Reviews

Getting a loan from a financial institution around you could be the right thing to do at most times. This is in bid to solve the pressing needs you might face at a particular point in time. Speaking of needs you already know, there are even some unforeseen circumstances that could require more financial attention from you. And when you get into such a situation, the money on you might not mean much to help you out. Therefore, a personal loan, business loan, mortgage loan, etc could become a good option to fall back on. About Best Point Savings and Loans, their products, requirements, etc are all-inclusive in this article.

About Best Point Savings and Loans

They formerly incorporated Best Point Savings and Loans (BPSL) Limited as Lucky Savings and Loans Limited. But later on, they incorporated it on September 4th 2012 under the Companies Act 1963 (Act 179).

However, they changed the name on January 29, 2013. They certified it to start business on October 8, 2013. 

Bank of Ghana licensed BPSL on December 2nd, 2013. So that they will provide savings and loans services under the Non-Bank Financial Institutions Act, 2008 (Act 774).

The company has two major products which are; loan products and depository products.

What are the Best Point Savings and Loans products, features and requirements?

Best Point Savings and Loans have two major products, which are; loan products and depository products. Some of their products are:

1. Savings Account

Features

1. Less cumbersome account opening procedure
2. Minimum opening balance is GHS5
3. Minimum operating balance is GHS10
4. You need a minimum balance of GHS to qualify for interest
5. Attractive Interest Rates
6. They calculate interest daily and applied monthly
7. Up to four withdrawals per month

Requirements

1. Valid ID Card
2. 1 passport picture
3. Get a utility bill within 3 months
4. Bring 1 reference from a current account holder. Must be from a reliable Bank or Savings and Loans Company or Letter from employer.
5. Resident permit (for foreign nationals)

2. Current Account

1. Less cumbersome account opening procedure
2. Minimum opening balance is GHS10
3. No minimum operating balance
4. Access to a cheque book
5. No Commission on Turnover (COT)

Features:

Requirements:

1. Valid ID Card
2. 1 passport picture
3. Present a utility bill within 3 months
4. Provide 1 reference from a current account holder. Ensure it’s from a reliable Bank or Savings and Loans Company or letter from employer.
5. Resident permit (for foreign nationals)
6. Resolution from the Board
7. Business registration documents (Businesses only)

3. Fixed Deposit Account

Features:

1. Less Cumbersome procedure
2. Minimum investment of GHS1,000
3. The terms available are 30 days, 91 days, 182 days and 1 year
4. They issue a certificate of investment
5. Attractive interest rate
6. They calculate interest daily

Requirements:

1. Valid ID Card
2. 1 passport picture
3. Get a utility bill within 3 months
4. Resident permit (for foreign nationals)

4. BestKids Account

The features of BestKids Account are:

1. Less cumbersome account opening procedure
2. Minimum opening balance is GHC5
3. The minimum operating balance is GHC30
4. Minimum balance for interest is GHS30
5. Very Attractive interest rate
6. They calculate interest daily and paid monthly
7. Up to four (4) withdrawals per year

Requirements

1. Valid ID Card
2. Present 1 passport picture of the child and parent or guardian
3. Provide a utility bill within 3 months
4. Proof of date of birth of child
5. Get 1 reference from a current account holder. Also from a reliable Bank or Savings and Loans Company or Letter from employer
6. Resident permit (for foreign nationals)

5. Susu Account

Features of Susu Account are:

1. Less cumbersome account opening procedure
2. Minimum opening balance is GHS1
3. Access to a free Pass Book
4. Personal Field Banker
5. Unlimited withdrawals
6. Lower interest on susu loans
7. Instant Confirmation of daily deposit
8. Minimum daily contribution is GHS1
9. You need a minimum contribution of 2 months to qualify for a loan
10. Minimum loan amount is GHS200
11. Loan maturity profile:

• GHC200 – GHC5,000 for 1 – 6 months
• GHC5,000 – GHC10,000 for 8 months

Requirements:

1. Valid ID Card
2. 1 passport picture
3. A utility bill within 3 months

6. Sika Dua

This is a long-term savings account.

Features:

1. Less cumbersome account opening procedure
2. Minimum account opening balance is GHS5
3. They can allow further deposits of any amount to grow your account. But that comes after initial deposit of GHS5
4. Very attractive interest rate
5. They calculate interest daily and applied monthly
6. You can only withdraw once every 6 months

Requirements:

1. Valid ID Card
2. 1 passport picture
3. Get a utility bill within 3 months
4. Have 1 reference from a current account holder with a reliable Bank or Savings and Loans Company or letter from employer
5. Resident permit (for foreign nationals)

7. Auto Loans

You can use this type of loan to buy a private and commercial vehicle. But it is a short to medium term loan.

Features:

1. You can use it for a new or used vehicle and it could be up to 5 years
2. Minimum deposit of 20%-50%
3. Term: Up to 60 months
4. All applicants must be within 55 years
5. You must be the user of the vehicle to apply
6. You must insure the vehicles comprehensively
7. The life insurance will cover for death or permanent disability
8. Competitive interest rate
9. Less cumbersome procedure
10. Quick turnaround time

Requirements:

1. Valid National ID
2. Driver’s License
3. Two (2)guarantors
4. Have at least two (2) years of driving experience
5. You must meet their account opening requirements if you’re a non-account holder
6. They may not need security

8. Salary Loans

Both public and private institutions’ employees have this loan offer.

