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Mortgage companies in Ghana are doing an excellent job of making mortgage loans available to Ghanaians with convenient terms. This article bears the complete list of mortgage companies in Ghana. For Ghana financial institutions, also known as mortgage lenders, mortgage banks in Ghana are making remarkable names. Are you wondering what mortgage is all about and where to get them? You can get the answer from this article.

What is a mortgage?

The word mortgage refers to a loan from a bank or other financial institution that helps you purchase a home or house.

An important thing to note about mortgage loans is that the home or house to purchase serves as the collateral. Mortgage payments are usually monthly. It comprises four components: principal, taxes, interest, and insurance.

Who is a mortgage lender?

A mortgage lender is a mortgage bank or financial institution that offers and underwrites home loans. Mortgage lenders have unique borrowing guidelines which verify the borrower’s creditworthiness and ability to repay a loan. They usually set the terms of the loan. They also specify the repayment schedule, interest rate, and other essential aspects of your mortgage agreement.

Types of Mortgages in Ghana

There are two most common types of mortgages in Ghana. You may want to know the one that applies to your needs and financial status. The two types of mortgages are:

1. Fixed-Rate Mortgages

This type of mortgage loan helps the borrowers with an already established interest rate. Which ranges over a set term of  15, 25, 30 or even 40 years, depending on the term. When they fix the interest rate, the term duration will be shorter, but higher monthly repayment. However, the longer the borrower takes to repay, the smaller the monthly repayment amount. Hence, the more the borrower ultimately pays in interest charges.

The major benefit of a fixed-rate mortgage is that the borrower has the liberty to count on their monthly mortgage payments. This is usually the same every month throughout the life of the mortgage. Hence, making it easier for the borrower to set household budgets while avoiding any unexpected extra charges from one month to the next. Usually, when market rates increase, the lender does not have to make the monthly payments higher.

2. Adjustable-Rate Mortgages

Adjustable-rate mortgages (ARMs) usually come with interest rates that vary or change over the life of the loan. Most times, the increases in market rates may cause the interest rates to vary. Hence, changing the amount of interest that the borrower must pay and the total monthly payment due. The lender often reviews and adjusts the interest rate from time to time. For instance, they may adjust the rate once in a year or once in six months.

One benefit of this type of mortgage is that they come with lower starting interest rates.

Meanwhile, borrowers, assuming their income will grow over time, often seek an ARM in order to start with a low fixed-rate in the beginning.

The only risk with an ARM is that interest rates may increase over the life of the loan. Sometimes to a point where the mortgage repayments become so high and difficult for the borrower to repay. This often leads to default, and the borrower may lose the home via foreclosure.

List of mortgage banks in Ghana

Glancing through the list, you will see the complete list of financial institutions in Ghana where you can get your mortgage loan. However, you can resort to the service of a mortgage loan originator before taking a decision. 

They register the following mortgage financial institutions in Ghana. The Bank of Ghana also approved them for operation.

Bank institutions

1. First national Bank
2. Republic Bank
3. GTB Bank
4. Nwabiagya Rural bank
5. All-time Capital limited
6. Fidelity Bank
7. Calbank
8. Ghana Home loan bank
9. Absa bank Ghana
10. Stanbic Bank
11. Societe Generale Ghana
12. Zenith Bank Ghana
13. Omni Bank
14. DCI Microfinance limited
15. Odotobri rural bank

Non-banking institutions that offer mortgage loan in Ghana

16. Dalex finance leasing company
17. Bond financial services
18. Leasafric Ghana
19. Bolkan capital
20. Izwe savings and loan Ghana
21. Omicron Estate services

Conclusion

As you’ve seen, the complete list of mortgage companies in Ghana above. Just before you choose your preferred financial institution for your mortgage loan in Ghana, you can consult a mortgage loan originator. Purchasing a mortgage loan is born out of the inability of individuals to buy houses off of their income. However, it might take long before you complete it if people save to build or buy a home. Hence, mortgage banks and other financial institutions that offer mortgage loans step into the scene to save the day. The institutions listed above can loan out capital, real estate investment, and accept payment in installments.

The tenor of any loan type, besides the rate of interest and monthly installments, is an important consideration. It’s crucial to choose the right loan repayment term because it affects the cost of borrowing. Given your current financial situation and loan requirement, you must determine the best period to repay the loan. Continue to know what loan tenor is, 5 factors that determine your home loan tenor and more.

What is a loan tenor?

Tenor is the time remaining before a financial contract expires. They sometimes use it interchangeably with the term maturity, although the terms have distinct meanings. They use tenor in relation to bank loans, insurance contracts, and derivative products.

Understanding Tenor

They often use tenor in relation to bank loans and insurance contracts. Whereas they more often use the term maturity when describing government bonds and corporate bonds. Colloquially, the two terms’ meanings are alike. Besides that, they may use them interchangeably for different financial instruments.

They also use the term tenor in relation to non-standard financial instruments, such as derivative contracts. In this context, they often use it when describing the riskiness of a particular security.

A future contract with a long tenor, for example, could be dangerous because its value could still fall significantly. Shorter tenor derivatives would also be less risky. Buyers of high-tenor assets will typically demand compensation as lower prices or higher risk premiums to compensate for this perceived risk.

Some investors may systematically avoid assets with tenors longer than the stated time, depending on their risk tolerance and financial objectives. A corporation with short and medium-term liquidity needs might gain and sell debt instruments having tenors of five years or fewer. They might make adjustments in this case based on the perceived creditworthiness of the counterparties. For example, a corporation might accept a five-year tenor from high-credit-rated counterparties while limiting tenors from low-credit-rated counterparties to three years or fewer.

Tenor vs. Maturity

Tenor and maturity have different connotations from a technical standpoint. While tenor refers to the time left on a contract, maturity relates to the length of the contract when it was first signed.

For example, a ten-year government bond issued five years ago would have a 10-year maturity. Its tenor, or the time left until the contract expires, would be five years. In this way, a financial instrument’s tenor decreases over time while its maturity remains constant.

