The Actual Situation Should Be Considered Before Confirming Loan Subscription

You are an entrepreneur. Do you intend to apply for business loans to increase your capital? Then, before the acceptance column of the summary, whether to conduct a fact finding Of course, you should.

I know the news that you approved the loan is exciting. However, my humble suggestion is to get familiar with the loan terms and conditions of the quotation before signing the acceptance column. From my research and work experience on this subject, it is obvious that this is because the borrower delayed the loan, sometimes after the loan facility was restructured/rescheduled, there was no actual investigation, and there was a lack of understanding of the loan terms and their impact. As with all other contracts, the loan contract is binding upon signature by both parties. This means that the terms and conditions of the loan will determine, which is actually to grant rights and obligations to the party with rights and/or obligations respectively.

The following are the key points to be noted when evaluating loans:

1. The loan interest rate of your preferred lender;

2. Applicable interest rates and loan fees;

3. Punitive interest rate applicable when the loan or interest due for repayment is not repaid before maturity;

4. One-time and recurring costs; and

5. Make sure that the commercial risks you invest in the loan will generate profits and repay the loan in a timely manner.

In addition, please note that interest rates and loan fees are usually negotiable. Therefore, efforts should be made to make progress in the negotiations. However, it is worth noting that the lending institution may not want to dominate the loan arrangement and change its position on the applicable interest rate and loan costs. Similarly, it is also a fact that loan institutions constantly seek for feasible commercial venture capital in order to make profits. Therefore, as a lender, your business is to make your lender believe that you, as a businessman with good credit, have feasible business risks that can generate income in a short term. If you can confirm this fact, it is likely to reduce the loan fees and charges.

After the loan is granted, the deduction amount of the loan account shall be maintained, the principal and interest payable when due shall be repaid, and the appropriate interest rate shall be applied to the loan. You can always observe that different interest rates or fees apply to loans. In order to approve the bill, please promptly file a complaint with the loan institution. If the lending institutions adhere to this unfair practice, the Consumer Protection Department(CBN) of the Bank of Nigeria is open to complaints from bank regulators and other relevant financial institutions.

High interest rates and arbitrary charges adopted by loan institutions have been identified as the main reasons why unsuspecting borrowers fail to perform their loan arrangements. This unfair practice means that the borrower’s financial obligations are subject to fraudulent upward review without his consent. The heartrending aspect of this funny behavior is that the borrower without proper advice will be improperly forced to perform the contract by the lending institution.

Please try to be realistic when evaluating this loan next time. If you think the legal terms and figures in the quotation are beyond your understanding, please hire a lawyer to advise you on the legal meaning of the loan terms and conditions. We hope to hire an accountant or accountant to advise you on these figures and their corresponding currency meanings. I humbly believe that it is more in your interest to hire necessary professional services at a lower cost than to confiscate the collateral used for debt repayment through the nose or loan securitization.

Have you also considered the mental and psychological trauma caused by the debtor being labeled?