Types of the salary loans:

1. Employee Loan Scheme
2. Government/Public Payroll Employees
3. Private Company Employees

Features of the Salary loans are:

1. You must be between the ages of 18-55 years to apply
2. Must be a confirmed staff
3. Term: Up to 36 months
4. Debt Service Ratio: Maximum 40%
5. Competitive interest rate
6. Less cumbersome procedure

Requirements of the Salary loans are:

1. Valid National ID and Staff ID
2. Last 3 months’ pay slip
3. Employer undertaken
4. 1 guarantor
5. Where applicable, they require you to receive salary through BPSL
6. They may require security

9. Import Financing

Customers in the import business have this special offer. They can use it for duty payments, payment for imported goods or transport cost. 

Features:

1. The term is up to 12 months
2. Competitive interest rate
3. The amounts are flexible so that all levels of business can get it
4. Quick turnaround time
5. Less cumbersome procedure

Requirements:

1. Valid National ID
2. Proof of import documents
3. Applicant must meet our account opening requirements
4. They may require security

10. Church Loan

Churches can get this loan for projects. And they could be buildings, equipment like musical instruments, generators etc renovations, vehicles and equipment.

Features:

1. Less cumbersome procedure
2. The term could be up to 36months
3. Competitive interest rate
4. Multiple purpose
5. Tailored repayment terms
6. Quick turnaround time
7. Church registration documents
8. At least6 months bank statement
9. Church constitution (if any)

Requirements:

1. Resolution from the Board
2. They may require security
3. Financial statements

11. SME Loans

This contains different short to medium-term loans. They specially designed it for Small and Medium Enterprises to meet many financial needs. And this includes; working capital, projects, business expansion, etc.

Features:

1. Less cumbersome procedure
2. They have flexible amounts that will suit all business levels
3. Quick Turnaround time
4. The term could be up to 60 months
5. Competitive interest rates
6. Flexible repayment terms

Requirements:

1. Provide the identity and proof of address of your directors or promoters
2. Identity and proof of address of entity
3. Board Resolution
4. Company Registration documents
5. Provide valid financial statements for the last 3 years
6. If you’re not a customer, get a 6 month bank statement
7. They may require security

What are the Services of Best Point Savings and Loans?

Best Point Savings and Loans have some services they render to customers. And customers who are not yet aware of these services might be interested in those services. 

They are:

1. SMS Alert

This service notifies their customers about every transaction that happens on their accounts.

2. Cash Pick Services

Call them or better still, plan for them to pick your money for you.

3. ATM

They give their customers 24 hours’ access to their accounts, even in times of emergency.

Other electronic services they provide are:

• Western Union Money Transfer
• MoneyGram
• Vigo
• Airtel Money
• MTN Mobile Money
• Tigo CashBest Point Services

What are the contact details of Best Point Savings and Loans?

If you have some complaints, or you need to make inquiries. You can reach out to Best Point Savings and Loans representatives through the following contact details.

1. Contact Address 

Head Office: Old Peace Fm Building, Achimota Mile 7, Off Achimota Ofankor Road.

2. Postal Address

Post Office Box CT 10191, Cantonments, Accra

3. Telephone Number: (233) 303932990-4

4. Email Address: info@bestpointgh.com

Conclusion

With loans, you have the lifeline to access funds to make urgent financial expenses. Always ensure you get a loan you can repay. This is because you wouldn’t want your financial situation to get worse. Besides that, paying off your debts will let you save some money you wouldn’t spend. Letting you keep some reasonable amount of money for future use. Best Point Savings and Loans have loan offers of various forms for the people of Ghana. And they designed these offers to meet the needs of most people with their various financial capacities into consideration.

Other related articles:

Multi Credit Savings and loans – What you should know

Direct Savings and Loans Review – What you should know

Fido Lending Services Ghana – What you should know

These days, accessing quick loans have become a lot easier than before because of the advancement in technology, cyber-crimes checks, and security. As a result, many lenders no longer require collateral before disbursing funds to borrowers. Currently, anyone with a mobile phone can easily access mobile money loans in Ghana.

As you read along, you’ll see the mobile money loans you can access in Ghana and their various requirements.

What is a mobile loan?

A mobile loan is any loan someone applies for using a mobile phone or device. For example, when you use your smartphone to borrow GH₵300, we know it as a mobile loan.

Mobile network providers usually offer these mobile loans to their subscribers. However, borrowers may even get as little as GH₵300 to cover a credit card’s minimum payment. It helps people to borrow small amounts of money to enable them to pay their bills on time.

Meanwhile, those in rural areas that are hard to reach with no banks are now being financially included. They are enjoying the benefits of financial services, even in their remote areas. Mobile Money is very popular because of the high usage of mobile phones. Also, the use of mobile money has full support from the Ghanaian Central Bank.

What are the requirements for mobile loans?

There are always some requirements to meet when applying for loans. The requirements for Mobile money loans vary across lenders. However, the following requirements are not generally accepted across all mobile money loan providers. But some providers could need any of them.

They are:

1. The borrower has to be 18 years old and above
2. You must have an active account number
3. Live in an area where there is a steady network
4. Have a source of income; preferably a job
5. Social security number
6. Contact information or your home address
7. Phone number and email address

Note: Some lenders may not need all the requirements mentioned above. Besides that, a lender could need something else that is not on the list above. Therefore, stick to the requirements your lender asks you to meet.

Is it possible to get a mobile loan with bad credit?

You cannot get loan approval with bad credit. Meanwhile, they consider factors like credit scores when determining your loan eligibility. The average applicant’s vantage score is only GH₵550.

How can I apply for a mobile loan?

Modern technology has made the lending process for people who like a paper-free process easier. All you need to apply for a loan is just your smartphone. Below is a guide when applying for a mobile loan:

1. Download the app
2. Input your personal information
3. Attach required documents
4. Submit and wait for review 
5. You will receive an approval message
6. They will send the money to you without you visiting the bank.