Case study of Tenor

Alex is the CFO of a publicly traded company with a mid-size market capitalization. They must guarantee that the company has adequate operating capital to carry out its activities as part of their obligations.

Alex accomplishes this by purchasing and selling short and medium-term financial securities with maturities ranging from one to five years. They do so in the corporate bond market and with many counterparties in over-the-counter derivative transactions.

Alex’s portfolio currently contains various products with five-year maturities from highly creditworthy counterparties. These securities have a tenor of two years because they were purchased three years ago. They also included instruments from counterparties with lower credit ratings in their portfolio. In order to mitigate counterparty risk, they limit the maximum tenor of these securities to three years.

Special Considerations

In a credit default swap, tenor is essential since it aligns the remaining term of the contract with the maturity of the underlying asset. They must match the maturity of the contract and the asset in a properly structured credit default swap. Integration is unlikely if the tenor and the maturity of the asset are incompatible. Furthermore, cash flow coordination (and, as a result, yield computation) is only achievable when the tenor and asset maturity are connected.

5 factors that determine your home loan tenor

For both the lender and the borrower, a home loan is a long-term investment. Most people cannot purchase a home with a single payment. As a result, for a home loan, the tenor is just as significant as the interest rate. In this post, we’ll look at the elements that influence the length of a house loan.

1. Interest rate

One of the most significant aspects of any loan is the interest rate. It is the amount of money a person will pay back to the lender besides the principle borrowed. The money earned by the financial institution on the principle lent to them refers to the borrower as the interest rate. They accommodate financial institutions in allowing borrowers to select a tenor, with the longer the tenor, the lower the interest rate. This allows the borrower to pay a lower monthly EMI that they can comfortably manage.

2. What they use the loan for

They consider it while deciding the loan amount. For example, if a person takes out a loan to renovate their home, he or she may be eligible for a loan with a tenor of ten years. However, if a person takes out a home loan to gain land and build a house, they may be eligible for a loan with a tenor of up to 30 years.

3. Age of the property

The underwriter can employ a structural expert to study the building, its location, the number of years it has existed, and the materials used, especially if purchasing a used apartment or detached house. Several factors may affect the term of the home loan.

4. Credit score

If the borrower has a bad credit score, several financial institutions will shorten the term. Banks view such debtors as a risk since a low credit score shows poor credit management in the past payment of dues. They’ll try to get the money back as soon as possible, which will alter the tenor.

5. Age of borrower

The age of the borrower(s) has a significant impact on the length of the house loan. If the borrower is young, say 25 years old, he or she will be eligible for the maximum tenor, which is 30 years with most institutions. An older borrower may not be eligible for a long tenor or may be required to take on a co-borrower.

In addition, for combined home loans, financial institutions use the elder borrower’s age as the base age. If the borrower is younger and has a later retirement age, the tenor can be longer; otherwise, it will be shortened.

Frequently Asked Questions about Tenor

What Does Tenor Mean?

They refer to the time until a financial contract ends as the tenor. It’s frequently used interchangeably with “maturity.”

What Is Tenor in Banking?

In banking, tenor refers to the time it will take the borrower to repay the loan plus interest. A home loan term can range from 5 to 20 years, with certain institutions allowing up to 25 years.

What Is the Maximum Tenor?

Depending on the project and its debt servicing capacity, the loan tenure is normally between 5 and 25 years, with a maximum of 30 years. 

What Is Tenor Basis Risk?

Tenor basis risk arises when a basis swap occurs. Even if they change the price on the same day, in the same currency, and against the same benchmark, difficulties could develop if they re-price for different periods or tenors.

Conclusion

Maintaining a regular cash flow and appraising the riskiness of a contract require an understanding of the tenor of any financial instruments a company may have, such as a short- or long-term derivative.

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Loan application fee – Meaning and special concern

Loan write-off means that the bank has written off a debt. But this doesn’t mean that they have ceased the procedures to bring it back. Have you ever wondered why banks declare that bad debt is being written off? Isn’t it a loss for the bank that they can’t recoup the costs? Continue reading to learn what a write-off is, how banks write them off and why banks take them.

What Is a Write-Off?

Bad debt is debt that lenders cannot recover or collect from a debtor. Businesses use the provision or allowance method of accounting to credit the amount of debt they didn’t collect. They credit it to the “Accounts Receivable” category on the balance sheet. To balance the balance sheet, they make a debit entry for the same amount in the “Allowance for Doubtful Accounts” column. “Writing off bad debt” is the term for this.

The direct write-off method is used to expense bad debts. They credit the accounts receivable account on the balance sheet. And they debit the bad debt expense account on the income statement. There is no “Allowance for Doubtful Accounts” section on the balance sheet under this method of accounting.

How Banks Write off Bad Debt

Because their loan portfolios are their principal assets and source of future revenue. Therefore, banks aim to never have to write bad debt. Toxic loans are loans that cannot or are excessively difficult to collect, reflect badly on a bank’s financial accounts. Also, it can divert resources away from more productive activities.

They also know write-offs sometimes, as “charge-offs,” banks used to erase loans from their balance sheets. Besides that, they use it to decrease their overall tax burden.

Case study of a Bank Writing off Bad Debt

Banks never assume that they can collect all of their loans. Therefore, they require lending institutions to keep a reserve against unforeseen future bad loans. And this is under GAAP, which means accepted accounting principles. They also refer to it as the bad debt allowance.

For example, a company that provides GH₵100,000 in loans might set aside 5%, or GH₵5,000, for bad debts. They’ll deduct the GH₵5,000 as a cost as soon as they make the loans. This is because the bank does not wait for a default to occur. On the balance sheet, they show the remaining GH₵95,000 as net assets.

If more borrowers default than they expect, the bank writes off the receivables and absorbs the additional cost. If a GH₵8,000 loan defaults, the bank writes off the full amount and deducts an additional GH₵3,000 as an expenditure.

Why do banks write-off bad loans rather than keeping it open in their account books? 

The loan portfolio of a bank is its most valuable asset and source of future revenue. Because of this, banks do not wish to have their bad debts written off by default. Unreceived loans, which are simply loans that could not be collected. Can have a negative impact on a bank’s financial results and divert resources away from other productive activities.

