6 things to consider before taking a personal loan

Are you dreaming of taking your family on a nice vacation? Or perhaps you’re planning a big wedding and need a little extra cash to get things going. Whatever the reason, if you need a little help with managing your finances for a short-term, a personal loan is an ideal solution to meet your financial needs.

However, taking out a personal loan is not an easy decision. There are many factors to take into consideration before you even apply for your loan. In order to help you accomplish your goals, here are the key factors to consider when taking out a bank loan:

1. Where can you get your personal loan?

When you think of where to go for your personal loan, banks are possibly the first thing that comes to mind. But it’s important to know that banks are not the only option for loans. Today you can find a number of loan providers that claim to offer quick loans. In fact, some lenders offer online loans that may seem like convenient options. However, not all these establishments are legitimate and risks should be avoided at all costs.

Central Bank registered institutions that offer financial services and financial management facilities, like HNB Finance, are your safest alternatives to obtaining a personal loan.

2. Do you meet the criteria to qualify for a personal loan?

Different loan providers require varying sets of criteria to qualify you for a personal loan. This is done to ensure you have sufficient repayment ability and to minimize the conflicts in case of non-payment or arrears in payment.

With HNB Finance, customers with a satisfactory CRIB and adequate repayment capacity that are between the ages of 24-50 are eligible for a personal loan application.

3. What’s the interest rate?

Interest rates are the amount that the financial institutions charge you on top of the money loaned. The type of loan you go for determines the interest amount you have to pay monthly. Therefore, when choosing your loan provider, it’s essential to obtain one with the low interest rates.

At HNB finance, we offer highly competitive interest rates in the market, enabling you to pay off your loan with ease.

4. Additional fees associated with the loan facility

Every loan facility will carry a different range of fees associated with it. Documentation fees, early settlement fees, valuation and lawyers’ fees and penal interest for overdue payments are some of the additional expenses you may be subjected to. Hence, it’s good to read into the fine print of your loan terms and understand the extra costs associated with your loan.

5. What are the terms of the loan?

The tenure of your loan will determine your repayment amounts as well as the amount of interest you end up having to pay over the life of the loan.
At HNB Finance, you’re offered a repayment period of up to 5 years with a range of 75,000LKR to 3,000,000LKR available for loans against personal guarantors. Over 12,000,000LKR can be achieved against loans on immovable property.

6. What are the requirements to obtain a personal loan through HNB Finance?

  • Employer’s letter of confirmation
  • Registered primary mortgage over residential property
  • Two acceptable guarantors or mortgage
  • Valuations reports and salary information

If you meet all the above criteria and have access to the required documentation, you may avail of personal loan through HNB Finance within three days of submitting your application. What’s more, HNB Finance offers a convenient doorstep service, where a marketing executive would visit you personally to collect your documentation, thereby providing a hassle-free process to attain your financial freedom. For more information, call us on 011 202 4848