How fast is a mobile money loan?

Mobile money loan is usually available 24/7. It does not take time to apply. The time frame for the application is between 5 to 10 minutes on average. When they approve of you, you get an instant loan decision. They will then disburse the money into your bank account within one business day.

How safe is it to apply for a mobile loan with a phone?

Normally, people doubt the safety of their personal details while making loan requests through the internet. They’re already weary of being scammed by internet fraudsters. And whoever has fallen victim to an internet scam would do anything possible to avoid its repetition. That is why most people prefer to visit a lender in person to apply for a loan.

So, ensure that your lender has the right technology to protect your personal details. With that, you can be confident before submitting an application with your mobile device.

Therefore, you can do this by looking at the company’s website address. Sites that are secure always start with ‘https’ rather than ‘http’. Also, check for a green padlock in the URL address bar. The presence of this padlock shows the site is secure and safe. You can confidently apply for a loan using your smartphone.

What are the things to note when downloading and using an app for mobile money loan?

Considering the notable increase in online fraud and theft. There are a lot of things to consider before downloading or installing an app.

They include:

1. Research thoroughly about the lender before you download the app. Install apps only from trusted sources. Also ensure the company is a legitimate lender. 

2. Download the app only from an established app store, for example, Google Play store and Apple’s App Store.

3. Read and understand app permissions thoroughly before accepting them. Read the information on what the app wants to access. It is only then you could grant it permission.

4. Never use public Wi-Fi when operating your mobile loan site or app. Always disconnect from public Wi-Fi networks. It is preferable to use a password-protected network instead.

How often do Ghanaians use mobile money loans?

There’s always a need to know if people patronize a particular loan offer before getting it. In Ghana, one out of five people use mobile money services to receive and send money on their mobile devices.

Some examples of mobile money in Ghana are Airtel Money, Vodafone Cash, Togo Cash, and MTN Qwik loan. They can use them in making payments for utility bills, school fees, and shopping.

Also, they use mobile money for international remittances. And this allows people to receive transfers directly into their accounts.

How do mobile money loans work?

Mobile money loans help customers to manage their emergency cash needs as fast as possible. The loans are affordable and instantly disbursed out to customers’ bank account or mobile wallet.

The customers will later pay the instant loans back either in 30 days, 60 days or 90 days through post-dated cheques. Or they can make a mobile money transfer to the lender’s mobile wallet.

What are the pros of mobile money loans?

There are many benefits of mobile money loans. When you apply, you stand to gain:

1. Competitive interest rates.
2. Processing of loans is quick.
3. Loan disbursement is quick and easy.
4. They grant cover to your credit life.
5. You can apply for a mobile loan anywhere any time.

What are the cons of mobile money loans?

As much as mobile money loans are beneficial. There are a few downsides with the use of mobile money. These downsides include:

1. You must have a smartphone.
2. If you are struggling with basic functions on a smartphone. You may not know how to apply for a mobile loan with the smartphone.
3. Your personal information may be at risk with some apps.

Conclusion

You surely can’t overstate the convenience that comes with mobile money loans. No more waiting in long queues at banks to get a travel, business, consolidation or guarantor loan. Possession of a mobile phone is only what you need to kickstart the journey of getting the loan you want. Besides that, you can apply for the loan at any time of the day. And you wouldn’t need to visit any bank or lender to get the loan.

However, prompt repayment of the loans according to your agreement with your lender is imperative. This is because if you can’t repay the loan, they wouldn’t give you another one in the future.

Getting a loan in Ghana could be an uphill task, notwithstanding the reason you need it. This uphill task could be because of some requirements you cannot afford. But sometimes the lenders’ processing fee or time could make getting a loan very difficult. However, the demand for collateral by lenders has made most borrowers back off from getting the loans they need. As you read along, you’ll know more about loans in Ghana without collateral and more.

What is a collateral loan?

They often call a collateral loan a ‘secured loan.’ This means that you have to guarantee the loan by something you own. So if you can’t pay your loan back, the lender may claim the collateral. And this could be any of your assets; whether it’s a car, savings account, piece of jewelry, investment portfolio, or your home. 

Therefore, the opposite of a collateral loan is ‘loan without collateral.’ Where lenders do not require you to guarantee the loan with something you own. That sounds really cool, doesn’t it?

What are the loans without collateral in Ghana?

There are some loan offers you can get from lenders in Ghana. But because of the advancement in technology, you’ll most likely access them online.

The following are the loans in Ghana without collateral:

1. Zidisha Loans

Zidisha loans operate through the internet as a peer-to-peer loan company. They help individuals to raise capital for their projects and businesses. This becomes possible by the willingness of other individuals to lend money to entrepreneurs who need the money urgently.

Zidisha offer loans of up to GH₵50,000 without collateral. And they have made a name for themselves because of this magnificent offer.

The only things they require are:

1. Your objective 
2. Your target market
3. Repayment plan
4. A compulsory GH₵40 payment for loan processing.

2. Carbon Ghana

They are one of the top online loan providers in Ghana. You can get a loan from them regardless of your economic or social category. Also, you can easily make your loan requests, processing and payment through their android mobile app.

They require you to provide: 

1. Bio-data of the applicant
2. Employment details
3. Passport and the amount you wish to borrow.

The disbursement of money is quick once approved. The loan amount ranges from GH₵5 to GH₵1,000 without collateral. One important thing to note with Carbon Ghana is that there is no extra charge for delayed repayment.