Banks will charge-off loans, which are also known as write-offs. This is solely to remove loans from balance sheets and lower overall tax liability.

Write off vs. Write Down

They remove the debts from the balance sheet as assets when they write it off. This is because the company does not expect to recover payment.

When a bad debt is written down, however, some of the value of the bad debt becomes an asset. Since the corporation hopes to recover it. They write the portion of the payment that the company does not expect to receive off.

Consider a bank that offers a consumer the option of paying off their debt through a settlement agreement. The bank may make a one time settlement offer of 50% to the consumer to satisfy their debt obligation. If they accept it, they move the paid component of the invoice from Accounts Receivable to Cash. And also write off the unpaid portion with the amount credited from Accounts Receivable. Then they debit it to Allowance for Doubtful Accounts or expense to the bad debts expense account.

Special Considerations

The lender receives a tax reduction from the loan value when a non performing debt is written off. They give not only banks a tax break, but they also allow them to chase debts and earn money from them. Banks can also sell bad loans to third-party collection firms, which is a prevalent practice.

Conclusion

When a bank cannot recover a loan, they classify the debt as bad and is written off. Banks frequently write off bad loans, the most common form of bad debt for a bank. This is in bid to clean up its balance sheet and lower their tax liability. They require banks to maintain reserves for bad loans. When they write off a bad debt, they recover a portion of the money and write off the rest, usually as part of a settlement.

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What is the difference between loans and debts

Loan application fee – Meaning and special concern

Debt financing – What you need to know

Most times, getting loans in Ghana is very stressful not minding the purpose of the loan. Most of these stressful procedures are now stress-free from many financial institutions that offer loans. One of the major challenges Chananian encounters via a loan is collateral. Once financial institutions involve collateral, the loans become difficult to access. This is because most lenders/financial institutions require vehicles or landed properties as collateral. Hence, making it very difficult for people who can’t present that. Contained in this article is a list of few loans in Ghana you can access without collateral.

What is a collateral?

Collateral is any asset that a financial institution or lenders require from a borrower as repayment if the borrower defaults. Loan collateral includes a car, any landed property, and even a home. Basically, financial institutions use collateral to measure security against the risk that you won’t be able to repay the loan. This is the reason we know any loan with collateral as a secured loan. Whereas loans without collateral or measure against risk, we call it unsecured loan. It is unsecured not because they can’t get anything from you when you default. But in the sense that you don’t submit any tangible asset before you get a loan. You guarantee yourself of your trustworthiness.

List of loans in Ghana without collateral

You can now get a loan in Ghana, attaching no tangible asset as collateral when applying for a loan. The list of some loan in Ghana without collateral include:

1. Carbon Ghana

This is an online loan in Ghana. The application, processing and disbursement of money is with a smartphone. The requirement involves bio-data of applicant, employment details, passport and the amount you wish to borrow. he disbursement of money is quick once approved. The loan amount ranges from GH₵5 to GH₵1,000. One important thing to note with Carbon Ghana is that there is no extra charge on delayed repayment.

2. Fido loans

This is also an online loan application in Ghana, which allows you to access loans through your mobile wallet. The only thing Fido loans require is employment history, valid identity card and residential details. They review this immediately when you submit your application. If you qualify for the loan after review, then you will get your money in a few minutes.

Meanwhile, for you to borrow a vast amount of money from Fido loans, you need to build credit history with them for some time. You start this by borrowing small amounts and pay back in due time, over and over.

3. MTN Qwikloans 

This loan is very popular in Ghana with over 70% mtn users. It is also mobile money for mtn mobile money wallet users and only requires you to be an active mtn mobile money user. It does not require collateral. You get your money on the go as soon as you complete your application via USSD code.

4. Zidisha loans

This is one of most popular loans in Ghana without collateral. Zidisha is an online loan company that leverages on raising capital for projects and businesses for their customers. Zidisha requirements include business plan, aim, target market and repayment strategy. Also, additional fees of GH₵40 for loan processing.

Pros of loans without collateral in Ghana

Some benefits of loans without collateral are:

1. No collateral involvement
2. Faster applications and processing
3. You have a large potential borrowing amount

Cons of loans in Ghana without collateral

The downsides of loans without collateral irrespective of the benefits are:

1. It has high interest rates
2. Most loans without collateral are short terms
3. It involves personal guarantee

Conclusion

Seeking financial help has really been a dominant strategy in curbing depression and frustration. Loans without collateral in Ghana are not an exception to this life-feeling solution. Many financial institutions in Ghana are part of this significant achievement, but collateral has always been a hitch. But with the above loans without collateral mentioned in this article, you can now access loans without collateral in Ghana. It only involves a few requirements and you will have your money with you on the go. 

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Fido Lending Services Ghana – What you should know

Finances are the help you need to attain objectives, such as the purchase of a home, vehicle, educational tuition, medical bills, etc. You would consider getting a loan when you do not have enough money to make those expenses. Consequently, this is where personal loan, mortgage loan or business loan could come in. Borrowers at the financial institutions will offer you any of those loans you prefer. You can also consider Bayport loans while weighing your options for a lender. The requirements for Bayport loan, their requirements, how to apply, etc are all-inclusive in this article.

About Bayport loans

Bayport loans are the services that Bayport offers in South Africa. Since their inception in 2004, they have been in the credit lending market. They are now one of the largest private lenders. This is clear with how the many offices they have across South Africa. Their offices are in; Cape Town, Johannesburg, East London, Pretoria, Durban, Pietermaritzburg, etc. Bayport can meet the needs of their clients effectively through their nationwide distribution footprints. No matter how remote their clients’ location is, they provide them with loans and insurance product offerings. They aim to provide credit tools to South Africans, which are easily accessible. Besides that, their vision is to always offer services with solving their clients’ needs as a focal point.

What are the requirements for Bayport loans?

Before you get a loan from any financial institution. You must provide some requirements. Lenders use the information they get from these requirements to determine if you can pay back the loan.

