15 Important Things to Consider Before Taking a Loan – 2022

Many individuals resort to obtaining loans from banks to meet their urgent financial needs or to achieve future goals (buying a new car – buying an apartment – marriage – education) or financing productive projects.

If you are thinking of obtaining a new loan in 2021, a “bank” will offer you 15 tips you should follow to avoid getting into trouble with payment, especially if it’s your first time with banks.
1- Before considering applying for a loan, you must first define your goals for the loan (covering emergency financial needs – buying a new car – financing a productive project – buying an apartment – finishing a house – buying durable goods).

2- Borrowing only the amount you need and covering your requirements and needs, not more so that the debt burden does not increase on you and it becomes difficult for you to pay later.

3- It is necessary to make sure that you will repay the loan according to the time frame specified for it, and that you are able to pay the loan installments on time, so that your credit rating is not affected.

4- Be sure to know the administrative fees and all expenses related to the loan, as all these details are important and must be known in advance to avoid any problem when paying.

5- Be sure to compare the financing programs at the banks and know the interest rates prevailing in the banks, so that you can get a loan that suits your needs in terms of value, interest rate, repayment period, terms and expenses, etc.

6- Follow up on the latest financing offers with banks so that you can benefit from them, as many banks announce from time to time the availability of loans (without administrative fees – without a minimum salary – with reduced interest).

7- Ask for as much information as you need, and be fully aware of the terms and conditions related to the loan from the beginning and before signing any contracts or agreements with the bank.

8- It is important to determine the method in which the installment will be deducted and to set a payment date in proportion to the date of disbursing your salary, and to avoid being late for the payment date to avoid paying a late fine.
9- Separate the periodic dues (installments) of the loan from your other monthly expenses since the beginning of the month.

10- You should request a payment schedule from the bank and keep it carefully, as you may need to refer to it from time to time, as this schedule will help you keep track of the amount you are originally paying with interest each month.

11- You should ask about the possibility of paying the loan in full and the fees needed to implement it, in order to make sure that these conditions suit you, if you ever want to pay the loan quickly.

13- You must make sure that you understand all the terms and conditions of the loan correctly, and you should pay attention to some of the terms and conditions, including “postponement of the installment”, the time frame for processing and implementing this feature, and the number of times to benefit from it, as well as “closing a loan” or “settlement” Early”, which is an option where you can close or settle your existing personal loan, by paying the remaining outstanding amount from your own money, or from another bank.

14- In the event that you obtain a loan, it is preferable to make sure that the loan you obtained will be placed in assets that will grow in the future, which will guarantee you future wealth and a better life, and not in the purchase of things whose value will decrease later or perish.

15- The total value of your loan installments should not exceed 50% of your net income, according to the limits set by the Central Bank in this regard.

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