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SikaPurse provides a variety of credit solutions. So you can easily download and use SikaPurse to apply for online loans in Ghana. As we are in the digital era, many lenders carry out their transactions with borrowers paperless. Because of this, gone are the days borrowers used to queue up in banks to get loans. Now, they can do that from the comfort of their homes. How to apply for SikaPurse loan, requirements, loan terms, etc are all-inclusive in this article.

How to apply for the SikaPurse loan

Before you can get any loan, you must first of all apply. To apply:

1. Download and install SikaPurse app
2. Register an account
3. Fill out basic information and submit
4. Apply online
5. Get the loan into your bank account directly
6. Pay off your debts on schedule or complete activities to increase your credit limit and lower your interest rate.

What are the requirements for SikaPurse loan application?

There are some requirements you must meet before you can apply for any loan. Lenders always ensure that all applicants meet certain criteria before they are selected to be offered loans. The requirements for SikaPurse loan include:

1. You must be a Ghanaian.
2. You must have a source of monthly income (Be a worker)
3. Your Ghanaian documents like Ghana voters ID should be used in your application.
4. Must be within 22-55 years old.

What are the minimum and maximum loan amount of SikaPurse loan?

Since you seek loans to meet your financial needs, you should know the amount available you can borrow. The amount of loan lenders offers borrowers varies. Their minimum loan amount they offer is GH₵2,000. Whereas the maximum loan amount they offer is GH₵5,000.

What is the loan term of SikaPurse loan?

Before you borrow money from any lender, ensure you know the loan term. Their loan term of is 90 days (the shortest) and 365 days (the longest).

What is the interest rate on SikaPurse loans?

All lenders place a specific interest rate for every loan they offer borrowers, and Sikapurse is inclusive. Sikapurse loans’ interest rate is from 8% to 25% per annum.

What are the benefits of SikaPurse loan?

There are some benefits borrowers can gain from getting loans from them. They include:

1. They can lend you up to GH₵5000
2. You can select your payment tenure
3. It is reliable, secure, and flexible
4. There are no hidden charges
5. They provide a credit decision
6. They are at your service 24 hours every day of the week.

How to repay SikaPurse loan

When you borrow money from them, you agree to repay the loan on time. This will help increase your chances of getting a loan in the future from them or any other lender. Besides, if you default on your loan (fail to repay it), it will harm your credit score.

Now, let’s see how you can repay your SikaPurse loan:

1. Open the their loan app. Once you are in the SikaPurse Loan app, you will see ‘Repayment.’ Kindly click on that button.
2. On the next page, they will show you the amount you are supposed to pay. Then, to proceed click on ‘Repay Now.’

Note: As of right now, Sikapurse exclusively accepts offline payments for their loan repayment method.

How to repay SikaPurse loan using MTN Merchant Mobile Wallet

The following instructions show how you can repay your SikaPurse loan with MTN Merchant Mobile Wallet:

1. Dial *170#
2. Select 1 (Transfer Money)
3. Type 1 (momo user)
4. Input Users Number
5. Confirm number
6. Enter the amount
7. Enter reference

What are Sikapurse contact details?

In order to reach SikaPurse for more inquiries, you can contact them through:

1. Customer Service Email: sikapurseservice@outlook.com
2. Customer Service Hotline: 0571375874
3. Address: Mensah Wood Ave, Accra, Ghana.

Conclusion

SikaPurse loan could come in handy when you need cash quickly. All you need to do is follow the steps discussed in this article to apply for the loan. However, you must remember to repay your loan according to the agreed loan term. This is because it will affect your credit score if you cannot repay your loan. Besides that, credit bureaus might blacklist you and make you ineligible to access loans from any other lender.

WohiaSika Loan is one of the loan offers you can try out in Ghana. Also, financial institutions (both online and offline) have embraced a paperless system to reach more clients in this modern time. The Vodafone Cash Loan, Fido Loan, MTN Qwik Loan, Sika Masters Loan are examples of such loans. However, in this article we will examine the requirements, how to apply, interest rates of WohiaSika Loan.

About WohiaSika Loan

In Ghana, WohiaSika is a new Fintech platform or mobile lending application. WohiaSika is an application in Ghana that can quickly provide loan services based on users’ credit value with simple steps. To acquire the loan limit from them, simply complete our online loan application. No collateral is needed.

What are the requirements for WohiaSika Loans?

In order to determine whether they are qualified for a loan from them. Therefore, applicants must first review the requirements listed below:

1. You must be a Ghana Resident.
2. Be between 18-60 years old.
3. You must have good credit score.

How do I apply for a Loan from WohiaSika?

Their loan application is easy to complete. You should follow the steps listed below to get a loan. Installing the WohiaSika Loan mobile app is required before the loan can be instantly deposited to your account.

1. Start the WohiaSika mobile app on your smartphone.
2. On the Wohiasika app, create an account.
3. Click the “request for funds” button on the WohiaSika Loan mobile app.
4. Fill out the loan application in the APP with the information from your personal and mobile money accounts to apply.
5. After providing the necessary details, receive your money immediately.
6. Get a bigger loan amount by making on-time repayments.

Wohiasika Loan Contact numbers

For more information, contents or suggestions:

1. Email：wohiasika@gmail.com
2. Tel: + 233 20 163 3088.
3. Address: No54 Fanofa Street Kokomlemle, Accra.

How to install WohiaSika App

Before you can apply for the WohiaSika Loan, you will have to apply using their loan app. Here’s how to install the WohiaSika app:

1. Installing the WohiaSika App comes first. Then launch the app on your Android device after downloading and installing it.

2. Google Playstore, to be precise. Look up WohiaSika.

3. It will launch the WohiaSika Loan Mobile app page on Google Play. Select “Install” from the menu.

4. To start the download, grant the requested permissions.

What is the maximum and minimum amount of WohiaSika Loans?