The following are the requirements for Bayport loans:

1. Get a copy of your South African ID.
2. Present your last bank statement.
3. They will need a copy of your last receipt of salary.
4. Get your certificate of residency.     

What is the minimum and maximum loan amount I can borrow from Bayport loans?

The need you have will mostly determine the loan amount you would need. Lenders across financial institutions have different minimum and maximum loan amounts they offer.

The minimum loan amount of Bayport is R1,000. Whereas their maximum loan amount is R250,000.

How can I apply for Bayport loans?

Having seen the minimum and maximum loan amounts you can borrow. The next thing on your mind should be how you can apply for that loan you need.

The following is how you can apply for Bayport loans:

1. Visit any of their offices nationwide and make a loan request.
2. You can apply for the Bayport loan online. Register and verify your account on their portal. After that you are minutes away from getting approval on the loan you request.

What is the interest rate for Bayport loans?

Bayport loans offer loans with convenient interest rates for their customers per annum. However, interest rates vary across all their customers. This is because they set an interest rate depending on their customers’ financial information. Information like how much money their customers earn or if they already have other loans. Besides that, they also check if customers repay their debts. These definitely affect the interest rate customers will get. Therefore, their interest rates vary across customers.

How fast can I get the Bayport loans?

Some of your needs require urgent attention. Because of this, the earlier you get the money, the better it will be for you. The application process usually lasts a whole week. Because of this, you can get the Bayport loans after a week. However, paperwork complications might make it take a little more time. The complications may come from providing wrong documents for the loan approval. If you have those complications, the approval of your loan may take an extra week or two.

What are the repayment terms for Bayport loans?

Lenders and borrowers usually have a repayment for every loan. The repayment term states when and how the borrower has to make the loan repayment. They will penalise you if you cannot repay the loan according to the repayment terms. Besides that, your credit score suffers if you cannot pay back the loan according to the loan repayment terms. The repayment term of Bayport loan is from 6 months up to 84 months.

What is Bayport credit score?

Bayport credit score is a free service Bayport offers to their members. It shows their customers’ latest credit score and shows them the key factors that affect their score. Besides that, it also shows them the latest offers that can help reduce their interest costs. This Bayport credit score also helps their customers to always know where they stand with their credit. Also, help them learn how Bayport can help them save their money.

What are the benefits of Bayport credit score?

Bayport credit score has some benefits you could leverage on.

The following are the benefits of Bayport credit score:

1. It sends to you a monthly update of your credit score
2. You can access your full credit report
3. You get your credit monitoring alerts
4. It gives you tip to improve your credit score
5. You learn how you can save money on new loans and existing loans from other financial institutions

What is the Bayport loan calculator?

The Bayport loan repayment calculator assists the Bayport customers in making financial decisions. It gives you an estimate of the monthly instalments you have to make after taking out a loan.

Consider the following when calculating the cost of a loan:

1. Your interest rate
2. The fees you could pay including initiation fee and monthly service fees
3. Your loan term
4. The loan amount
5. Your insurance if the option is available

What is the importance of the Bayport loans calculator?

1. The calculator helps you to realize the effect of the loan term and loan amount on your finances in full

2. It helps to prevent you from taking a loan that might interfere with an existing repayment.

3. Bayport loans calculator helps you to know your monthly repayment upfront without surprises.

What are Bayport online statements?

The Bayport’s online statements help you keep track of your loan account and repayments. You can retrieve and view your account balance and statements online. You can only do this if you already have myBayport online account. 

Conclusions

You can avoid catastrophic consequences if you have loans to rely on in the time of need. Loans ease the burden of making unforeseen expenses, such as medical bills. 

However, you must ensure to pay back the loans you get. This is because you may not get another loan if you do not pay back the one you have. Besides that, it could harm your credit score, making access to any form of credit impossible.

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Republic Bank Ghana loan- Review

Loan calculator- Meaning and what you should know

Most likely, inadequate cash flow will lead us to apply for one loan or another. And this usually happens when we have little time to generate funds. As such, getting a loan for our needs makes perfect sense. That is why people go for personal loan, business loan, or even a consolidation loan. Customers can get loans from Advans Ghana in different forms. However, they limit these loans to Ghanaian businesses, such as; individual entrepreneur, sole proprietor, partnership and limited liability company. About Advans Savings and Loans, their general requirements, eligibility, how to apply, etc are all-inclusive in this article.

About Advans Savings and Loans

The Advans Group is an international microfinance group. Currently, they are serving clients in nine countries. And they include Cambodia, Cameroon, Ghana, Democratic Republic of Congo, Côte d’Ivoire, Pakistan, Nigeria, Tunisia and Myanmar. They established Advans in 2005.

Thereafter, they founded Advans Ghana Savings and Loans Ltd in 2007. They also know Advans Savings and Loans as “Advans Ghana.” They provide financial services to micro, small and medium enterprises (MSMEs) which have limited or no access to formal banking services.

What are the General loan requirements for Advans Ghana loans?

There are loan requirements borrowers must provide the lenders before they can get a loan. These requirements provide the lenders with important information about the borrowers, and Advans Ghana also require that from clients.

The following are their general loan requirements:

1. Pictures (of passport size)

2. A valid national photo ID (Voters, driver’s license, NHIS or passport)

3. Proof of tax payment

4. They could also need your business registration documents.

Who is eligible for the Advans Ghana loans?

Only the individuals who are eligible for a loan package can apply. The Advans Ghana loans are not in exception. Ghanaian business such as individual entrepreneur, sole proprietor, partnership and limited liability company are eligible for the Advans Ghana loans.

How can I apply for Advans loans?

To qualify for a loan, you must apply for it. Especially if you think the loan is adequate to meet your needs.

In order to get the Advans Ghana loans, you can;

1. Apply online: You can apply through their website. Put your personal details and follow the prompts.
2. Visit their nearby office: you can visit any Advans Ghana office near you and request for the loan.

How fast can I get Advans Savings and loans?

Your need for the loan could be urgent, and how quickly you receive it becomes a top priority. You can get the Advans loans within 7 days if you provide all the documents timely.

What is the repayment term for Advans Savings and Loans Ghana?

