{Guest Post} Tips for finding the best loan offer for your needs

Today’s guest post is written by Lianda Dadlana. 

 

Whether you need to cover an emergency, consolidate debt, finance your home improvements or make a large purchase, a personal loan can be a saving grace when the need arises.

 

But with the need for loans in South Africa increasing, so many lenders are offering deals at a very competitive rate. This can make it hard to decide on where you should apply for a loan because it’s available everywhere.

 

However, when you need to get a personal loan, always go to a reputable registered credit provider; an establishment which offers manageable fixed monthly instalments.

 

Before shopping around for a loan, you need to prepare yourself by doing the following:

 

1. Check your credit score.
2. Have an idea of what your loan amount needs to be.
3. Find out what the necessary documents are.
4. Do your research and make sure you understand financial jargon.
5. Decide whether you need a 12 or 72-month term loan.

 

Once you have an idea of everything, the next step is to find the best loan offer on the market. Honestly speaking, there is no point in going out to find the best deal, without knowing what will ensure you the best deal. Even though lenders are willing to give their customers loans, it isn’t an easy process. You need to ensure that you make your application look appealing, helping you to get selected for your deal. So, now that, that is out of the way, read further on how you can find the most suitable loan for your needs.

Where to start looking for personal loans

Just because you are desperate to get selected for a loan does not mean you should take the first offer that arrives. Instead, you should look for several offers before applying for a personal loan. Here are some resources you can use to find the best deal:

 

• Referrals: this can be a great method to help find the right lender for your needs. So, ask your friends and family which lenders offer really good deals with manageable interest and monthly repayment terms. Working with a referral is always the better alternative because you can get an honest review from someone you know and trust. The person can also give you tips, so you know what to be aware of when applying for credit. Don’t solely rely on others; trust your instincts and whether the chosen lender has exactly what you’re looking for.
• Consider your current bank: this may seem obvious, but many people forget to consider their banks for a personal loan. Choosing your bank can make the process easier, as they already have all your details, such as your bank accounts, making it easier to access your money because it’s the same bank.
• Online: the internet has made everything easier; now, you can view a lender’s website and apply online. Since you’re only looking, you can simply visit their website to understand what they’re selling. Online, you can find the lenders website where you can see the products they have, their terms and conditions, interest rate, fees and more. Some lenders will also have informative blogs on their website that can also help give you a clear picture of what they need from you and what they can offer you.

Know what important factors you need to look out for

Loans are a big deal and it’s important to know everything before you tie yourself down. Loan repayments can last up to six years depending on how much you take, and your agreement. So, it’s important to know exactly what you’re getting yourself into before signing anything.

 

Here are a few things you need to consider:

Interest rates

The interest rate is one of the most important things you need to factor in when getting a loan. Your interest rate determines how much you’re going to have to pay over the years. So, the goal is to make sure you get a low-interest rate, because that way, you won’t have to pay more than what you got. A helpful way to get a low-interest rate is by having a good credit score.

 

Financial service providers will conduct a credit check and take a look at your credit history. A good credit score shows lenders your reliability and how you handle your finances. So, if it’s good, then you won’t have to have a high-interest loan rate.

Find out about the fees

Although not many personal loans have additional fees, it is important to find out beforehand if there are any. That way, you can be prepared should the need arise. For example, find out what the initiation fee and monthly admin fee is before you say yes to any agreement. This is where you can compare loans and see what’s best for you and your budget.

Ask how much a lender is willing to give and what the repayment term is

You might know how much money you need, but the credit provider still has the last say. So, find out how much the lender is willing to give you and how long their repayment terms are. Many lenders now offer terms from 12 months to 84-months, so take note of that. Remember that, the longer the term, the more interest you pay, so, try and stick to a short repayment term to avoid the interest.

This post was sponsored by WesBank. 

 

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