WHY IT IS IMPORTANT TO READ TERMS AND CONDITIONS

 A certain youth was desperate to pay the remaining school fees balance . Since he was in a desperate situation he went to a loan shark and borrowed funds without reading the terms and conditions of the loan. In the end he lost his laptop. We are living in a society where the demand for instant loans is high. Loans are very critical for the development of businesses and improving our social economic lives. However as financial literacy trainers it is our duty to educate the nation about the important principles of responsible borrowing.

First of all a financial institution lends customer funds to capable borrowers. However it is important for the borrower to carefully study the terms and conditions such as the loan tenure, the collateral required, the interest rate, the loan processing fees. I have observed that customers who have benefitted from bank loans are the ones who take time to build a relationship with the bank. Banking is a service and it is relationship based. Customers are advised to be proactive in seeking the professional services of banks and as professionals we are trained to listen carefully to the needs of a customer and attend to them.

By failing to pay adequate attention to the terms and conditions of a loan, a customer is bound to make costly financial mistakes and this results into a bad loan.

HOW TO MAKE GOOD USE OF A LOAN

1. Have a clear purpose why you are borrowing

2.Research about the financial institution

3.Ask as many questions as possible about the loan

4. Never lie to a financial institution

5.Pay promptly

6.Save as you earn

7.Attend financial literacy trainings

8.Live with in your means

A loan is good when one pays attention to the terms and conditions. Where one borrows also matters. Read the terms and conditions of the loan carefully or ask the credit officer to explain the details.

Phillip Kiryowa

Personal Finance Coach

Advanced Empowerment Link

+256752615916

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