With the flexible repayment plan, you can repay the loans within 12-36 months. With this term, you can also enjoy comprehensive insurance coverage.

What Loan products do Advans Ghana offer?

Advans group in Ghana offers various loan products to borrowers. They offer a wide range of loan products to suit various purposes and people with various personal needs.

The following are their loan products:

1. Individual loans

They designed this loan type to assist small and micro-business owners to finance their asset acquisitions and business expansion.

The individual loans have some key characteristics and they are:

• Competitive interest rate

• Monthly repayment plan

• No compulsory deposit before loan application

• Flexible collateral requirement.

2. SME Loans

This type of loan helps to finance asset acquisition and expansion needs of medium-sized businesses.

The characteristics of SME loans are:

• The interest rate is competitive

• There are no prior savings

• They tailor the repayment plan

• It has lower processing fees

• The loan duration is from 4 to 24 months.

3. Group Loans

A group of three (3) to six (6) members can get this type of loan. Especially if they are micro-business owners and want to expand the scale of their activities.

The group loans have the following characteristics:

• Competitive interest rate

• No prior savings before loan application

• Monthly repayment plan

• The loan duration is from 3 to 12 months.

4. Guarantor Smart Loans

This loan is available specifically for entrepreneurs who are guarantors to a current facility (which must be in good standing). They also consider the guarantors’ overall level of indebtedness, which must remain under the limit they allow.

What are the benefits of Advans Savings and Loans Ghana?

Advans Savings and Loans Ghana have some benefits borrowers can get for using their services.

The following are their benefits:

1. All their loan clients or borrowers benefit from Obrapa Insurance cover. This depends on the outstanding loan balance, just in case of death. Or permanent disability, hospitalisation, destruction of productive assets through fire, natural disaster.

2. Besides that, the insurance cover brings benefits for the borrowers or their beneficiaries in case of death or destruction of assets.

3. If the borrower’s spouse registers, they give a benefit to the borrower. Just in case of the spouse’s death.

What are the contact details of Advans Savings and Loans Ghana

The contact details of financial institutions will help you make complaints and get further inquiries regarding any of their packages.

The following are the contact details of Advans Savings and Loans Ghana:

1. Address: P.O. Box AN11426, Accra North Accra, GHANA
2. Phone number: +233–26565 4771
3. Fax: +233 – +233 – 302 24 7867
4. Email: info@advansghana.com
5. Website address: https://www.advansghana.com

Conclusions

It is important to consider the overall benefits of each lender before you make your choice. With these benefits, you can choose the best lender for you. Advans Savings and Loans benefits borrowers through Obrapa Insurance. With the above information, you can clearly see that there are few or no other lenders offering such in Ghana. Although offering various loan packages for their borrowers (individual, group, etc) is top-notch, the bank still meets their needs to the fullest. 

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How to get a loan from Absa bank Ghana

Progress Savings and Loans – What you should know

Types of loans in Ghana – Meaning and advantages

Simply put, when you are under debt review, you must avoid loans at all costs. When you’re in debt, taking out a personal loan can cost you everything you’ve fought so hard for. They have helped and protected many Ghanaians from being blacklisted. Besides that, it protects their belongings from being repossessed, or living with a severe debt burden. This has been the case since the National Credit Act (NCA) introduced debt review in 2007. You might want to know if you can get a loan under debt review. This article provides you with what you should know about debt review. Besides that, it will also provide you with insight into whether you can get a loan under debt review.

The meaning of debt review, the goal of the debt program, how it works and so on are all-inclusive in this article.

What is debt review?

Debt review is a formal debt rehabilitation program that aims to assist consumers who are suffering to make ends meet financially. If you’re facing a debt review, it implies you’ve hired a debt counsellor. And this counsellor has determined that you’re over-indebted and in need of a repayment plan.

What is the goal of debt management program?

The goal of a debt management program is to get people out of debt and teach them how to manage their money. While debt review has some advantages, such as protecting your assets from being repossessed by the creditor, it can also have serious consequences if it does not follow the process and agreement.

Because of this, they should not consider debt review as a quick or easy means to get out of debt. Applicants should use it only when absolutely necessary. Besides that, they should understand that it will require a significant amount of dedication, discipline, and sacrifice on their part.

How does debt review work?

A debt counselor examines your outstanding debt. Thereafter, works with you to build a restructured debt repayment plan during the debt review process.

The debt counselor then works with your credit providers to renegotiate interest rates and repayment arrangements. Definitely with the goal of lowering your debt levels.

You’ll just have to make one reduced monthly payment to your debt counselor after that.

After the debt counselor has created an affordable monthly budget and repayment plan for you. You can begin your journey to financial freedom with some breathing room and peace of mind. Especially knowing that creditors will no longer harass you.

When you are under debt review, however, you should:

1. They do not permit new credit agreements, either loans or property finance.
2. Additional fees, such as debt counselor fees, payment distribution fees, agency fees, and so on, would have to be paid.
3. Because of the longer payback periods, you may wind yourself paying higher interest.
4. Your credit report will show a flag to creditors showing that you are in the process of debt restructuring.

It’s also worth noting that once you’ve decided and confirmed your repayment plan. You can’t skip any payments while you’re under debt review. If you miss a payment while under debt review, they may cancel your entire payment plan.

So, to ensure that your debt review is effective, you must make every monthly payment under your repayment plan on time to avoid jeopardizing your debt review agreement.

What if you can’t afford to pay your debt review?

Before you begin the debt review process, understand that they have given you a lifeline to protect your assets. Besides that, they provide you with a consolidated repayment plan with lower interest rates. Because of this, you must make sure you don’t miss any payments at any costs.

If you miss a payment or don’t make it at all, your creditors may take legal action against you. Also, they may repossess your property, and you may lose all the payments you’ve already made toward the debt.

Before signing a debt review form or application, make sure you understand what they expect of you. This will help protect you from a financial bind that may also jeopardize your possessions.

How long does the debt review process last?

While debt repayment through the debt review procedure can take up to 60 months on average, it depends on a variety of circumstances, including:

1. How much debt do you now have?
2. What is the interest rate on your debt?
3. What level of commitment do you have to get out of debt?