Before applying for any loan type, you should know the minimum and maximum loan amount the lender is offering. This will help you know whether such a loan will meet your financial needs. For WohiaSika Loans, you can get a minimum loan amount of GH₵100 and a maximum amount of GH₵5,000. However, on initial application by new borrowers, they are only eligible for 100–200 cedis.

WohiaSika Loans Interest Rates

The interest rate on their loan is from 10.95% to 22.31% per annum, with a service rate from 0 to 1%.

For better understanding, the following example will show you how they calculate your interest rates on their loans:

A loan of GH₵5,000 with a duration of 100 days, will accrue an annual interest rate of 10.95%, and a 0 service rate. Therefore, the daily interest rate = 10.95 % /365 = 0.03%, the interest for 100 days = 5,000 × 10.95 % /365 × 100 = 150.

The total repayment = 5,000 + 150 = 5,150.

What is the their Loan term?

Every loan comes with a loan term. Because of this, you should know the terms of loan you are applying for. The WohiaSika Loan term is Loan 91-365 days.

What are the benefits of WohiaSika Loans?

As a borrower, there are some benefits you will gain in getting funds from them. They include:

• To get the loan limit from WohiaSika, simply complete their online loan application.
• Your private information is secure. No disclosure to third parties.
• WohiaSika do not require collateral.
• Simply completing their online loan application will provide you with the loan limit.
• No paper contracts or agreements are required; everything may be done through their smartphone app.
• If you meet all of their requirements, you can have a loan approved right away.

Conclusion

There are many online money lenders here in Ghana and WohiaSika is one of them. Of course, lack of cash flow most times makes people seek financial backup from lenders as loans. However, beware of loan sharks who would offer you loans without wanting to know your capability of repaying it.

When we need money to cover a variety of necessities and unexpected expenses. Lenders offer a variety of loans, including personal loans, home loans, auto loans, gold loans, and others. Equated Monthly Installments (EMIs) are the method through which borrowers repay their loans and the lender’s interest. However, there are situations when clients experience financial hardship and cannot make loan payments on time owing to unforeseen circumstances. Read this article to learn more about loan overdue, its case study, effects, and steps to clear it.

What is Loan Overdue?

The loan balance clients don’t pay back on time is the loan overdue amount. The Loan Overdue Amount is the sum that has not been paid even after the payment due date, as the name suggests. Additionally, it refers to any loan or lease agreement made available by the borrower in which the party responsible for making payments has not done so within 90 days of the due date.

Case Study on Loan Overdue

Let’s imagine a customer has an EMI for a personal loan due on a certain date and is for GH₵9,000. They will consider this sum the loan overdue amount if he doesn’t pay this EMI by the deadline. The lender will begin charging a late interest charge on this past-due loan. Therefore, the Loan Overdue Amount may increase due to numerous penalties and additional interest on late payments if a person consistently misses his or her EMI payments over an extended period of time. In the case of a personal loan, banks normally impose an additional interest rate (Penal Interest Rate) of 2% per month.

Since all loans, secured and unsecured, must be repaid on time, the notion of Loan Overdue applies to all of them. However, lenders may have differences in interest rates and penalty fees. Knowing what loan late is, you probably want to know how it affects a person’s financial situation.

What are the Effects of Loan Overdue on Your Credit Report and Other Finances?

Always make your loan EMI payments on time. Your financial situation can suffer if you even miss one EMI. There are many effects on you when you owe money on a loan. To help you understand better, we highlight a few more significant ones. They include:

1. Penal Interest Rate

Before applying for a loan, a consumer should always make sure they have a clear repayment plan. The explanation is that your credit score is impacted by the loan overdue amount, as we previously stated. But that’s not all the lender may also impose penalties if the loan EMIs are late.

I’m sure you’re wondering, how? As you are aware, you must make a fixed EMI payment each month. Therefore, you will be required to pay a late payment penalty in the form of Penal Interest as determined by the lender for each EMI you miss. Depending on the type of loan, this additional penal interest rate may differ from one lender to another.

The penal interest rate is a type of fine imposed by the lender when a borrower cannot make timely EMI payments. No matter how many EMIs you skipped, you will still pay the penalty interest. They charge the loan overdue amount of this penal interest monthly. For instance, the borrower must pay a penalty of 2% on the loan overdue amount for each month of default if the lender levies a penal interest rate of 24% annually.

2. Loss of Security

The loss of your security may also occur if you have taken out a home loan. Or any other secured loan, such as a gold loan, a loan against property. Or a loan against securities (shares, mutual funds, bonds, etc.). Let’s make this easier to understand.

If a secured loan’s overdue balance has accumulated for the last three months, or if the borrower has missed 90 days’ worth of EMI payments, we might classify the loan as a non-performing asset (NPA). In such cases, lenders typically send reminders and 60-day warnings about the Loan Overdue Amount. The lender is free to sell the items you pledged as collateral if a borrower doesn’t pay the loan overdue amount within the notification period. However, there is one crucial point to note: Lenders still need to give a second 30-day notice before the auction.

This notice will include all pertinent information about the auction, such as the asset’s current value (as determined by the lenders’ valuer). Plus the auction date and time, etc. If the borrower believes they undervalued the asset, he or she may contest the auction. After collecting the loan overdue amount, lenders must also return any excess funds (if any) to their clients.

3. Impact on Credit Report

Consider taking out a 20-year home loan and making on-time EMI payments. The first time in your tenure, however, you cannot make your EMI payment on time after two years because of financial strain. They report each transaction you have with the lender to different credit bureaus, and any missed payments will show up on your credit report. Your credit report is not significantly impacted by one late payment. However, if you haven’t paid your EMIs for the past three months, it will be recorded as a non-performing asset (NPA) and will appear as a default on your credit report, which will ultimately have a negative effect on your credit score..

