6 critical factors you must consider before you borrow

1. The need:

The need to borrow is as important as the money itself. The questions you should ask yourself is can it wait till I get paid? Is the money needed for a need or a want? These and many other questions to ask so that you don’t blame yourself later.

2. The repayment:

Do not collect loan from lending apps when you know you can’t repay on the due date of the loan. Loan institutions are not charity companies so they will not be happy with you if you fail to repay as at when due.

3. The interest rate:

From observations, it is clear that most borrowers don’t even bother to check the interest rate of the lending app they are about to collect money from. Some interest rates are too high and such must be avoided by all means in order not to pay interest that is as high as the main funds borrowed.

4. The Service fee:

Service fee most times is where most of these fraudulent lending apps and loan sharks hide under. They will put a very low interest rate and put a service fee that is almost 50% of what you’re borrowing. Some even put zero inteerst but insert service or security fees as much as the loan you are borrowing. When the service fee is too high, don’t take the loan. Look elsewhere.

5. The Terms:

If you’re a regular borrower and you have never read the loan terms before clicking “Apply for loan”, then that is not good enough. Borrowing money becomes a contract the moment you click on “Agree”. At least before you commit yourself, try and know the terms and have a idea of what you’re getting into. If you can’t abide, it’s best you let them be.

6. The Agreement:

Most of the lending apps will require you click ;’I agree’ to allow them have access to your contacts details, your phone numbers, your messages, whatsapp, text and emails and many other vital personal and confidential data and information. Though local laws and hosting channels require these lending platforms to observe privacy rules of their customers and borrowers, most time they violate this and breach their customers data and send defamatory messages to their contact list when there is a repayment disagreement. Think about this possibility before you click “I agree” to allowing a lending app access your contact and vital information.

These six points are little but they are more than enough to guide you when taking the path of online quick loans. To make it easier for Nigerians, they can join the QLA Business Club where their interest is protected and they have the assurances that no one will harass them before they pay back whatever they borrow.