Maricor Bunal
Much like any other entrepreneurs, salary loan lenders expect ROI for their investment. Although others follow high standards, religious even, such as the AAIIB loans, there are other providers whose aim is only to trap borrowers into a never ending cycle of monthly payments.
It is our mission here at Loansolutions PH to guide the Filipino people’s choice of quick cash solution.
For that reason, we’ll share with you the LACK strategy, which you should bear in mind when looking for a salary loan provider:
L- Look more closely at the TAR not the APR
The Total Amount Repayable (TAR) definitely matters more than the Annual Percentage Rate (APR). APR may be manipulated by the lender, reducing it to entice borrowers to extend the loan term. However, the TAR is the total cost the borrower needs to pay. TAR is computed by adding up the actual loaned amount plus the add-on and interest rate, which means it’s practical to go for a deal with lower TAR than APR.
A- Avoid extending your tenure for too long
Longer tenure means you’ll have to pay more for the interest rate, meaning the lender would earn more from you. So as much as possible keep the tenor short, yet manageable.
C- Consider the add-ons and other services that may incur you additional charges
Lenders may also trick you to sign up to add-ons you don’t necessary need. For instance, decide whether you need to pay for the collection fees and protection insurance. Providers also impose penalties on both early and late repayments as one of the ways to ensure you’ll stick to your initially agreed TAR.
K- Keep it realistic
Salary loan is a tricky financing option to get by, with high risk of incurring debts when the move isn’t well-planned. So prior to application, borrowers should plan how much to borrow and the term. Use loan calculators to come up with realistic estimates. Or better yet, get in touch with one of our loan consultants here at Loansolutions.ph to facilitate your application. Our agents will help you compare the rates. You can also apply via our 3-Step Online Application Process to make things easy.
The BPS has been making ways to regulate the granting of quick cash loans in the country. And that’s a way to maintain a stable domestic financial status. Now your job as a borrower is to ensure you’re making the right choice when taking a loan to avoid compromising yourself. By applying the LACK strategy, you’ll be more aware of the traps ill-intentioned lenders set up and know the ways to secure the money you direly need.