Mention of Loan Overdue because you missed repayments could lead to rejection of your credit applications in the future. This is because lenders always check your credit report to know your past repayment behavior. Even before they give you a loan or issue you a credit card. Therefore, it would be wise to make your loan payments on schedule consistently. You must determine the loan amount based on your need and ability to repay.

Steps to clear Overdue Loan

A person can start acting even before he is, in fact, in default on any payments. He may still have several options to lessen or eliminate the burden of overdue payments, such as:

Step 1: Communicate with lenders

Talking to the lender in advance about any possible payment concerns is best. By changing the payment deadline or enabling the borrower to postpone payments temporarily, they might be able to help the borrower. They can sometimes negotiate an agreement. Make a concession, let them know you can’t pay, and then watch to see whether they accept. It is possible, but it won’t work unless the borrower can convince the lender that they won’t be able to make payments. Although the borrower will lose credit if he settles, at least the payments will have been made.

Step 2: Consolidate or refinance

If you consolidate the loan with a personal loan, it will result in lower interest rates and a smaller monthly payment. Additionally, you will have extra time to repay a new loan. You might obtain a personal loan, for instance, and repay it over three to five years. It could result in you paying more interest if you wait longer to repay, but it also could not. Also, you might easily come out ahead, particularly when repaying payday loans.

To be eligible for a new loan, apply before you fall behind on payments. Lenders might not want to approve a consolidation loan if you are already behind. Where may one get loans? The first step is to apply for an unsecured loan with local banks, credit unions, and online lenders.

Step 3: Personal loans

Using a personal loan to consolidate helps improve loan approval. If a borrower uses his house as collateral, he risks losing it in a foreclosure, which would be challenging for him and his family. Unable access to a personal automobile may make commuting to work and earn a living challenging.

Step 4: Prioritize Payments

Making difficult decisions about which loans to maintain current on and which to discontinue making payments on may be necessary. According to conventional opinion, you should continue paying your home and automobile loans but cease paying your unsecured debts (such credit cards and personal loans) if you find yourself in a tight spot. The justification is that nobody really wants to be kicked out of their home or have their car repossessed. Credit damage is likewise a concern, although it does not have the same immediate effects on a person’s life. Make a list of the expenses and decide carefully on each one. To ensure proper payment prioritizing, give safety and health top priority.

Step 5: Pay late

Although it’s ideal to pay off loans on time. But if you cannot do so, being a little late is preferable to being completely late. The optimal course of action is to make your payment within 30 days of the due date. The credit will not be harmed because late payments are frequently not even recorded to credit bureaus. This gives you the choice to consolidate or refinance their debt.

Read also: Loan Delinquency – What you should know

How do I calculate the interest on a loan overdue?

If you want to calculate a loan overdue, just multiply the amount of the debt by the number of days for which the payment is late, multiplied by the daily late payment interest rate. These interests will definitely be in operation on the date the payment becomes overdue.

Conclusion

Many people take out loans at different points in their lives to cover various financial needs. There might be unpaid balances on these loans if they encounter a financial crisis. The accumulation of credit card debt and skipping EMI payments on current loans would increase financial liabilities exponentially. When the interest on many debts adds up to an unmanageable amount, it’s time to choose a personal loan for debt consolidation.

The employees of Ghana education service can partake in Nagrat online loan application. As we all know, the global inflation and lack of cash flow to cater for various needs is nothing to write home about. Because of a lack of cash flow, you might not readily have money to spend most, especially with unforeseen circumstances. Learn more about Nagrat online loan application, its meaning, requirements, and how to apply.

What is a NAGRAT loan?

The National Association of Graduate Teachers (NAGRAT) is an association of graduate teachers. Besides that, employees of the Ghana Education Service are their members.

The National Association of Graduate Teachers (NAGRAT) offers its members a lending program that doesn’t require manual verification.

What are the requirements for a Nagrat loan?

Before you can apply for a Nagrat loan, there are some requirements you need to meet. They include:

1. You have to be a member of the Association (NAGRAT).
2. Must be a consistent payer of Fund Dues and NAGRAT Dues.
3. The individual must contribute to the Fund Loan Scheme for at least six (6) months.
4. Pick up an IPPD form at the nearby Regional Secretariat and fill it out.

How to apply for Nagrat Loan online

A potential NAGRAT member may easily submit an online loan application.

1. You must first go to the website, www.nagratfund.com.

2. If you haven’t already, upload your records to the site.

3. Add the records of your guarantor to the online portal.

4. Click the “Apply for Loan” button on the dashboard to continue.

5. There, complete the following menu. Give your mandate number, information about your ability to pay the requested amount, and length of the loan. Besides that, provide the information about your affordability.

6. The system will now automatically determine whether you meet their requirements for loans at this point of the procedure.

Note: The system will let you proceed with your request after you are approved.

7. Verification. They will require you to input your Staff ID and receive verification.

Note: They will send the code to your guarantor.

8. Last stage: Hit the submit button and wait for feedback.

Who can be a member of Nagrat?

Only graduates who are employed by the Ghana Education Service (G.E.S), your employer, are eligible to join NAGRAT.

According to NAGRAT’s definition, graduates are persons who have at least a diploma certificate from a recognized institution. Since the younger generation of instructors will receive First Degrees, changing the requirements for membership admission might also be necessary.

Read also: NSS Scheme Ghana – Meaning, objectives, pin code, etc

What is the interest rate on Nagrat loan?

With effect from September 7, 2020, the National Association of Graduate Teachers (NAGRAT) has lowered its interest rates on Fund loans from 14% to 12%. On September 4, 2020, the Union released a statement through its president, Angel Agbe Carbonu. The association has resorted to allowing its members to apply for loans online.

What are the benefits of Nagrat Membership?

There are some benefits Nagrat members stand to gain:

• NAGRAT launches programs to raise the professional standing of G.E.S. graduates.

• NAGRAT supports addressing the unique issues and conditions that G.E.S. graduates face.

• In negotiations, NAGRAT represents its members.

