Whilst Loans can help us to address our immediate needs, it is important to remember that there is an obligation to repay the loan amount as at when due.

Before taking a loan, it is important to check that one’s finances can cope with the repayments when due – your income, your expenditure, other financial responsibilities.

MoniCenta gives you the facility to compare loans and repayment terms from multiple lenders.
One way to manage your monthly repayment is to take a loan over a longer period.

Reasons for Non-Repayment

Whilst most borrowers pay back their loans when due, this could sometimes be challenged for reasons such as:

1. Borrowing more than one can afford to repay


2. Errors in financial planning


3. Adverse change in circumstances


4. Change in employment status e.g., loss of a job

Consequences of not repaying on time

1. Your credit score is negatively affected, limiting your ability to access loans in the future


2. Lenders may offer you loans at a higher interest rate


3. Lenders can access your money across any bank in the country


4. Lender can lien securities used to guarantee the loan


5. Your action may restrict the amount of loans made available to other borrowers by lenders


6. Lenders may increase their loan interest rates as they pass on the cost of defaulters

What to do if you cannot meet up with your loan repayment:

1. Contact your lender immediately to discuss the situation – they may be able to offer you a deferment, forbearance, or alternative repayment plan.


2. Seek the assistance of a Financial Advisor/ Debt Counsellor on how to approach the situation


3. If you have multiple loans, pay the loans with the highest interest rates or the most severe consequences for default, such as secured loans. This can help you avoid defaulting on the loan that can have severe consequences on your financial future.


4. Review your budget and identify areas where you can cut back to free up funds to put towards loan payments. Consider reducing your discretionary expenses, such as eating out, entertainment, and subscription services.

Our customer experience team at MoniCenta loans are always eager to listen to your questions or suggestions and are ready to assist you as much as possible. Signuptoday to experience premium customer service.

Conclusion

It is important to ensure that you can repay any loan facility before committing yourself. Contact your lender immediately you are challenged with repaying your loan facility There are consequences for not repaying loans on time