3. MTN Qwikloans 

This MTN’s loan offer is very popular in Ghana with over 70% mtn users. It is only available to MTN customers who have mobile money wallets. Moreso, with the mobile money wallet, you can get up to GH₵1,000 worth of loan within 5 minutes. They only require you to be an active MTN mobile money user. Besides that, they’d prefer you to perform some transactions through your wallet. Transactions such as; buying airtime and data, sending and receiving money through that wallet for the past 6 months. However, this does not require collateral from customers. You get your money on the go as soon as you complete your application via USSD code.

4. Fido loans

You can conveniently access the Fido 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 a credit history with them for some time. You start this by borrowing small amounts and pay back in due time, over and over.

Conclusion

There is always a sigh of relief when the storm of financial difficulties miraculously disappears. Especially when you have a remarkable alternative (personal, business, travel, consolidation loans, etc). But loans without collateral in Ghana are the next big thing that has garnered the attention of many Ghanaians. Some financial institutions in Ghana now ensure the populace does not have much to worry about regarding access to loans. However, repayment of the loan you get is essential in order to keep your credit score in perfect condition. So that you can access another loan in the future.

How to get a mortgage loan from First National Bank Ghana shouldn’t bother you anymore. First National Bank has several mortgage loan products that will serve you the deal that could suit your needs. They designed their mortgage loan products to meet their customers’ varying financial capacities. This article will put you through how to get a mortgage loan from First National Bank Ghana.

About First National Bank Ghana

After acquiring GHL Bank, First National Bank (FNB) has become Ghana’s top mortgage lender. In fact, the bank’s principal business is house finance. According to a survey by Housing Finance Africa, First National Bank is the industry’s key player and market leader, with around 50% of the market share.

What are the Mortgage Products by First National Bank?

Property insurance and about 11 different mortgage products are what First National Bank offers collectively. We break down 5 key ones:

1. Purchase Mortgages (First Time, 100% & Buy-to-Let)

The First Time Purchase mortgage product’s principle is simple: choose your dream property and FN Bank will take care of the rest. The key requirements are that the property be a residence, that you have acceptable proof of ownership, and that you can repay the entire loan amount before your 60th birthday.

With this program, you can get up to 80% of the cost of your dream home (maximum GH₵1.6 million). This entails putting down a 20% security deposit. You have up to 15 years to repay your loan, with dollar loans taking 15 years and cedi loans taking 10 years. This loan also comes with insurance coverage.

The 100% Purchase Mortgage they offer is a significantly different instrument. You don’t have to put down any money and can get complete financing for your dream home. The maximum sum is still GH₵1.6 million. The Buy-to-Let purchase mortgage is another similar product. If you currently own a home and want to buy another to rent it out to renters, then Buy-To-Let Mortgage is for you. Smart investors should take advantage of this opportunity because it’s a terrific method to pay off your mortgage quickly and without stress.

2. Land Purchase Mortgage

Buying a home is wonderful, but sometimes it’s the land that you’re after. This product is for customers who require a loan to purchase serviced residential plots. Once you have land that is served (mapping road network, water, and electricity) and allocated for residential purposes, you can apply for this financing. You have 3–5 years to repay the loan and must make monthly payments equal to no over 40% of your net income.

The maximum loan amount you can get is up to 80% of the value of the land you want to buy. For cedi loans, the minimum loan amount is GH5,000.00, while for dollar loans, the minimum loan amount is $10,000.00. Applicants must be able to repay the loan before their 60th birthday, like with all of FN Bank’s other products. They require a registered indenture or land title certificate.

3. Home Improvement & Completion Mortgages

Existing homeowners can use these products to either finish a dream home that has been stalled while building is underway. Or to renovate and/or upgrade a home that they have completed but needs some work.

They designed the Home Completion Mortgage to assist with the completion of a home that has already begun construction. First National Bank will assist in the purchase of roofing materials, windows, doors, tiles, and other finishing supplies. Debt Burden- Customers shouldn’t spend net income above 40% on debt. Repayment – Customers would make repayment on a monthly basis.

Home Improvement Mortgage, the purpose of the mortgage, however, is to repair or extend an existing home. On both options, you have between 10 and 15 years to repay the debt.They repay loan amounts on a monthly basis and limited to 40% of the beneficiary’s net income.

4. Home Construction Mortgage

The first step in creating your ideal home is to purchase land. If you’re short on cash but have land ready to build on, this loan can help. The terms of this loan are identical to those of the others. You have between 10 & 15 years to pay back; they pay loan back in fixed monthly instalments and it will not be over 40% of your net income.

5. Save-to-Own Mortgage

Mortgages are more difficult to get for self-employed Ghanaians than for salaried workers. The Save-to-Own Mortgage from First National Bank comes to the rescue in this situation. They designed this product for Ghanaians who are self-employed and do not have a consistent source of income or all of the funds required to put down a down payment on a home.

This is more of a goal-setting tool than a mortgage product. It’s like to a typical savings account, but with a clearer goal: to acquire real estate. After making consistent payments for up to 12–24 months, you will be eligible for a mortgage loan. Consider it as the non-salaried worker’s loan qualifiers. Non-salaried homebuyers can use this to take the first steps toward homeownership by addressing it one step at a time.

Equity Release Mortgage, Refinance Mortgage, and Quick Cash are some of the other mortgage products offered by FN Bank. These mortgage programs have interest rates that are around 30% per year. These are the fundamental features of a mortgage.

In order to qualify easily for these things, one must earn an average of GH5,000 each month.

What are the requirements for First National Bank mortgage loans?

There are some requirements that you must meet in order to get a mortgage loan from First National Bank Ghana. They include:

1. A copy of your valid identity document.
2. Get your latest 3 months bank statement.
3. Provide your latest 6 months bank statement if you’re not banking with First National Bank Ghana.
4. If you’re employed, get an introduction letter from your employer.
5. If applicable, get your marriage certificate.
6. The details of the property you want to buy with duly signed ‘Offer to Purchase.’
7. These requirements are for you and your co-applicant wherever it’s applicable.

