I think Interest is not the only thing you pay for loans. There are other hidden costs. In fact your effort to submit the paperwork and get approval, It’s more sweat and money than you actually count. So before you apply for personal loan online , ask yourself some questions. Spend some time to debate each one of them.
Quickly let’s dive into questions should ask and answer before taking personal loan

1.How much should I borrow?
There is always a maximum amount restriction on personal loan. It’s the amount you can borrow as a personal loan. It depends on your financial standing. Arrive at a concrete figure of loan you need is very important. Your chance of getting the loan approved is dependent on it. Start with how much money you want. Don’t be tempted to have extra cash in hand just because it’s available. Say you want to change the living room furniture with your personal loan, research on what you want to buy, the cost of it and nothing more. Note when you borrow 50 thousand, you return more, remember that. So its worthwhile to be very calculating while arriving at the figure.

2.What do I need the loan for?
People often take personal loan online because it is easily available without definition of what they want to use the loan for, forgetting its a loan and you ‘ve to pay back with interest. I think personal loan normally taken to finance an emergency, such as to pay off debt or for home improvements. The lender asks for a reason. However, the decision on your application to some extent are not dependent on it. Still, be clear as to why you need the loan? Arriving at the reason would help you debate on whether you truly need it or not. Remember It’s a loan, and you have to pay more money than you’ve borrowed. Be clear with its objective.

3.what is the extra costs attached to it?
Think beyond interest rate. Interest rate is the main price you pay when you take a loan. But there are other costs attached to the loan. There are processing fees, administrative fees, penalty on early repayment of the loan etc. Understand the total cost of the loan before arriving at a decision to borrow. Plus, there is always the opportunity cost. What would you have done in that extra money you are paying as interest? Is your loan worth all of it? Think.

4.How much can I afford to repay?
The tenure of repayment for a personal loan is less than that for some other type of loans and the equated monthly installments are higher. Calculate your monthly expenses, subtract them from your monthly income – this residual is the maximum amount of money you can afford to repay as the loan installment. Remember to factor in emergencies or seasonal expenses that you may have to take care of. Never think of using all that residual income to pay off the EMIs. Best practice would be to keep the EMI figure between 60-70% of your residual income after expenses. Always leave room for the unexpected.

5.How long will you be paying the loan back?
The time space of repayment is a very important factor to consider. How long will you be paying the loan? Because you can’t take an additional loan until you pay this one off. Personal loan which offers zero percent interest rate often comes with a defined repayment tenure. It’s generally of lower duration than the other loans. Ask yourself how many years you will be paying this loan? Do you see any source of income which would help you to pay it off early? Generally, the longer the tenure, the greater the rate of interest, i.e., the cost. Answer all these questions to arrive at a calculated and conclusive decision.

6.What kind of personal loan do I need?
To know and understand your exact need is the first step to take a decision you won’t regret. There are many types of personal loans in Nigeria – wedding loan, holiday loan, loan for renovation, etc. Narrowing down the type of loan would help in getting the paperwork sorted. It would also help in understanding the legitimacy of your needs and the amount of loan you need to take. This may sound repetitive in nature as we have already talked about ‘what do you need the loan for’ earlier. This is different as it would help you to narrow down the bank or App which is offering the most competitive interest rate and conditions. Think from that perspective.Research Compare and Shop.

7.Where should I get the loan from?
There are numbers of banks, credit card companies or your own employer who would extend you a personal loan. Generally, the best terms of the loan are offered by your employer. Pick him over other sources. In case you are going to a credit card company, make sure to review the hidden costs. Shop around to pick a bank or App. Negotiate. Some may waive off the processing fees to get a customer. Don’t ignore the reviews online. Also, you can apply for personal loan online with play later. Download the app to know more.
More personal loan App:

•Paylater
•Renmoney
•Aella Credit
•Kwik Cash (Mines)
•Rosabon Finance Quick Loan
•Zedvance
•Page Financials
•FINT Loan

8.Are there any other alternatives than to take the loan?
I think it worthwhile to give it a second, third and fourth thought –ask yourself again and again Is the loan absolutely necessary? Think of ‘what if’ scenarios. What if you don’t take the loan – Is there any other alternative to finance? Think hard. What if there is another emergency, would you have room to finance it? Ask yourself these questions to know that it’s absolutely necessary to get a loan.
Ask all of these questions or debate them with your family before applying for a loan. It would help you to arrive at a calculated and conclusive decision.

SOURCE:https://okfiscal.com/8-questions-you-should-ask-and-answer-before-taking-personal-loan/

Makes sense.

Okay...


Obtaining loan from a bank or any loan-issuing organization is good but a risky venture.It's always as if there is a demon which controls loan in general.

It takes wisdom,restraint and proper management to utilize loan in the best way.


About the 'demon' thing,studies shows that 86.5% of people who took loan fails to repay it,thereby having their properties confiscated.

I may be wrong,but if there are other means you could generate capital,go for it and ditch any thought of loan obtaining.

