TALA’s Loans Your Way program has made it easier for the Philippines, especially the unbanked, to access credit when they need it most. However, obtaining microcredit is only the beginning, as it is always up to the borrower to be responsible for it and to use it well. For many people, especially those unfamiliar with finances, planning for the future is a daunting task. That’s why it’s important to keep these 5 things in mind before getting a loan online.
- Have a well-defined reason for the loan – To begin, start by determining if a loan is even necessary for your current situation and if you can repay it. Some loans are for personal, business, or emergency use, and having a clear idea of where you’ll be spending the money, from borrowing to repaying, will make it easier for you to decide if you’re going to get a microloan. . TALA’s Loans Your Way is designed to make it easy to borrow money in any situation with its speed, ease of use and flexible repayment terms.
- Make a SMART financial plan – When setting a financial goal, remember to make it specific, measurable, achievable, relevant and time-bound (SMART), as it allows you to easily visualize what you will do with the microloan. The SMART framework is an easy-to-use breakdown of the ideas you need to think about to properly plan your finances. Knowing the exact result you want to achieve (Specific), being able to set financial milestones (Measurable), knowing if it can realistically be achieved (Achievable), knowing how important it is to you ( Relevant) and know when you will reach the goal (Timebound), your financial plan is SMART.
- Check interest rates, fees and transparency – An interest rate is an amount that the bank or financial institution charges in addition to the money lent. Interest rates make up the bulk of loans, and different financial institutions will have different rates that will also charge hidden fees such as origination fees and late fees. Be sure to use a lender that pays all interest and fees up front, so you know what you’re obligated to pay. TALA has no surprise fees and complies with the Truth in Lending Act (Republic Act No. 3765).
- Schedule your repayment date – One of the biggest worries about getting any loan is being able to repay it. By properly planning the repayment date by aligning it with when you will receive your cash flow, such as a regular salary, you avoid ending up with too many obligations at once. With TALA’s Loans Your Way, you can align your repayment date with a time when you know you have money coming your way, like your paycheck.
- Only look for trusted lenders – One last thing to always consider is the credibility of the lender. Check reviews from other customers in places like Google Play and other review sites and look for lenders that are officially licensed or part of large business organizations. TALA is a finance company duly licensed and authorized by the SEC to operate an online lending platform and also a member of FinTech Alliance.ph. It also enjoys great trust among its customers as it maintains a refund rate of over 95%.
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