How can I apply for a First National Bank mortgage loan?

You must apply to access any loan offer. There are things you must do in order to apply for this mortgage loan. They include:

1. From the list of requirements above, you can easily apply for a mortgage loan by emailing complete mortgage forms to ghanahomeloans@firstnationalbank.com.gh

2. You can visit any of their branches in your locality and request a mortgage loan. Their representative will guide you on how to apply.

What are the contact details of First National Bank Ghana?

For more enquiries about any of their products and services, you can reach them through:

1. Telephone: +23 324 243 5050, 0800 770 522
2. Fax Number: +23 324 243 5202
3. Email: info@firstnationalbank.com.gh
4. Head Office Postal Address: First National Bank Ghana Limited PO Box TU23, Accra, Ghana.
5. Physical address: 6th Floor Accra Financial Centre Cnr of Independence and Liberia Ave Ridge Ghana.
6. Digital Address: GA-107-2442.

Conclusion

There is nothing as comforting as coming back home after a tedious day’s work with a peaceful shelter over your head that’s yours. You would have fewer issues to worry about when you compare your privacy with that of people in a shared apartment. Having seen how to get a mortgage loan from First National Bank Ghana, it’s now left for you to decide. You have several mortgage products you can choose from and get your dream house. However, ensure you can always repay any form of loan before getting it as it will improve your credit score. This is because failure to repay your loan would make credit bureaus in Ghana to blacklist you.

Other related articles:

Complete list of mortgage companies in Ghana

How To Get A Home Loan Or Mortgage In Ghana

Mortgage loans – meaning, types, and how to apply

You can’t underestimate the essential roles lenders play in the financial market. On the individual level, lenders give loans to borrowers who have divers financial needs. These loans could be as; guarantor, travel, debt consolidation, emergency, quick loan, Payday loans etc. Lenders are surely good options of financial help for individuals and businesses. This is because individuals and businesses do not always have enough cash flow to carry out their financial obligations. The meaning of a lender, lending process, and so on are all-inclusive in this article.

Who is a Lender?

A lender is an individual, public or private group, or even a financial institution that gives funds to a person or business. And they expect the person or business to repay the loan. This repayment will include the payment of any interest or fees that follows the loan. And it can come in increments, as in a monthly mortgage payment or as a lump sum.

Individuals can use the money they got from lenders for various purposes, such as financing working capital, student loan, or business capital. Because of uncertainties, businesses can also borrow credit to provide a backup line of credit. Especially where they generate irregular cash flows.

What is the lending process like?

Borrowers may seek funds for a variety of reasons, such as a home mortgage, car loan, or an SME loan. Lenders always state how borrowers must repay the loans in the terms of the loans. Besides that, the terms also bear the period, and the consequences of missing payments and default. However, for loans that are past due, a lender may go to a collection agency to recover any funds.

Either the lender or borrower can start lending. Most commonly, a borrower meets the lender or a bank for a loan. And as a borrower they could require you to fill a loan application form. Then the information they need in the application will include the loan amount you need, and its use. Besides that, you’ll state the current cash flows or income, your physical address, names and address of your guarantors.

However, a bank or financial institution may also meet individuals or corporations with a proposal to lend them credit at certain terms. Here, the potential borrowers are most times high net worth individuals. And also high-growth businesses that may need credit regularly for investment or funding their working capital.

How do lenders make loan decisions?

Lenders are always very careful with loan decisions. This is because if they make thoughtless decisions, they’d risk offering loans to borrowers who may not repay their loans. So in order to avoid such risks, lenders decide in the following ways:

1. Individual borrowers

Borrowers credit history can largely determine their qualification for a loan. The lenders usually examine the borrowers’ credit report, which provides the names of other lenders extending credit. It also shows what types of credit are extended, the borrowers’ repayment history, and more.

Lenders get this report from credit bureaus, and it helps them determine whether the borrower can manage payments. Especially based on their current employment and income. Also, lenders may also use the Fair Isaac Corporation (FICO) score in the borrower’s credit report. And this will show borrowers’ creditworthiness and help make a lending decision.

Borrowers pledge collateral when applying for a secured loan, such as an auto loan or a home equity line of credit (HELOC). They will evaluate the collateral’s value. And also they will subtract the existing debt secured by the collateral from its value. Then the remaining equity will affect the lending decision.

After that, the lender will evaluate borrowers’ available capital, which normally includes savings, investments, and other assets (collateral). This is essential should there be job loss or other financial challenges. Besides that lenders may ask what the borrowers plan to do with the loan. To know if they’ll use it to purchase vehicles or other properties. However, they could also consider other factors, such as environmental or economic conditions.

2. Business borrowers

Financial institutions and credit unions may offer loans to businesses with their guidelines. Whereas private institutions, venture capitalists and angel investors lend money based on their own criteria.

In order to make effective loan decisions, they’ll know the purpose of the business, the owner’s character. Besides that, they’ll also know where the business operates, the annual sales and the business growth.

Small business owners provide both their personal and business balance sheets to prove their ability to repay loans. The balance sheets bear the details of the individual’s assets, liabilities and net worth of the business. However, the lender will have a final say on the terms should business owners propose a repayment plan.

How can I find a lender?

It’s always the best decision to research different lenders on the market. This is because each lender has different loan terms and interest. And you can only know the one that best suits you through research. So, research different lenders on the market when you’re planning to borrow a loan.

Therefore, carry out your research based on the loan type you need. This is because most lenders focus on lending definite types of loans. Or you can ask for recommendations from your family, friends, advisors, mentors, and colleagues. Typically, those who borrowed money in the past. So, pick two different lenders at the very least, and compare them to determine the more favorable option for you.