• For the benefit of present and future members’ retirement needs, NAGRAT offers a long-term fund.

• For members who want to purchase electronic goods and household durables at a discount, NAGRAT offers a hire purchase package.

• To assist its members, NAGRAT offers a NAGRAT Fund Loan.

• Under the Auto Loan Scheme, NAGRAT offers automobiles. Members’ comprehensive insurance on these vehicles is updated annually on their behalf.

Read also: Credit Union loans in Ghana – What you should know

Conclusion

Nagrat online loan application is hassle-free. What you have to do is follow the steps listed in this article. However, know that you must meet their requirements to qualify for the Nagrat loan. Besides that, ensure you can repay the loan they offer you so that it won’t affect your credit score.

Money lending and payback systems are a complexity that can take many forms. Especially when significant sums of money are borrowed. They developed loan amortization to provide a clearly defined payment amount at predetermined times. These predetermined payments cover both the principal and interest in the loan, providing a clear picture of the situation. We have simplified loan amortization for your understanding in this post, as well as included everything else you should know.

What is loan amortization?

A loan amortization is a loan with a predetermined payback plan. This structure entails monthly payments that the borrower must make, and it applies to both the accrued interest and the principal loan. An amortized loan’s primary goal is to pay off accrued interest for a specified length of time before moving on to the principal or paying off both at the same time.

In simple terms, it amortizes any loan you take out that has an interest and principal repayment plan. Car or auto loans, personal bank loans, home loans, and other types of loans are examples of this.

How does loan amortization work?

The loan amortization procedure is complicated, but it is simple to understand if you pay attention.

They use the most recent ending balance of the loan to determine the interest rate on an amortized loan. In this approach, the amount of interest you pay changes and is determined by your ability to make regular payments. Any extra payments made during the scheduled periods reduce the principal by the amount of the extra payment. This lowers the remaining balance, which is used to calculate future interest.

This approach motivates you to make extra payments, which reduce the principal once you have paid interest. Because they calculate interest periodically based on the most recent ending balance of the loan, you will pay less interest in this way. Over the life of an amortized loan, interest and principle have an inverse relationship.

Why amortize a loan?

The purpose of loan amortization is to give the borrower a clear image to work with. They make it such that you can pay off the loan in equal installments over a long period. You can, however, speed things up by paying more and lowering the principal owed. This way, you pay off both the interest and the principal at the same time. If you choose to focus entirely on the interest payment, the principal component of your loan will grow, and vice versa. This strategy pushes you to pay both sides of your debt at the same time.

What are types of loan amortization?

The following are the four categories of loan amortization. They are:

1. Full amortization

Paying the entire amortization on this loan would lead to a rise in your outstanding debt being zero at the end of the term. This is the most popular loan repayment method.

2. Partial amortization

They’ll require you to pay a portion of your amortization amount. Every payment you make reduces the amount of money you owe on your loan each month. You will have an outstanding balance at the end of the loan period if you only pay partial payments.

3. Interest only

You would not include any amortization payments during the loan term if you were only paying interest. It instead focuses on paying solely interest, with the principal remaining unchanged at the conclusion of the term.

4. Negative amortization

Negative amortization is less expensive in the short term but more expensive in the long run. This form of loan has lower monthly payments than interest-only loans, but the outstanding principal on the loan grows because of the monthly payment. They add any interest payment deficiency to the total payable loan amount at the end of each month.

Case study of Loan amortization

Putting the four loan amortization types into practice – say you borrowed GH₵200,000 and had a 20-year repayment schedule.

You would have paid off the debt in 20 years if you had used full amortization. If partial amortization, you may still owe some money at the conclusion of the period, but it will be far less than GH₵200,000. You would have paid off the interest if you only paid interest, but the principal of GH₵200,000 would still be due. Finally, negative amortization will almost certainly result in you owing more at the end of the loan term.

Conclusion

Loan amortization is a simple approach that shows you how to pay back your loan. It also encourages your punctuality in adhering to the payment schedule with beneficial interest and increases it if you do not pay on time. It is advised that you stick to a full amortization loan as much as possible, as experimenting with other forms could be problematic.

Other related posts:

Line of credit- Meaning and everything you should know

Debt consolidation loan in Ghana explained

Generally, loans have become a good option to consider whether you share the belief in loans. They have helped many businesses out of chaotic situations because of the cash flow that loans provide. However, the same is the case for individuals. Emergency loans, personal loans, travel loans and other forms of loans have, to a very great extent, pulled people out of financial problems. NBSSI offers loans to businesses.

As you read along, you’ll know more about the NBSSI loans, their requirements, and so on.

About NBSSI loans

It was through an Act of the Parliament of the Third Republic of Ghana (Act 434 of 1981) they established the National Board for Small-Scale Industries (NBSSI). After that they started operating in 1985. They are a non-profit public sector organisation that is under the Ministry of Trade, Industry and Presidential Special Initiatives. 

The Government believed in the sector’s potential to contribute immensely in reducing the high unemployment rate in Ghana. Besides that, they have to develop the human resource and the structures. And also to give MSEs the access to high-quality business development services which promote their growth and competitiveness.

NBSSI has three core services they provide. They are; facilitating access to finance, providing business support services and facilitating technical skills development.

How much did they commit to the NBSSI funds?

Having known about NBSSI Ghana, you would also want to know how much they commit to it. The NBSSI loan program has an initial commitment of approximately GH¢90 million. This comes from Mastercard Foundation and NBSSI. So, this is in line with the government’s support for Ghanaian MSMEs. Besides that, the program will receive additional investment from other donors and institutions.

What are the requirements for NBSSI loans?

1. Proof of business operations

2. Provide your Tax Identification Number

3. Detail of your products and services

4. Show that COVID-19 had affected your business

5. Describe your business such as; personnel, customer, suppliers, etc.

6. Get your business financial details, which include profit-and-loss extract, sales and cash flow statement. You do not need an account to audit or prepare these documents for you.

