Fiji Times Saturday 09 September 2017 IS it worth taking a loan that charges 30 per cent interest rate?
Daniel urgently required $11,000 to carry out repair works on his house. Since he was in desperate need for money, Daniel visited a financial service provider in the Central Division to apply for an unsecured loan. In his desperation, he did not see it important to compare the interest rates, loan repayments fees and charges with other financial institutions to get the low cost loan. Given this, the financial institution Daniel had opted for, promptly prepared his loan contract and assured him that the money was just a signature away.
In his excitement to receive the money, Daniel overlooked the total amount he had to repay the bank. He failed to read the terms and conditions and to ask simple questions related to interest rate and other fees and charges. The loans officer also did not bother to explain the key aspects of the agreement.
After two months, Daniel needed additional cash, hence, he revisited the financial institution and applied for an additional loan of $2000 which was consolidated to his initial loan amount. This time around he decided to read the loan document properly to understand the loan agreement. Read more…
