• Before approaching a moneylender, it is advisable to consider other alternatives, such as financial assistance schemes of the government. You may contact the government institutions to inquire about the scheme.
• It is advisable to take the loan details from multiple moneylenders to get the most favorable terms and commit to borrowing the loan only if you are satisfied with the terms and conditions.
• You should explore your abilities to abide by the contractual terms, considering the monthly income earned and financial obligation.
• The borrowed amount should fulfill your immediate obligations and you should borrow the amount that you are able to pay. If you are unable to fulfill the contract requirements, the additional charges such as late payment fees and other charges will be a financial burden on you.
• The law requires moneylenders to explain the terms of the loan contract in a language you understand and to provide a copy of the loan contract.
• Consider taking financial advice from others while agreeing to a contractual term which empowers moneylender to lodge a caveat on the sale proceeds of a real estate property in case of default payment. Because when the caveat is lodged, you will not be able to sell it without first repaying the moneylender in full.
• If there are any issues related to making the monthly repayment for the borrowed amount, contact directly with the lender for an extended payment plan.