Thanks for this information

Don’t take loan in Nigeria, you will hate it!

I can't never take a loan to do business I will be running it under pressure and duress

Buhari.....take note!

Okfiscal:


4.How much can I afford to repay?
The tenure of repayment for a personal loan is less than that for some other type of loans and the equated monthly installments are higher. Calculate your monthly expenses, subtract them from your monthly income – this residual is the maximum amount of money you can afford to repay as the loan installment. Remember to factor in emergencies or seasonal expenses that you may have to take care of. Never think of using all that residual income to pay off the EMIs. Best practice would be to keep the EMI figure between 60-70% of your residual income after expenses. Always leave room for the unexpected.

OP when writing in a public fora such as this, especially one which your readers come from varying backgrounds, it is pertinent to define your acronym first before using them in isolation.

Had to consult Google to find out what EMI means, anyways my people this is what I found out..

Equated monthly installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month, so that over a specified number of years the loan is paid off in full.

I can't never take a loan to do business I will be running it under pressure and duress

Guys I strongly advise against going for a loan aside Business and health grounds....Wetin renmoney take my eye see.. mouth nor fit talk am. A word is enough for the wise.

Don't ever take loan to start a business unless the loan is coming from a government owed bank like BOI, BOA, CBN.

Startup should stay away from loan form commercial banks.

Be warned!

If you don,t have the stomach for it and you don't make extra cash, pls don't!!!

I stopped thinking about loan the day my account officer told me, 90% of bankers don't take bank loans.

100%

Tenses:
Don't ever take loan to start a business unless the loan is coming from a government owed bank like BOI, BOA, CBN.

Startup should stay away from loan form commercial banks.

Be warned!

Ok

Do Nigerians think of these? Na to take loan and oppress people dem sabi. If the creditors come after them, na bad mouth dem go use reply them or they elope.

Loan i wont be able to pay back, better to be broke than in debt

High IQ people are not found here ba @ Martinez39?

Op, no8 is a very valid point. The first point of call should be family and friends, not the bank. If you have alternatives, no personal repayment plan...don't take the loan.

Sheriman:
I can't never take a loan to do business I will be running it under pressure be and duress

even DANGOTE takes loan.

Stay off loans!

I think if the govt can stop commercial banks from investing in treasury bills , the banks will begin to give good loans to businesses that in turn will grow the economy and increase government revenue via taxation..

Win win for everyone

Jaysleeves:
Guys I strongly advise against going for a loan aside Business and health grounds....Wetin renmoney take my eye see.. mouth nor fit talk am. A word is enough for the wise.

What was your experience bro please tell me cos access bank just gave me 17k loan i don't even know how I'm gonna pay it back

Nice thread It gives insight, not like olosho and bbnaija rubbish show..





I'm here to learn not to masturbate with Vaseline

Below is my comment in another thread. Any loan dat ask u to pay back d principal weekly or monthly is satanic. Run & don't borrow it for biz. Government soft loans/ grants better.

Why not allow me pay interest monthly & return principal in 6 or 12 months time? Folks forget loan if u love ur health. 95% of entrepreneurs/startup wouldn't survive with loan due to its repayments structure.

Thanks to God as I've now pass d stages to be looking unto satanic loan houses/people for funds. Nothing better than living a debt free life & having a heart full of peace.

Truest:
If there was love amongst family, they could come together & raise funds for dat struggling hard working brother or sister in d family & back him with prayers (better u pray urself with a sincere heart). They would rather be fighting & killing themselves with witchcraft & making contribution for burial. Nobody gathers to save dat dieing fellow in hospital bed.

All dis borrowing unfavourable money with interest from evil strangers, friends & cut throat institution will not be d concern of many if family is up & doing.

The saying dat a borrower is a slave to d lender is a biblical truth even though I was also guilty.

Explanation: you took 500k from bank or all these demonic lending house including d recent online app u are talking about. Now you are expected to return 750k total at d end of 12 months as an entrepreneur or retailer.

At the end of every month, u are to pay back
Principal =
Interest =

Total monthly payable = 62,500.

Now subtract 62,500 from the initial 500,000 and u are left with 437,500 to continue ur biz

It is called reducing balance & dat is why loan end up being a burden for businesses.

It is good for regular salary earners & those dat need emergency cash who can't wait 1-2 months for their funds to land.

Loan is not structured to favor small scale businesses due to d "reducing balance" effect on principal.

Anyways I don't know d kind of biz u do with 500k dat will earn u 100k profit monthly. Make una tell me. No betnaija & other online get quick rich scheme here. Mention real & tangible biz.

Jaysleeves:
Guys I strongly advise against going for a loan aside Business and health grounds....Wetin renmoney take my eye see.. mouth nor fit talk am. A word is enough for the wise.

Renmoney interest too much jare
I took a loan from them and paid half of the amount i got as interest.
I no go ever near their side again.

Run away from loan ! U will end up using the profit u made in settling the interest attached to the loan repayment . at the end you will end up having nothing. Talking from experience