Planning on getting your first microloan? TALA recommends these 5 things to keep in mind before setting off on your journey to financial freedom!
TALA’s Loans Your Way has made it easier for people in the Philippines, especially the unbanked, to get access to credit when they need it the most. However, getting the microloan is only the beginning, as its still up to the borrower to be responsible with it and make good use of it. To many people, especially to those who aren’t well-versed in finances, it’s a daunting task to plan for the future. That’s why it’s important to keep these 5 things in mind before getting an online loan.
- Have a well-defined reason for the loan – To begin, start by determining whether a loan is even necessary for your current situation and if you can pay it back. Some loans are for personal, business, or emergency use, and having a clear idea of where you’ll spend the money, from borrowing to repaying it, will make it easier for you to decide if you’ll get a microloan. TALA’s Loans Your Way is made to make it easy to borrow money for any situation due to its speed, ease of use, and flexible repayment terms.
- Make a SMART financial plan – When setting a financial goal, remember to make it Specific, Measurable, Attainable, Relevant, and Timebound (SMART), as it allows you to easily visualize what you’ll do with the microloan. The SMART framework is an easy-to-use breakdown of the ideas you must think of to properly plan your finances. If you know the exact result you want to get (Specific), be able to set the financial milestones (Measurable), know if it can be realistically achieved (Attainable), know how important it is to you (Relevant), and know when you’ll meet the goal (Timebound), your financial plan is SMART.
- Check interest rates, fees, and transparency – An interest rate is an amount that the bank or financial institution charges on top of the money loaned. Interest rates are major part of the loans, and different financial institutions will have different rates also charge hidden fees such as origination fees and late fees. Be sure to use a lender who provides all of the interest and fees up front, so you know what you are obligated to repay. TALA has no surprise fees and is compliant with the Truth in Lending Act (Republic Act No. 3765).
- Plan your repayment date – One of the biggest worries about getting any kind of loan is being able to pay it back. Properly planning the repayment date by aligning it with when you’ll get your cash flow, like a regular salary, makes it so you don’t get stuck with too many obligations at once. With TALA’s Loans Your Way, you can align your repayment date to a time when you know you have money coming in such as your salary.
- Seek trusted lenders only – One last thing to always consider is the credibility of the lender. Check for feedback from other customers in places such as on Google Play and other review sites and look for lenders that are officially licensed or part of major trade organizations. TALA is a duly licensed financing company and is authorized by the SEC to operate an online lending platform and also a member of FinTech Alliance.ph. It’s also highly trusted among its customers as it maintains a 95%+ repayment rate.