Banks and credit unions are the best place to start with when borrowing a loan. When you want to get business, personal, and auto loans, such financial institutions are a wonderful choice.

3 factors to consider when finding a lender?

There are some factors you must consider when looking for a lender. They are:

1. The loan amount

The loan amount you need will determine the type of lender you should approach. Family, friends and peer-to-peer lenders can be viable options for small loans because they have little to no borrowing requirements. But for large business loans, you can approach a bank to see their terms and interest they offer.

2. Startup business

Most commercial banks shy away from lending to startup companies because of the absence of stable cash flows and transaction history with the bank. The best places to get a startup business loan are the less traditional types of lenders, such as family and friends, crowdfunding, and online lenders.

3. Pledged assets

Most lenders would require borrowers to provide collateral against the loan they offer to them. So, if borrowers have business assets with verifiable proofs of ownership. Then they can get loans from financial institutions easily and at better terms. These assets as collateral the borrowers offer provide a level of assurance to the lender. So that, in case of default, the bank can sell the asset to recover the total of the loan.

What are types of lenders?

You already know that the most common lenders are banks, credit unions and other regular traditional financial institutions. However, there are still other types of lenders. They include:

1. Peer-to-peer (P2P) lenders
2. Family and friends
3. Crowdfunding contributors
4. Yourself

1. Peer-to-peer (P2P) lenders

Some peer-to-peer lending operates through online organizations. And their online sites help to connect lenders with borrowers. Most times P2P interest rates are lower than borrowers would find with a traditional bank. But it could be higher than what a lender could get from a certificate of deposit.

2. Family and friends

Loans transactions from family and friends who can become lenders are sometimes called “private party loans.” You should consider the impact a loan might have on your personal relationship with these people. Especially if you can not repay the loan at the end of the day. However, it’s better to prepare a loan agreement to help ensure everyone agrees.

3. Crowdfunding contributors

Some crowdfunding sites are like P2P lending sites but there are a few differences. This is because they digitally connect the people in need of money with the people who have and want to lend money. This is unlike P2P lending. Because the people who contribute to crowdfunding efforts may not receive their money back cedis-for-cedis. Instead, they may receive a bonus from the person or project they’re funding.

4. Yourself

As an alternative to investing, if you have the means, you can loan your own money to your business. Therefore, if you choose to loan yourself money, then write a contract that specifically states your role as a lender. The payment schedule, and the consequences should there be a default on payments.

Conclusion

Borrowers must ensure they repay their loans to lenders. As this will encourage lenders to continue offering their services to other borrowers. Besides that, lenders should always check the credit history of borrowers before giving them loans. This is because the knowledge of the credit history of borrowers will help them know who can repay their loans. Therefore, in order to do that accurately, they should get borrowers’ credit history from notable credit bureaus in Ghana.

How to get a mortgage loan from Republic Bank Ghana shouldn’t bother you once you have gone through this article. There is always a time when you could want to move to a new environment. And preferably into your own home and in an environment you cherish above others. This is typical of people who live in a shared apartment. Therefore, getting a mortgage loan could be one step you could take to actualize your dream home. 

As you read along, you’ll learn how to get a mortgage loan from Republic Bank Ghana.

About Republic Bank Ghana

In December 1991, Republic Bank first started operations as the Home Finance Company. The company only recently changed its name to Republic Bank in 2018 after being acquired by Republic Holdings.

Republic Bank (then HFC) in November 2007,was appointed Manager of the Public Sector Employees’ Housing Scheme. And Republic Bank and the Government of Ghana put this together to provide affordable housing for public sector workers. Under such a program, the bank has financed over 350 mortgages. The Public Sector Employee Home Scheme, or PS Home Scheme, is the name of this mortgage program.

Republic Bank loans have a maximum period of 20years or until the beneficiary reaches retirement age, whichever comes first. The maximum loan amount shall not exceed GH₵25,000. However, Republic Bank may lend at commercial rates on amounts larger than GH₵25,000, but they will require beneficiaries to make up the difference as a condition of the loan being disbursed. They may offer beneficiaries loans of up to 100% of their income, depending on their ability to repay.

Republic Bank lends money for properties within a 40-kilometer radius of Accra, Tema, Kumasi, Sekondi/Takoradi, or any of the regional capitals. And also any economically workable place the bank permits.

What are the Mortgage Products of Republic Bank Ghana?

Republic Bank offers similar mortgage products to some banks, with the difference mostly in the details regarding property insurance. They include:

1. Home Purchase Mortgage (HPM)

The Republic Bank Home Purchase Mortgage should assist people and businesses in purchasing residential homes for personal or investment usage.

2. Home Equity Loan

This facility allows applicants who own homes or have previously invested in residential properties to release. Or take out equity in those properties in order to build another home, renovate, or improve an existing home. Existing homeowners and businesses with properties are the target market for this product.

Loans may not exceed 80% of the property’s forced sale value (FSV). This facility has a maximum term of 15 years for both cedi and foreign currency loans. The property must have a clear and indisputable title. It is necessary to register the title.

3. Republic Bank Employer Assisted Loan Scheme

It’s an installment loan system based on a deal between the Republic Bank and the employer. Consumer durables (made objects, such as cars or household appliances, that should have a long usable life after purchase), furniture, land acquisitions, and rent advance (also known as rentgage) are all covered under this loan. Only salaried employees of “reputable institutions” are eligible for this benefit. Customers and non-customers of Republic Bank can use this service.

4. Home Improvement Mortgage

The Republic Bank Home Improvement Mortgage should assist applicants in renovating and extending their current homes. The loan can also use it to purchase house furnishings. Existing homeowners and businesses with properties are the target market for this product.

