Mobile Apps provide an easy way of getting a loan through your phone. But before taking a loan, there are many things you should know. Here are 7 of the most important things to know before taking a loan from mobile loan apps;
Interest on loan
You should always know the interest you will pay on the loan before taking one.You might take a loan of Ksh 10,000 and end up paying Ksh20, 000.The interest should not exceed 30%.
Repayment period
The repayment period should be long enough to help you look for the money and repay. It doesn’t make sense to be given 2 days to repay a loan of Ksh10, 000 which you took to start a business with.
Terms of payment
The terms of payment should be clear, there should be no hidden charges or harassment of family members. There are loan apps which go to the extent of calling family members, your pastor and even your in-laws to tell them that you took a loan and refused to pay. Such apps should be avoided by all means.
Whether the app is approved
You should be sure that the app is approved before taking a loan from them. If it’s not approved, you might lose your money and property incase you don’t repay. When the apps are approved, you can easily sue them and CBK will take action on them.
Loan limits
You should also consider the limit of the loan to take—the more the loan the better.Apps with low limit are not good because they may not meet your financial needs. Such low limits also attract high interest rates.
Purpose of the loan
Loan apps are very addictive, don’t take a loan if it’s not intended to solve an emergency. The apps are meant to help you get money to pay emergency bills or rescue you from a situation. They also help to boost business. If your purpose it to take a loan to bet with or to buy drugs, please avoid the loans. Once you get addicted to the Apps, you will find it hard to stop.
Default payment terms
You should also know the punishment you will get if you don’t repay your loan. Some will blacklist you in CRB ,others will call all your contact list names to inform them about the loan.