Other requirements are:

1. The business or enterprise must be a micro, small or medium enterprise.

2. They also support youth-owned or youth-led businesses people within the age range of 18-35 years.

3. Informal enterprises.

4. They offer opportunities to female-owned businesses. And encourage them to apply.

5. The enterprise should be willing and committed to continue maintaining the operation of their business. Especially through the accessing of a loan, which could either be with or without the grant. And also cannot avail the required loan collateral. 

How can I apply for NBSSI loans?

In order to get the NBSSI loan, you must apply for it through the following steps:

1. Visit the NBSSI loan portal (https://ghrecoveryprogram.com) and kick-start your application

2. Thereafter, select the ‘Apply’ button on the page

3. Or you could just visit https://ghrecoveryprogram.com/apply

4. Then fill the NBSSI loan application form

5. After filling the form, they will show you a review page

6. Then review the details you filled and submit.

What is the interest rate for NBSSI loans?

There’s usually an interest rate on every form of loan, be it guarantor loan, travel loan or student loan. The NBSSI loan has an interest rate of 7 percent for the program.

Are there any additional fees on NBSSI loans?

Additional fees on loans help individuals or businesses know the actual amount of loan they’re in for. Besides that, the knowledge of the additional fees helps them know whether to go on and get the loan.

With the NBSSI loan program, they will require a one time processing fee of 2.5 percent of the loan amount. They will deduct this from the loan amount through the bank.

How fast can I get the NBSSI loans?

While getting any form of loan, it’s essential to know when to expect it. This will help you make adequate financial decisions. After applying for the NBSSI loan online, they will review your application. And if you meet all the requirements, they will send you the loan in 2 weeks into your account.

What are the sectors that can benefit from the NBSSI loans?

Not every sector can benefit from NBSSI funds. Their board provided a list of the sectors that are more likely to benefit from the NBSSI.

The following are the sectors that can benefit from the NBSSI funds:

1. Logistics
2. Tourism and Hospitality
3. Technology
4. Food and Beverages
5. Water and Sanitation
6. Manufacturing
7. Commerce and Trade
8. Healthcare and Pharmaceuticals
9. Garments and PPE
10. Agri and Agro-Businesses
11. Services
12. Education

What are the services of NBSSI Ghana?

They offer the following services:

1. Business Development

They provide resources to ease your transition from a startup to a thriving business.

2. Funding

With the NBSSI low-cost funding, they support your business, especially at this time of a global pandemic. Consequently, causing economic challenges around the world. Because of this, many small businesses are still trying to survive the economic strains the pandemic caused.

3. Kaizen

They use the Kaizen tool to assess the status of an enterprise. Besides that, also use it to identify gaps and opportunities. Thereafter, they develop effective activities to ensure the optimum operation of an enterprise. Because of this technique, there have been successes of micro, small and medium enterprises. They do so by eliminating waste, reducing lead time, ensuring best quality with lower cost and implementing the best standards.

What are the NBSSI contact details?

For more enquiries, you can contact NBSSI through:

1. Address: Post Office Box MB85, Accra
2. Telephone number: +233 (0) 302 747 777
3. Email addresses: info@nbssi.gov.gh nbssied@gmail.com

Conclusions

Some companies are yet to recover from the havoc the dreaded COVID-19 has caused them. Therefore, the governments of many countries established fund programs to help startup-businesses. Also, after the pandemic, things haven’t gotten back to normal economically. Many people lost their jobs, companies closed off while others resorted to working from home. Because of this, there have been programs to help sustain and bring businesses back to normalcy. However, some businesses get business loans to keep delivering services to their customers.

Owning a car is a necessity these days, and money is usually scarce. So it is difficult to buy a car in Ghana. And lack of cash makes people get loans such as; travel loans, mortgage loans, quick loans, etc. Buying a reliable second-hand car is no simple task in Ghana. However, there are ways you can buy one beforehand and later pay back through car loans in Ghana. For this to happen, the seller and buyer have to agree upon these terms of purchase. In the rest of this article, we’ll see details on how to get the car loans and the financial institutions that offer them here in Ghana. 

What you should know about car loan in Ghana

Vehicle and Asset Finance (VAF) is a medium-term facility for salaried and non-salaried customers. They help these customers to purchase assets, such as vehicles of various types and power generators.

Car loan is a type of loan or financial aid for majorly salaried individuals, who intend to own a car. It may limit them because of an insufficient fund for the particular car they have in mind. In Ghana, people make a lot of car savings. And there are loan companies available to meet the needs of the people. In case you have a dream of owning a car, you can outlive that dream today. 

When you are looking for a car to buy in Ghana and you do not have sufficient money. You can approach various financial institutions that major in loans to people who want to purchase cars.

What are the requirements for car loans in Ghana?

Before you apply for any loan, car loan inclusive. What first comes to your mind is what and what do I need for the loan. The knowledge of the basic requirement is the first step that confirms your eligibility for the loan. Below are the requirements for car loans in Ghana:

1. Applicants must be employees who earn a salary worker.
2. Maximum amount of GHC150,000.00
3. Maximum facility tenor is 48 months
4. Vehicle must be brand new
5. A complete loan application form
6. Signed customer’s request letter
7. Copies of most recent pay slips of 6 months
8. National identification
9. One passport photograph

Note: To apply for First bank car loan, you can download the first bank car loan form. Fill the form correctly, upload the documents they require, and submit at the nearest first bank branch.

What is the minimum amount for Car loans in Ghana

It’s important to know how much one can borrow for a car loan in Ghana. By knowing the minimum amount, the customer will plan on what to do with their funds. For Car loans in Ghana, there is no actual minimum loan amount. Probably you can borrow all you need to buy the car.

Meanwhile, some savings and loan companies have limitations to the maximum amount you can borrow. This is regarding your salary scale or credit score. But there is no limitation to the minimum amount.