5. Public Sector Employee Home Scheme (PS Home Scheme)

The Government of Ghana (GoG) required Republic Bank to establish an affordable property ownership scheme for government employees in its 2007 budget. All applications for the Republic Bank’s affordable home ownership program will be assessed against Republic Bank’s eligibility and credit requirements.

All current public sector employees who have worked for the government for at least 5years are eligible for the PS Home Scheme. With special provisions for judges, they offer the loan to applicants up to the age of 60.

6. Buy, Build & Own a Home (BHome)

This program is for low-income candidates who can only afford a home if they purchase land and develop it. There are 2 levels to it:

1. The “BUY” land portion; and
2. The “BUILD and OWN” portion.

The beneficiaries will donate 10% of the land’s cost. The maximum amount available for the “BUY” element of the loan is $15,000 (in cedis). However, beneficiaries are eligible for the “BUILD and OWN” element of the product after making a 50% payment on the initial loan. To build a house, the consumer chooses one of six designs from the Bank. They chose the house when they submit the initial financing application for the “BUY” land part. 

The maximum loan amount for the “BUILD and OWN” (Construction) program is $35,000 or the equivalent in cedis. Each component of the facility has a maximum duration of ten years, for twenty years. The land must have a clear and indisputable title that is properly registered. Building permits, development permits, and allowed building plans are all required.

What are the requirements for Republic Bank Ghana mortgage loans?

There are some requirements you must meet in order to get a mortgage loan from Republic Bank Ghana.

General requirements for Republic Bank Ghana mortgage

1. A complete and side Republic Bank mortgage application form.
2. Processing fee, which refers to a specific product link.
3. 1 passport size photograph
4. Proof of Relationship (if joint application)
5. Power of Attorney which a notary public must witness
6. Copy of your identification; passport, driver’s license, national ID.
7. For salaried employees: Income confirmation and employment from your employers.
8. Your latest three (3) salary slips/ pay stubs showing all deductions.
9. For self-employed applicants: provide last 3 years certified audited accounts or at least 3 years copies of your income tax returns.
10. Your business profile
11. Your last six (6) months bank statements if not a Republic Bank Customer.
12. Get a credit report from a recognized credit bureau or credit reporting agency.
13. Get your six (6) month’s copy of Bank Statements if not Republic Customer.
14. You may open a Homsave account with a minimum of USD500 or GBP200.

Additional Requirements

Apart from the requirements above, there are other additional requirements in order to secure a mortgage loan from Republic Bank Ghana. They include:

1. An offer letter from a Real Estate Developer or Vendor (HPM application only).
2. Make a minimum deposit or down payment of 20% of the total cost of the property (HPM application only).
3. Valuation report that a Republic Bank recommended Valuer will make for you.
4. Title documents to the property.
5. 4 copies of site plans.
6. Approved Building plans/Development permits for Home Improvement and Home completion Mortgage.
7. Bills of Quantities for Home Improvement and Home Completion Mortgage.

What are the mortgage rates of Republic Bank Ghana?

The mortgage rates of Republic Bank Ghana are two (2) namely:

1. Mortgage which is up to 10 years with 21% variable.
2. Mortgage which is over 10 years up to 20 years with 22% variable.

Read also: Republic Bank Ghana loan- Review

What are their contact details?

For more details, you can get in touch with Republic Bank through:

1. Address: No. 35 6th Ave., North Ridge
2. Phone: 0302242090/4 or 0556543212 (WhatsApp)
3. Email: email@republicbank.com

Conclusion

Republic bank also offers Home Completion and Construction mortgages much like other mortgage providers in Ghana. Having seen their mortgage loan products, you can now choose the one that will best suit your taste. Know that the goal is to get you a new home from the mortgage loan. Therefore, ensure that you can repay the loan easily so that you will not get into more financial difficulty than you were.

Other related articles:

Complete list of mortgage companies in Ghana

How To Get A Home Loan Or Mortgage In Ghana

For many average/middle-class people, owning a home they can call their own is a dream come true. Absa, in their endless desire to assist, has devised a fantastic loaning strategy that takes advantage of this characteristic. So, this program is designed to not only make their goal a reality but also to make the process of ownership as simple as possible.

Absa mortgage loan provides you with a variety of flexible solutions to help you realize your goal. Whether you plan to become a homeowner, a home builder, or are already a homeowner, there are possibilities for you.

About Absa bank Ghana

The Absa bank is owned by the Absa Group, and Absa loans are one of the services offered by Absa banks.

In Kenya, Ghana, Botswana, Mauritius, Tanzania, Seychelles, South Africa, Mozambique (Absa and National Bank of Commerce), Uganda, and Zambia, the Absa Group owns most bank shares. Also, they have offices in Namibia, Nigeria, the United Kingdom, and the United States, among other places. In addition, the company operates insurance businesses in Botswana, Kenya, Mozambique, South Africa, and Zambia.

Absa Mortgage loan

Owning your dream home has never been easier, faster, or more convenient. Absa can help you whether you’re buying a home, borrowing against the one you already own, or improving your present one.

What are the features of the Absa Mortgage loan?

The following are the features of the Mortgage loan:

1. They offer up to 90% financing for home acquisitions and up to 70% financing for equity release and home improvement projects.
2. The maximum debt service they provide is a 50% ratio.
3. They can lend you up to GH₵5,000,000.00 depending on your salary and the value of the house you are buying.
4. Also, they have a tenor ranging from 5 to 20 years.
5. They offer property and credit life insurance, which pays out in the event of death, permanent disability, or retrenchment.

What are the requirements for the Absa Mortgage loan?

