Expenses are increasing at a disproportionate rate with income; as a result, prices of most basic commodities are going up. Individuals and families can get quality amount of relief when providing basic necessities for the home through consumer loans.
By a consumer loan, we refer to secured or unsecured loan with fixed terms issued to a customer by a bank or financing company that may be used for any purpose. But it’s typically tied to the purchase of specific items. Unsecured loans are issued based on trustworthiness of the borrower, while secured loans are collateralized.
Consumer loans is one means of escape when all else appears not to be forthcoming. Going to a bank for a consumer loan will only yield a secured loan because many banks do not have the capacity for such risk. There are however various packages that you can leverage with conditions attached. They may also want you to answer some personal questions to will help them analyze your credit worthiness. The loan if it is eventually granted will have an interest rate the bank will charge.
A financing company however gives you unsecured loan that are more flexible, faster with higher interest rates. Where a bank may take days to weeks to finally consider you, a credit company will only take 2 to 5 days. You won’t also need collateral or an account to be eligible. Although, there are some services that will require that you are banked – not with the credit company but with a commercial bank. Like banks, your personal details including a reliable means of identification will be required. Questions about your spending habits are also considered important to verify your level of risk.
Like banks, credit companies have different innovative services for various categories of customers. There are services for families, salaried workers, students and individuals. One Credit, one of the major financing companies in Nigeria, offers their customers services such as Pay Later that caters for everyone and anyone. You can borrow for as a low as N10, 000 and pay back in a month’s time. The access the service you only need to log in with your Facebook page and have a bank account. It is suitable for students looking for money to pay for books and other education materials. There is also a product for salaried workers which allow them to borrow as much as N40, 000 upward and pay back for as long as possible.
Although interest rates vary for many credit companies, they are naturally higher than the bank rates. This is because the money the former loans to people comes from the latter at an interest rate as well. Notwithstanding, rates can be reviewed if it is a returning customer.
What is important is in times of emergency you know where to turn to.
Frank Eleanya