If you want to buy a car on credit in Ghana with a loan, this is what you should know about the process:

1. Approach a credible financial institution

There are credible financial institutions that offer affordable car loans. Once you apply for the loan, the banks will assess your eligibility and they will decide on whether you qualify for the loan you are asking for.

2. Some car dealers will allow you to buy a car now and pay later in Ghana

They will require you to have a minimum percentage of the total price of the car. For instance, a  car dealer may decide that you should pay 50% of the total price of the car first. So if the car you want to buy costs 1 million cedis, you will pay five hundred thousand cedis at the time of purchase.

3. You need a written agreement on the time limit for the repayment

Some dealers give the buyer an option of negotiating the time that is convenient for them. While some others fixed a time of repayment for the buyer. Go for the dealer whose terms you are comfortable with.

Banks that offer car loans in Ghana?

There are loan companies and banks that offer car loans in Ghana. They include: 

1. Universal microfinance
2.  Izwe savings and loan Kotobabi
3. Advance Ghana saving and loan, Newtown branch 
4. Societe Generale 
5. Stanbic Bank Ghana 
6. First bank Ghana 
7. Republic bank Ghana 
8. Calbank 
9. Microfinance and small loan centre (MASLOC)
10. AIDEZ small project international and so on.

What are the things I should expect for car loans in Ghana

Before applying, you ought to be aware of the car loans you are applying for. This allows you to know what you ought to expect from the loan company. Though this varies regarding loan companies but applies to most of them.

The following are the things to expect:

1. GHC100 as the minimum overdraft limit
2. There is no limit to maximum overdraft
3. Monthly repayment of used limit or 30 days of a clean-up cycle
4. 60% advance of your disposable net monthly salary
5. Life insurance credit premium of 0.84% on approved limit against permanent disability and death
6. Interest depends by overdraft used each month
7. Facility fee of 2% charged on agreed limit and at each renewal

How can I get a Stanbic car loan?

Stanbic Bank Ghana may offer you a car loan just because you already have an account with them or have worked for them. You can follow the steps below for the application.

1. Work for Stanbic profiled organization
2. You must earn a minimum salary of GHS400 per month
3. Minimum salaried account relationship of:

• One month – Workplace Banking Scheme companies/organizations
• Three months–non-Workplace Banking Scheme companies/organizations
• Customers with salaried Stanbic Current Account

You need to fill in a Personal Salary Advance application form and attach the documents below:

• Previous statement of account
• Pay slips from the past three months
• They will approve overdrafts subject to a positive reference from the credit bureau.

Calbank Auto Loans

They make car loans available to individuals, consultants, and workers who earn salary with recognized working institutions to get a car for personal or company use.

The following are the features of Calbank Auto Loans:

1. Loan Repayment: Annuity payment Method
2. Duration: 60 months or lesser.
3. Personal Guarantee of applicant
4. Provident Fund, if any.
5. Vehicle registration and insurance in the joint names of CalBank and client.
6. Debt Burden: Not over 45% of income.
7. Pricing: CalBank Base Rate + Agreed Margin.
8. Arrangement and processing fees: 3%.
9. Maximum Loan: The Bank gives up to 80% of the worth of the vehicle.
10. Readily available credit timely.
11. Flexible terms of repayment.
12. A team of dedicated account managers shall give prompt advisory services.

How can I be eligible for Calbank loan?

Before you can get a car loan from Calbank, there are certain requirements you must meet. They are;

1. Minimum Salary: GHS 500.00.
2. Age: 18 -53 years.
3. Employment Records: minimum of 6 months or at the discretion of the credit manager.
4. Account History: Bank Statement of six months from clients with account relationships with other Banks.

Note: They typically notify clients on monthly loan repayment via our CalBank Alert.

What are some benefits of car loans in Ghana?

The benefits of applying for car loans can be astounding. You may wonder what benefits you could get if you get a car loan.

The following are some benefits of car loans; they include:

1.  Suitable terms
2. Self-service
3. Currency Options
4. Flexible repayment duration
5. Competitive interest rate

Conclusion

A car loan in Ghana can be yours for a very reasonable rate. That dream of having your own car could become a reality with a car loan in Ghana. Because they repay the loan through a monthly installment from your salary. You need to be an employed individual. However, many financial institutions are available in Accra Ghana, to cater to this financial limitation regarding car purchases.

Related articles:

How to get a loan from CalBank

Loans in Ghana – Meaning and types of loans you can get

How To Get A Home Loan Or Mortgage In Ghana

Student loan Trust Fund is a financial institution that majors in offering loans to students to foster their academics. You may be a student with the challenge of paying tuition fees, textbooks accommodation, feeding, and general wellbeing. The thought of getting admission to a school with little or no financial aid scares you. This loan solves the financial problem you might have in running your school program. In this article, is the meaning of student loan trust fund, the eligibility, and how you can apply.

About Students Loan Trust Fund

The students’ loan trust fund offers loans to students who are in tertiary institutions in Ghana. Also, it could be students who are taking programs or degrees in tertiary institutions. It must comprise students who are already on admission for undergraduate programs.

You can locate the agency at  47, 3rd Crescent Asylum Down, near Highgate hotel in Accra, Ghana. The Trustee Incorporation Act 1962, Act 820, laid the foundation for the establishment of this agency in December 2005.

Their principal objectives are to provide financial help for the proper management of the trust for the benefit of students and to help promote the national ideals of Articles 28 and 38 of the 1992 constitution. They also have offices in major institutions.

The functions of these offices include:

1. Provide avenues for student inquiries.
2. Pickup and submission points for loan application forms.
3. Loan application verification.
4. Liaise between the loan applicants and SLTF.
5. Disseminate essential information to students in a timely manner.

How can I become eligible for the student loan trust fund?

You must be eligible or meet the requirements for you to get any form of a loan. The programs and institutions have a higher hand in making students eligible for the loan. This is because Ghana National Accreditation Board can not vouch for all tertiary institutions in Ghana.

