CONSUMER LOAN, HOW TO MAKE IT YOUR GREATEST ALLY?
In such situations where we need more money, a applying for a loan can be a good solution.
These loans are called CONSUMER LOANS or PERSONAL LOANS.
Find out how to get the most out of this financing solution.
FIRST OFF, WHAT CAN YOU DO WITH A CONSUMER LOAN ?
A Consumer Loan is a loan granted to a consumer or a retail customer by a bank or other lending institution, directly or through a merchant.
This loan enables you buy almost anything … except real estate (there are other types of loans to enable you to purchase land, an apartment or a house).
Consumer Loans can be used in everyday situations : furnishing a house, buying a car, financing studies or health costs, a trip or your wedding, e.t.c.
Consumer Loans can also simply help you balance your budget during periods of unexpected or exceptional expenses. This extra cash then allows you to carry on with your normal life, while facing larger financial obligations than usual.
In a nutshell, a Consumer Loan allows you to spread out your expenses. You repay the loan in small amounts of monthly instalments instead of paying a huge amount all at once for an item. It can also help regain better financial well-being by providing you with extra cash to get you through a difficult period.
But keep in mind that the borrowed money will then have to be repaid every month for a specified period of time. Let’s read on then…
WHAT YOU SHOULD KNOW BEFORE APPLYING FOR A LOAN
Before applying for a loan or committing too quickly to a loan offered by a store or a merchant site, having this additional information will be useful. There are two main types of Consumer Loans, one linked to specific item or asset and another that does not require proof of the item or asset to be acquired.
- The Consumer Loan linked to an item or asset is designed to enable you acquire that particular item or asset: pay for a trip, car or sofa, e.t.c. The borrower must declare the reason for the loan and provide supporting documents, such as a pro-forma invoice or a purchase order. The Vehicle loan is a good example of this type of loan.
- The second type of Consumer Loan does not require the borrower to declare the reason for the loan. The Overdraft Loan is a good example of a loan that you can use as you wish, in complete freedom, and that you will have to repay under the conditions provided (amount, number of monthly repayments).
It is therefore important to properly assess your needs: How much money do I need? What is my borrowing and repayment capacity? Your Consumer Loan does not have to become a nightmare for you.
We sometimes hear that banks do not grant loans quickly and easily … What if it is for the good of the borrower?
YOUR BANK IS HERE TO OFFER YOU REASONABLE CONSUMER LOANS
Have you assessed your need for financing? Apply for a loan. Consult your bank or a known bank. This is the first piece of advice; it can save you from the scams that some retail lenders practice, and the pitfalls of loan offers that are too good to be true.
Banks have rules for granting loans. They can also give you advice to properly assess your needs or offer you better solutions that you may not have thought of.
To offer you a loan, the bank will calculate your borrowing capacity by taking into account your income, family status, expenses, debt ratio if you have outstanding loans. The bank will take into account your disposable income to determine the amount of money that can be used to pay off your loan without putting you and your family in a difficult position.
When your Consumer Loan application is approved, the bank will give you the monthly payment schedule. Before you commit by signing the contract, you will know exactly what you have committed to and for how long.
For additional security, death and disability insurance is generally provided along with the loan agreement.
WE KNOW YOU WANT TO MOVE FORWARD !
At BANK OF AFRICA, we believe that Consumer Loans can be your ally to achieve your projects and manage your budget. We do our best to meet your requests with loan solutions tailored to your needs. We look forward to meet you and offer you advice.