Can I get a loan while my debt is being reviewed?

You won’t be able to get a loan or a credit card while your debt is being reviewed. They didn’t create this to make things tough for you. Rather, it’s meant to assist you in regaining financial control. If you keep using credit during the procedure, your debt will spiral out of control. And because of this, you may not make your scheduled payments.

In the market, however, there are several unregistered loan sharks and reckless lending companies. If they give you a loan while your debt is being reviewed, you should be extremely cautious. These unscrupulous persons are most likely attempting to make money off of you by exploiting your vulnerabilities. Besides that, they may charge you exorbitant interest rates.

The NCA (National Credit Act established the debt review process) in order for South Africans who are in debt to rehabilitate their finances. The alternative would be to go into personal administration and deal with the long-term consequences, such as asset repossession.

The major goal of the debt review procedure is to get the person debt-free so that they may concentrate on their current debt rather than adding to it.

Why should I consider debt review?

1. Instead of making many payments to different vendors, you’ll simply have to make one fixed monthly payment.
2. Reduced monthly debt repayment installments can assist you in making room for your expenses.
3. The NCA will legally safeguard you from creditors seizing your property.
4. When you are under debt review, credit bureaus no longer have the authority to blacklist you.
5. Take a break from credit and get out of the debt quagmire.
6. You will become debt-free and embark on a path to financial independence.

What happens if I need more money whilst under debt review?

Life happens to all of us, and we can become overwhelmed by the pressing financial demands of our time.

If you still need to use credit to cover your daily costs, speak with your debt counselor about how they can help you budget more effectively each month. You must be able to handle your existing debt and learn to change your lifestyle until they pay off your debt. The sense of liberation you’ll feel at the end of the procedure will far transcend any sentiments of instant satisfying fulfillment.

Debt review summary

If you are over-indebted, undergoing a debt review can help you organize your debt and structure payment schedules into much more manageable and doable portions.

If you’re worried about losing your home or car because you’re in too much debt, a debt review may help you save your possessions from being repossessed.

Debt Review can help you get out of debt in the long-term while also protecting you from having to rely on personal loans to pay off additional bills.

However, before requesting a debt review, you should first contact your creditors to advise them of your difficulties paying your credit payments and see if they would be ready to renegotiate other payment conditions that would better suit your current situation.

Conclusion

The lesson here is clear: while a change in lifestyle brought on by financial fragility is difficult, and reassessing priorities to create a budget is emotionally demanding, making cuts sooner rather than later may mean making fewer harsh decisions. Keeping your financial alternatives open requires monthly monitoring of your own financial well-being and early discovery of a rising budget imbalance.

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Bad debt – meaning and what you should know

Who is a creditor? What you should know

Debt financing – What you need to know

A loan disbursement is a payment made by a firm in cash or cash equivalents over a specific time period, such as a quarter or a year, in accounting. Individuals and corporations can always use loans to get through financial troubles. Personal, business, mobile money, guarantor, quick loans, and other types of loans come to mind. They’d require these loans to actualize some of their ambitions when they lack financial flow. Because of this, financial institutions normally need the applicant to fill out a form in order to get any of the loans. The applicant can then attach a loan application letter to the form, which will provide additional information not contained in the form. They’ll then disburse the loan once you’ve met all the prerequisites. Read the rest of the article to understand what how loan disbursement works and so on.

What is loan disbursement?

The term “disbursement” refers to the act of releasing funds. Money placed into a business’ operational budget, the delivery of a loan amount to a borrower. Or the payment of a dividend to shareholders are all examples of disbursement. A disbursement is money paid on behalf of clients by a mediator, such as a lawyer’s payment to a third party.

A portion of a company’s financial flow is disbursement. It’s a log of day-to-day expenditures. When cash flow is negative, when disbursements exceed income, it can be a sign of impending insolvency.

A disbursement is when they deliver money physically from a bank account.

How disbursement works

In accounting, a disbursement is a payment a company makes in cash or its equivalents. And this occurs over a set period, such as a quarter or a year. A bookkeeper records each transaction and then posts it to one or more ledgers, such as the cash disbursement log and the general ledger.

A disbursement record contains the date and the payee name. Besides that, it also contains the amount debited or credited, the payment method, and the payment purpose. Thereafter, they change the business’ overall cash balance to reflect the disbursement.

Disbursements are a record of money outflow from the company, and they may differ from actual profit or loss. For example, a corporation that uses the accrual method of accounting records expenses as they occur. Not as they pay it, and income as they earn it, also not as they receive it.

The type of business determines the sort of items recorded in the ledger. A store makes payments for inventory, accounts payable, and a manufacturer trades payroll. Raw materials and production costs.

Managers use ledgers to track and determine how much money they have disbursed. Management, for example, can monitor how much money they are on inventory compared to other expenses. The managers can also detect whether any checks are missing or incorrectly reported because the ledger details the numbers of checks issued.

Types of Disbursement

The controlled dispersal and the delayed disbursement are two further obscure applications of the word disbursement (also called the remote disbursement).

1. Controlled Disbursement

Controlled disbursement is a cash flow management service offered by banks to their corporate customers. Daily, it allows them to review and reschedule disbursements. This allows individuals to maximize the interest they earn in their cash by delaying the precise time when lenders debit a certain amount of money from their account.

2. Delayed Disbursement

They also know delayed disbursement, as remote disbursement. And this is the practice of delaying payment practice of delaying payment by using a check drawn on a distant bank. The debit to the payer’s account could take up to five business days. This occurs if a bank could only process a payment after receiving the original paper check.

Because they often accept an electronic copy of a check in place of the original paper check, this strategy is difficult to implement.

Examples of disbursements

An attorney must maintain track of all expenses made on behalf of a client while pursuing a legal action. They could include payments to third parties for debt incurred in the case, like court fees, private investigator services, courier services, and expert reports.

In order to generate an accurate evaluation of the client’s losses and create an understanding of claimed damages, it’s critical to document these costs properly in a legal case. Before incurring large disbursement costs, the attorney must tell the client and the insurance company, and the client must reimburse the attorney.