To access the loan, the following occurs:

1. They will base consideration on needy applicants.
2. Ghana National Accreditation Board must accredit the school, which must be a tertiary institution.
3. Loans are only for Ghana citizens who are residents and are schooling in Ghana.
4. The National Accreditation Board must accredit the programs the students offer.

Note: The borrower will only apply the loan granted from the Fund to cater for expenses, tuition fees, the cost of boarding, books, equipment, lodging, and other reasons that the borrower may need for his/her studies. You can click to get more information on other student loans in Ghana and how to apply.

How do I apply for the student loan trust fund?

Every form of loan has a way to apply for it. Apart from being eligible, it also helps you know the documents necessary for the application process. Below is how you can apply.

You’ll need the following to apply for this loan:

1. Open an Email 
2. Register for an e-zwich card.
3. Have a guarantor.
4. Make your registration at any SSNIT office for a social security number
5. Telephone number of both applicant and guarantor
6. You must be a student of your school legally.
7. A personal guarantor who is an SSNIT contributor, religious body, MMDA, or corporate body.
8. Two passport sizes

Note: We can also use the Social security reference number to apply for the loan.

Have you heard of student loan statements? Before you apply for a student loan, you need to read the student loan statement.

What is the interest rate of the student loan trust fund?

The knowledge of the interest rate on every loan helps you to know whether you can payback. The interest rate on the student loan trust fund is low. Besides that, they make the interest rate low so that money will be of value to the students. Inflation can contribute to the interest rate of this loan. Basically, the interest rate is 12%.

Are there additional charges for students loan trust funds?

You may wonder if there are additional charges on students’ loan trust funds. Student loan trust funds do not have additional charges.

How fast can I get the student loan trust fund?

It is important to know how fast you can get this loan. This helps you know when to expect the money and place your priorities properly.

Meanwhile, applicants for student loan trust funds should expect their loans within 2 weeks. After successful submission of the completed application form. Hence, the application form for the loan must be complete and all relevant supporting documents attached to the application.

What is the right period to repay the student loan trust fund?

Getting a loan is good, but repaying it with no further charges is better. It is always advisable for applicants to pay off their loan earlier than the repayment period. This helps to prevent the interest charges attached to the loans when overdue. 

How do I repay my student loan trust fund?

It is essential to know how to repay your loan after borrowing it

This helps you to make plans earlier, so you’ll have enough time to repay the loan. Plans like; which means or strategy will be more convenient for you are really cool to explore.

You can make your loan repayment through:

1. Cash or Cheque repayment may be outright or by installment at the head office.
2. Repayment by cheque at the zonal offices
3. Monthly deduction (mandated) from the borrower’s salary by the employer.
4. Your repayment can be at any branch of the following banks (partner) quoting clearly your Social Security Numbers (SSN):

• Ghana Commercial Bank (GCB) through Smartpay
• Ecobank Ghana Limited (EBG) through E-collect
• National Investment Bank (NIB) with a customized students loan trust fund and pay-in-slip

Note: The condition for repayment is not dependent on whether you have a job, but it depends on exhausting the two-year grace period.

What are the various modes of repaying the student loan trust fund?

The modes of repayment of the loan make it easier and smoother for the borrower during repayment. Because of this, borrowers have various options to choose from as a means of repayment of their loans.

Note: Borrowers can go to the head office of the SLTF to make payment at 47, 3rd Crescent Avenue Asylum Down, near Highgate Hotel Accra, Ghana. 

You can repay the loan through the following modes or platforms, clearly stating your Social Security Number (SSN):

1. By mobile money: Dial code *737*206#. Then, follow the instructions to make payment.
2. MyGhpay: by visiting the website: www.myghpay.com or download the myghpay app on Google Play Store.
3. Register or login. Click on the Students loan trust fund logo. Then, follow on-screen prompts to make your payment with your MasterCard, Visa, or Mobile money.
4. GT Collect: you can make payment at any GTBank branch across the country, using customized pay-in-slip.

Do you intend to study abroad? Get information on how to apply for an international student loan.

What are the sources of funds for the student loan trust fund?

Although some financial institutions might not feel comfortable sharing the sources of their loanable fund publicly. Also, they have made known the sources of their funds from which they disburse loans to students.

The sources of loanable funds for the student loan trust fund include:

1. Up to 10% of inflows of money in the Ghana Education Trust Fund.
2. Willful contributions will be tax-deductible. 
3. Collection of resources from Ghana’s international partners interested in the advancement of tertiary education.
4. Corporate sector contributions shall be tax-deductible. Which could be up to the equivalent of 0.5% of the company’s actual profit before tax.
5. The loans from Social Security and National Insurance Trust (SSNIT).

Read also: Banks that give student loans in Ghana

Conclusion

After the stress of gaining admission into the tertiary institution. Students running undergraduate programs have financial difficulties. These financial difficulties prevent them from reaching their potential in tertiary institutions. With the students’ loan trust fund, you have the financial shoulder to lean on throughout your academic years. Your tertiary education’s full potential is up and running financially with this loan. No need to worry about finances anymore.

Taking out a new loan to pay off one or more outstanding loans is known as loan refinancing. Borrowers typically do this to take advantage of lower interest rates or to cut their monthly payments. Taking out personal loans to consolidate debt can positively impact your finances and help you stay debt-free.

However, if they have approved you of a personal loan and have made on-time monthly payments, consider refinancing it.

If your credit score has improved to where you’ll be offered a rate decrease to compensate for obligations and the cost of obtaining the loan, it’s a sensible choice.

What is Loan Refinancing?

A borrower can swap their existing debt obligation for one with better terms by refinancing their loan. Through this procedure, a borrower obtains a new loan to settle an existing obligation, and the new loan conditions replace the terms of the previous loan. Because of this, borrowers can refinance their loans to obtain terms with lower monthly payments, longer terms, or more convenient payment schedules.

