WHY IT IS IMPORTANT TO LEARN HOW TO CALCULATE INTEREST RATE ON LOANS

Debt is good when put into the right use . As a financial literacy practitioner I spend a lot of time training youths in money issues and I should point out that there is no better satisfaction when  a youth or client opens up to financial guidance. There is no perfect person and we all commit financial sins from time to time only that we conceal them😀 .

The issue that I want to discuss today that concerns society is the interest rate charged on loans. Ugandans borrow from different sources such as banks, savings and Credit Cooperative Society(saccos) and loan sharks. In financial literacy we advocate for a client to take time and understand the terms and conditions of the loan. Part of the main problem in society is that people do not take time to read these terms and conditions. They need the money as soon as yesterday. A loan has a cost attached to it and that is in form of interest charged. A lender is obligated to earn interest on money lent. The key issue for the borrower is to sit with the lender and understand the interest charged and other loan terms. This is  a key mark of  a financially literate customer and one who will not struggle when repaying the loan.


As one borrows from any institution he or she should take time to understand the interest rate and other loan terms .


Phillip Kiryowa

Finance and Leadership Coach

+25675261 5916

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