1. Student Loan Disbursement

They know the transfer of loan earnings on behalf of a borrower, who is the student as a student loan disbursement. However, schools and loan servicers notify students in writing of the expected receipt of disbursements, including the amount of the loan and its effective date.

During the academic year, they often disburse federal and private student loans two or more times. The student will get a credit for tuition and fees, and check or direct deposit will pay any remaining debt.

2. Positive and Negative Disbursement

A positive or negative loan disbursement is apparent. A positive payout causes an account credit, whereas a negative disbursement causes an account debit. If financial aid payments are overpaid and then removed from the student’s account, a negative disbursement may result.

Conclusion

A disbursement is a complete payment they have recorded. And they also debit it from the payer’s account and credit it to the payee’s account. The frequent recording of all cash disbursements is a critical means of keeping track of a company’s expenses in business. Besides that, they use the term disbursement in a variety of circumstances in the wider world. And this goes from the crediting of student loan funds to the completion of a retirement account withdrawal.

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Loan application fee – Meaning and special concern

How to improve your credit score in Ghana

There are so many ways to get money to solve your needs. Loan sharks are a terrible option to get money. Since they do not operate legally, it is possible for you to land yourself in a worse financial situation than you were earlier. There are credible lenders, like Fido money lending, which offers loans to borrowers even within one business day. It would be very nice to try it out, especially when you need cash urgently in Ghana. About Fido money lending, reasons to get a loan from them, how to apply, etc are all-inclusive in this article.

About Fido Money Lending Limited (FIDO)

Fido Money Lending Limited is a financial institution that exists in Accra. Bank of Ghana gave Fido Money Lending Limited the license to operate in Ghana. They offer short-term loans that are fast and convenient for Ghanaians, which they call FIDO Loans. They operate mainly through their robust digital online platform. And to apply, borrowers can do that through their mobile phones and get the loan decision within a few minutes. Salary earners, contracted and self-employed professionals have access to the loans.

With one time verification of your ID and your mobile money account will be enough to get you the loan.

They also do not require collateral or guarantors before you can get the loan. Making the loan application process quite easier and enabling quick decisions. And because of this, borrowers can get their loans within one business day.

Fido money lending limited offer these loans to borrowers to assist them with urgent cash needs, and not for long-term purposes.

Fido money lending app download

The FIDO money lending app has over 23,000 users and with 4.2 rating on Google play store.

They created the FIDO money lending app to make it easier for Ghanaians to apply for loans. This helps them to apply for loans from any place.

What are the requirements for Fido money lending limited?

Lenders typically require certain information on you in order to approve loans you apply for. They will need this information in order to evaluate your application. Additionally, these requirements are essential for document and reference purposes.

The following are the requirements for the FIDO loans:

1. Get your valid ID (voter’s ID and biometric passport)
2. Bring a mobile money account that is at least 2 months old
3. Be a Ghanaian or a resident in Ghana over 18 years of age.

What is their minimum and maximum loan amount I can borrow ?

You must consider where you can get the amount of loan you need whenever you need one. The minimum amount of loan you can get from FIDO money lending limited loans is GHS 200. Whereas their maximum loan amount is GHS.

How can I apply for the FIDO money lending limited loan?

Ways to apply for loans differ across financial institutions. And because of this, you must follow through with the instructions they give you for the loan application. Just like mortgage loans, travel loans, etc have their application processes.

How do I borrow money from Fido?

1. You can visit any of the FIDO loan branches nearby to request for the loan.

2. Download the app, then fill in your details. You just need to do this only once. Thereafter, for subsequent applications, you just need to confirm your details only.

3. Apply for the loan.

4. You would receive an immediate loan decision from them. If they approve your loan application, then you will receive the money instantly into your mobile money account.

Note: They might ask some customers to visit their branch if they can’t verify them appropriately online.

What is their interest rate?

The interest rates of loans could encourage or discourage a borrower while assessing loan lenders. The interest rates of FIDO loans are usually 14% for 30 days. You’ll see it in the app before applying. But returning customers who have an excellent credit history of paying their loans will get better interest rates. However, the lowest interest rate for FIDO loans is 8% for 30 days.

How fast can I get the Fido loans?

Before applying for any type of loan, always know how fast you can get the loan. This will help you make right decisions as regards the timeframe you are trying to meet up. And also to know whether you’d look for another lender.

What are the repayment terms for FIDO loans?

FIDO loans have flexible repayment terms, and the applicants are free to choose the one they prefer. The repayment terms of FIDO loans is usually between 10 and 90 days. And you can repay it in one or multiple installments. But this specially depends on your eligibility.

Why should I try out FIDO loans?

When assessing the options of loan lenders around. The most important thing for you is to make the right decision. Especially the one that will in all ramifications relieve you of stress and drama.

The following are the reasons you should try out FIDO loans:

1. You can apply from any place, be it your home, office or market.

2. You can get a loan request decision within minutes.

3. There are no hidden fees. The app will display to you all the costs the loan attracts.

4. You no longer need to wait in bank queues and there are no paperworks.

5. They do not require collateral and guarantors.

6. They disburse the money instantly upon approval.

Conclusions

No longer can people only get loans from traditional banks. People used to queue up for a loan all day in banks. But unfortunately, most people go home disappointed. It is no longer the case these days. There are online platforms where you can easily get a loan. And FIDO money lending limited offers one of the few online platforms that disburse funds within a few minutes. However, note that prompt repayment of loans will most likely improve your chances of getting another loan in the future.

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Loans in Ghana without collateral – What you should know

Best loan apps in Ghana 2021

Fido Lending Services Ghana – What you should know

The unexpected can happen, so we understand unexpected expenses. This could be a funeral, a wedding, or even a hospital bill. Emergency loans are one way some financial organizations in Ghana help with such emergencies. However, an emergency cash loan helps customers deal with their short-term cash problems. Reading further, you discover the meaning of emergency loans and other necessary information about you need to know.

What is an Emergency Loan?