Most consumer lenders who provide conventional loans also provide these choices. However, refinancing loans often have slightly higher interest rates than purchase loans for things like mortgages and auto loans.

When is the best time to refinance your loan?

It’s cool to know the best time to do it:

1. Better credit score

Improving your credit score is one approach to qualify for a cheaper interest rate on your personal loan. If your credit score has improved since you took out your loan, it may be a good time to refinance.

2. You want to change the rate type that is currently in use

A personal loan with a variable interest rate makes it difficult to budget for monthly installments. You can move from a variable to a fixed rate by refinancing your loan. It enables you to make monthly payments regularly.

How to refinance a personal loan

1. How much money do you need?

When you refinance a loan, you’re replacing an old one with a new one with altered repayment terms. Find out how much money you’ll need to repay your current loan. You can also inquire whether any prepayment penalties will outweigh its benefits.

2. Check your credit score and report

Before you contemplate refinancing your loan, ensure you’re eligible for a lower rate than the one you’re presently paying. It might not be worth it if the new interest rate isn’t significantly lower. Check your credit score instead to see if there is a difference.

3. Do your research

For refinancing personal loans, doing your homework is key. It’s worthwhile to investigate what different lenders offer and their requirements. You should also consider the length of your repayment period; a new loan with a lower interest rate isn’t always beneficial if you’re making payments for a longer period.

4. Compare refinance rates

Always compare rates it could take and pay close attention to each one. To compare major features and interest rates, make a table. After that, select what’s best for you based on your research and discussions with the lender.

Advantages of refinancing a personal loan

1. Better interest rate: A higher credit score may not only help you get a better interest rate on a new loan in Ghana. But it may also help you receive lower rates on other transactions.
2. Faster loan repayment: You can refinance a personal loan to gain a shorter term if you’re comfortable with higher monthly payments and want to pay off your debt sooner. It lowers the cost of the loan’s interest payments.
3. Extend your loan payback period: If you’re having trouble making timely payments, extending your loan repayment period may help you better manage your monthly payments. 

Disadvantages of refinancing a personal loan

1. Payment of extra fees: When you get a new loan, they may require you to pay additional lender fees. And this might reduce the benefits of refinancing. To assist you to make the greatest financial decision, ensure you understand the terms and circumstances of your personal loan refinance.

Conclusion

You could consider a refinancing option on your personal loan. However, you need to be careful and with clarity when choosing to refinance other sensitive loan options, like a mortgage. Don’t forget that repayment of any loan you get must be essential to you. This is because defaulting loan repayment stops not only lenders from offering you a loan in the future. But it also affects your credit score and could make credit bureaus blacklist you.

Other related posts:

Line of credit- Meaning and everything you should know

Loan application fee – Meaning and special concern

Type of loans in Ghana you should know

A loan extension might just be the best option to try to scale through your debt more comfortably. As a borrower, you might find it difficult to repay your loans comfortably. Meanwhile, you may have planned and scheduled your income to repay your loans. However, unforeseen circumstances might just occur and spoil all your plans. So, this is where you have to apply the loan extension option. Read through this article to learn more about loan extension and how to qualify for it. 

What is Loan Extension?

An agreement between a lender and a borrower to postpone the debt’s maturity date is known as a loan extension. It is an agreement that is most frequently utilized when a borrower is behind on payments and can adjust the loan payment schedule to get the borrower back on track.

How does Loan Extension work?

In general, a loan extension will let you miss a fixed number of immediate installments, usually just one, and add them to the loan’s rear end instead. Most times, this results in an extension of the loan’s maturity date by the number of late payments. It’s crucial to realize that even though you won’t be required to make payments during the brief grace period, interest will still accumulate daily.

How do you qualify for a Loan Extension?

Each lender will have its own requirements, but you’ll likely need to show them that your circumstances were transitory. For instance, if you had a sizable, one-time medical bill or a significant car repair. Additionally, you will need to show the lender that you are ready and can continue making payments once they resume.

Many lenders have policies that limit the number of extensions you can receive during your loan. Again, they may need to know if you have a history of on-time payments before they consider giving you a loan extension.

Some demand costs for extensions, which can range from a flat fee to a percentage of your unpaid balance. Before accepting an extension, inquire about any fees with your lender. Decisions regarding loan extensions are ultimately up to the lender.

5 Steps on how to request a Loan Extension

The best strategy for overcoming your financial difficulties is to take proactive action when you need some breathing room from your lender. So, ask your lender for an extension. The following is how to request a Loan Extension:

Step 1 

To get the customer service phone number for your financial institution, consult a recent balance statement from the loan.

Step 2

To learn more about the procedure for submitting a loan extension request, contact the financial institution. To make sure that you submit the request in time to skip your next payment, if applicable, inquire about the timing of your extension request in relation to the due date of your next payment. The process could be started over the phone, or you might access an online request form or download the form from the bank’s website.

Step 3

Fill out the application to request an extension. The form often asks you to specify how many payments you want to miss, as well as your account number, name, and full contact information. Date and sign the document. To substantiate your claim of financial hardship, the bank may also ask for references, details about your monthly income and expenses, and copies of recent bank statements.

Step 4

Send the paperwork to the financial institution in time for the bank to decide in time for you to miss your next payment if you so choose.

Step 5

If you don’t hear from the bank regarding the extension, get in touch with them before your next payment is due to find out how things stand with the deferment.

What else should you know about Loan Extension?

Keep in mind that your interest may change due to a loan extension. As was previously noted, most auto loans have simple interest rates. So, delaying your due date may impact the total amount of interest you pay over the course of your loan.

Conclusion

Finally, it’s critical to realize that extending a loan is not always the best course of action. However, given that the majority of us have financial blips from time to time, it is a possibility for someone looking for relief after a brief period of suffering. It is better to have a loan extension than to fall victim of loan default.