Loan Is Fine, But Interest Rate Is a Red flag 🚩
One thing I have desisted over the years is taking loans with interest. I really find it overwhelming when I have so many loans to pay up, and then the interest keeps mounting up over time, giving me a lot of pressure apart from the actual amount I borrowed.
I like the idea of interest without loans. It's one of the best options a business owner or entrepreneur can choose and won't collapse the business over time. I have been a victim of both types of loans, and I can say from my experience which is the best option.
Most times those who take loans with interest are left with no choice. So they just go for the offer available to them at the moment. If they were to make a choice I am so sure they wouldn't go for it.
Recently I found myself engulfed with a heavy load and it really overwhelmed me so much. The loan was with interest. I think about a 25% interest rate. Even before I took it I was in doubt for days before I could come to a conclusion. I finally took the loan and then used it for what I had to use it for. It was nice spending time sorting off my bills. But on one side of my mind are the heavy thoughts of repayment.
It was time for me to repay and then I realized I had gone too far in debt. I had a cumulative debt of 92,000 naira and the amount I borrowed was just 68,000 naira. I tried to live fine and not fine, but as the days decrease so does my headache increases.
I fought so hard to have peace of mind. But I am just finding it hard to get one for myself. All I could think of was to become a free man again. It’s much easier to spend money, but making that money is always a big problem.
I paid back the debt when I sold some of my fish at least to have freedom and a settled mind too.
There are some loan apps these days that are just so annoying, even though they make taking loans look so easy, but the issue is that once you fail to report on or before the deadline. The disturbance you will get would even choke you beyond the debt you borrowed.
My sister borrowed a loan app some time ago and it was just about time for her to pay it back. She had paid some on instalment but the little left got some delay from her end. The next thing she got was a load of calls from the app customer service for the repayment. After some time and she still hasn’t paid they got her info, and message and called a lot of her close contacts and addressed her debts to them. That was so disappointing and disgraceful.
After the repayment, she was cut short on the amount she could loan from the app, but after the payment was done they didn’t inform those they addressed her issue to in the first place about the repayment again.
In conclusion
Loans aren't bad at all. But the issue with it is the interest. And it would go a long way if we could access loans without interest. It will ease repayment and also make people want to opt for loans without fear.
This is my response to the HIVE LEARNERS weekly prompt in hive learners community for the Week 136 Edition 3 and the topic to be discussed is THE GOOD LOAN
Posted Using InLeo Alpha
Jesus fucking christ! Extortion! But I'm not even surprised. What else do you expect from a loan shark? smh
I read something similar to this in someone else's post a few days ago. I'm not sure whether this is only peculiar to Nigerian Loan Sharks, or if this is common and normal behavior to expect from loan sharks when people default on their payment.
Sometimes the interest rates on loans makes it even not attractive anymore cos these people just want to extort us. It is well.
Taking loans with high interest is suicide. I am not good at taking loans but when I have no options left I ensure I take the ones that won't be a burden to me. From 68k to 92k, come on, that interest was much. Well, sometimes, I am not necessarily bothered about the interest but what the person used the money for. It will hurt more if you take a loan with that much interest and didn't do anything reasonable with it.
Those loan app guys are something else. The can go any length to embarrass a person. Their approach to getting back their money is bad, how does calling all the person's contact now make the person refund their money? Look at the case of your sister, after the nonsense calls and texts she later paid. But they didn't call the contact s back to notify them that have has paid. They should find another strategy abeg.
That choice is what I don't pray for in my life. The way you will be disgraced is something I kept scared of. Taking a loan is easy, but paying it back is a problem.
25% and repayment of N24,000 loan on the N68,000 was exorbitant and like you stated, those loan sharks would paint borrowing an attractive venture until you fall into the victim of delayed remittance.
Painful your sister has to be exposed to the wickedness of those loan sharks. They go extra mile to damage the reputation of the borrower and still get their money back without an attempt to correct that which they had destroyed in a moment and what took the borrower years to build .
As long as you can cancel the debt soon and can make money with the money you are being lended is fine I think.