An emergency loan is an unsecured loan you can take out to cover unexpected expenses. The amount to borrow varies regarding on how much you need to cover costs. Most of the time they are quick, with deposits occurring within a day or two after they approve you for a loan. Some lenders usually fund loans on the very day you apply. They do not require collateral because most emergency loans are unsecure. They sometimes refer them to as quick loans.

But some lenders offer secured personal loans that require borrowers to put up assets to borrow money. Such assets include homes, cars, savings accounts, funds and other assets. Also, you can access emergency loans through credit card advances and pay day loans as they have their own advantage.

Types of Emergency Loans in Ghana

Most emergency loans can come in a few different forms, which include:

1. Personal loans

 There are many lenders who offer secured personal loans, which usually have collateral, such as the collateral itself, like cars, investments, and real estate. Some personal loans are also available with no collateral, such as business loans.

2. Credit card advances

The interest rates on credit card cash advances are higher than APR on regular purchases, as well as additional fees. Interest accrues when you take money out. Nothing like a grace period. This, however, increases how much you will pay back.

3. Payday loans

A payday loan is a small, high-interest loan that rarely requires credit checks, but has a fast turnaround time, usually requiring that you pay it back by your next paycheck. 

4. Title loans

 Title loans are loans taken out against the title to a vehicle, like your car, in exchange for cash. If you don’t repay the loan, the lender can keep your car.

Uses of emergency loans in Ghana?

In Ghana, you can use emergency loans for various purposes, such as:

1. You can use emergency cash loans for utilities. Keeping the lights on and making sure your phone stays on is easier with an emergency loan to pay utility bills on time. Staying on top of your bills will prevent a drop in credit scores and keep you from falling behind on expenses.
2. An emergency loan can cover unexpected medical expenses or expenditures at the emergency room.
3. You may need an emergency loan if a loved one passed away and did not provide for funeral costs or other end-of-life expenses.
4. Often an emergency loan may be the only way to get by until you get paid again if you cannot pay your rent or mortgage.
5. A home equity line of credit or a home equity loan offer better interest rates and terms than home repairs needing immediate attention. Likewise, auto repairs occur at the most inopportune times. If you need a home repair or auto repair and can’t afford to wait too.

Consider checking the terms and limitations of your potential lender before applying for a personal loan. For instance, some lenders prohibit the use of emergency loans to pay for postsecondary education in Ghana.

How do I choose an Emergency Loan in Ghana?

When exploring various emergency loan lenders, it is essential to avoid picking the first one that appears when making your research. There is a need to shop for the best lender by considering:

1. Financing time

Ideally, one to two days is the perfect time frame. While some lenders take several days to deposit funds, other lenders can do so the same day.

2. Fees

Find out the exact costs that each lender charges by reviewing the fine print. For instance, origination fees and late payment penalties are common emergency loan costs.

3. Requirements for credit scores

Your credit score affects your interest rate and how much you can borrow from the lender. Most lenders have a credit score threshold you need to meet in order to apply for a loan.

4. Interest rates

You may qualify for the lowest interest rate if you have excellent credit, but keep in mind what lenders charge for credit that is less than perfect. Then, compare lenders accordingly for the loan you need.

5. Terms of repayment

Do you want to pay your loan back sooner with larger monthly payments? Or do you need smaller payments so you can pay it off? Emergency loan terms differ by lender, although some require repayment of at least a minimum amount each month. Therefore, if you borrow ₵500, you could have a loan for up to a few months.

Where can I access an Emergency Loan?

We can arrange an emergency loan through a credit card store or a payday lending company. The best option for funding a personal loan is a traditional unsecured loan through a credit union, a bank or online lender.

1. Credit Unions

Credit unions offer emergency loans to members who have credit union accounts instead of bank accounts. They are more friendly toward borrowers with fair credit and poor credit.

You may also want to consult other options because some credit unions lend only to members or to those that have been members for a certain amount of time. If you don’t meet those criteria or if you are seeking a higher amount of borrowing, then look at other options. Keep in mind, however, that some credit unions will only lend to their own members. In case you cannot meet those requirements, or if you need to borrow more, there may be other options available to you.

2. Banks

A brick and mortar institution may assist you in obtaining a personal loan while you have a traditional bank account there.

Banks usually have different processing methods when compared to other lenders. Most banks, for instance, have higher credit scores or income requirements before you qualify for a personal loan. It could take longer than you think to get funds deposited into your account, so you check the time it typically takes before applying.

3. Online Lenders

Several online lenders offer a wide variety of emergency loans and most don’t require members or members with a current account to apply. Many offer the option of pre-qualification, so that you can see if you’re eligible for a loan before you actually apply. This way, you can avoid a hard credit check that may hurt your credit.

Many traditional banks also offer online applications and processing if you do not feel comfortable with an online lender. All you need to do is to make sure that it’s a reputable online lender with a secure website and a strong offering.

Note that each lender has different standards and requirements. Therefore, there is a need to review as many as you can before applying for an emergency loan.

Alternatives to Emergency loans in Ghana

There are other options besides emergency loans for borrowing money fast. You may consider these before applying for an emergency loan:

1. Getting rid of your high interest credit cards, consolidating your credit cards, or applying for a zero percent balance transfer credit card.
2. Repaying a medical bill. Talk to the hospital about setting up a repayment plan that works for you. Some hospitals have interest-free repayment plans, so you can schedule several hospitals will settle your bill if you will pay a portion of it up front. By doing this, they will collect payments and keep the rest.
3. Accessing your home’s equity through a Home loan. They secured these with collateral in your home. HELOC interest rates are typically lower than unsecured loans, while repayment terms are usually long enough to allow you to afford low monthly payments.

Conclusion 

When you’re really struggling, you can encourage your friends and family to lend you a hand. There are also many nonprofits that can help you out financially, especially emergency loans. 

Taking out an emergency loan is never easy, so try to exhaust other options before borrowing money. In times of need, emergency loans can be a less expensive option to payday loans, title loans, and credit card advances. Decide on your best course of action by weighing all the options.

Read also:

Quick loans in Ghana – Everything you should know

Mobile Money loans in Ghana – Everything you should know

Money lending apps in Ghana you should know