Before you can qualify to access Absa mortgage loan, there are some requirements you need to meet.

1. Property should be located in Accra, Kumasi, and the surrounding areas.
2. To qualify for a mortgage, you don’t have to bank with Absa (after approval, you will have to move your income or salary to Absa if you are not a customer yet).
3. The maximum payback duration is 20 years or until the borrower reaches the age of 60, whichever comes first (dependent on the retirement age required by your employer).

What are the documents you need for the Absa Mortgage loan?

As a salaried employee or a professional (lawyers, doctors, etc.), you’ll need the following documents to apply for a mortgage:

1. Current payslip
2. Identity proof (national identification card, valid passport, or valid driver’s license)

When buying a house, they demand the following documents:

1. An offer of sale from a vendor
2. Land title certificate
3. Indenture
4. Deed of assignment
5. Site plan
6. Building permit
7. Ground rent
8. Consent to mortgage for leasehold (if applicable)
9. Sale and purchase agreement.

For equity release and home renovation, you’ll need the following documents:

1. The customer’s land title certificate
2. Indenture
3. Site plan
4. Building permit
5. They do not require a bill of quantity for a loan amount GH₵400,000 and below.

The Benefits of an Absa Mortgage loan

There are some benefits that come with Absa mortgage loans. They include:

1. A 24.90 percent interest rate is in effect.
2. For home purchases, they offer up to 90% financing, and for equity release and home improvements, they offer up to 70% financing.
3. A maximum debt service ratio of 50% is available.
4. We can lend you up to GH₵5,000,000 depending on your salary and the value of the house you’re buying.
5. They have tenors ranging from 5 to 20 years.
6. They provide property and credit life insurance, which covers death, permanent disability, and retrenchment.
7. With an equity release loan, you can borrow against your home.
8. Make home modifications and repairs with the help of a house loan.
9. They can buy your mortgage from another financial institution if you have a home loan takeover.

Read also: How to get a loan from Absa bank Ghana

Conclusion

Putting up and managing financial resources to buy or develop a home can be quite difficult. Particularly for ordinary and middle-class people. Therefore, Absa Bank has put together the home loan because of this clear reality. With the primary goal of providing financial support to interested individuals, they must make their dreams a reality.

Loans help people to get out of financial difficulties. Unending needs also add to other causes of financial difficulties. But as an individual who needs cash flow to get things done. What else could you do when you don’t have any other means of getting cash flow immediately? In this situation, many people get a personal loan, business loan, travel loan from a notable financial institution. Direct Savings and Loans are also at the forefront of providing loan offers to their customers. In the rest of this article, we shall see all about Direct Savings and Loans, products and services they offer, etc 

About Direct Savings and Loans

Direct Savings and Loans Ltd is a banking institution in Ghana. Bank of Ghana licensed them to operate in Ghana. They operated as Express Capital Microfinance Ltd until 6th June 2017. Thereafter, on 19th June 2012, they incorporated it and they have been operating since July 2012. Their major duty is to provide banking services to micro, small and medium enterprises (MSMEs). Besides that, traders, market women, salaried workers and the self-employed have access to their banking services.

What are the products and services of Direct Savings and Loans?

Direct Savings and Loans offer various products and services to their customers. This offers loan options and other services to a distinct individual’s financial capability.

Read Also: ASA Saving and loan are currently providing insanely cheap loans in Ghana.

The following products and they offer their customers:

1. Savings Account

They provide an interest earning account for savings and limited transactions.

Features:

• Target Client are all customers
• Minimum Amount of loan is GHS 20
• You have an initial deposit of GHS 50
• The interest rate is 5% per annum
• The loan maturity is N/A
• Withdrawal frequency is a maximum of 4 times a month
• They calculate your interest, payment daily and pay you monthly.

2. Susu Account

This account helps customers to earn interests. It helps customers to save regularly for personal or business purposes. Besides that, it has the benefit of taking Susu loans.

Features:

• Their target client is all customers
• The minimum loan amount is GHS 20
• It has an initial deposit of GHS 20
• With an interest rate of 5% per annum
• It has the maturity of N/A
• The account has a withdrawal frequency maximum of 1 withdrawal per month
• They have other features such as; using deposit balances as cash collateral. You can also use it to qualify for a loan of up to 2 times the value of cash collateral.

3. Current Account

They offer both personal and business current accounts for their customers.

1. Personal current account: It is a current account for personal transactions, and it has zero maintenance fees.

Features:

• It is for all customers
• Minimum amount–N/A
• Initial Balance–N/A
• Interest Rate–N/A
• Maturity–N/A
• Withdrawal frequency–N/A
•  Maintenance/service fees–N/A

2. Business current account: This is a current account for business and operational transactions.

Features:

• The target client is all customers
• Minimum amount–N/A
• Initial Balance–N/A
• Interest Rate–N/A
• Maturity–N/A
• Withdrawal frequency–N/A
• It has a maintenance or service fee of GHS 12 per month.

4. Lending

Direct Savings and Loans offer various loan packages to borrowers. And they include individuals and Small and Medium Enterprises (SMEs). Under this loan product, they have:

Direct SME Loan

They designed the SME business loans to meet the needs of businesses. Typically, businesses that are growing and need working capital to support development. They process their loans quickly (usually in three days) once the documentation is right.

Features:

• The loan tenor is a maximum of 12 months
• Repayments take place usually weekly, bi–weekly and monthly.
• The minimum loan amount is GHS 20,000.

Direct Anidasoo Plus Loan

This is a hybrid of their SME and Anidasoo Loan products. They designed it for customers who may require some mixability.

Features:

• The loan tenure exists to a maximum of 6 months
• Repayments of the loan occur bi–weekly or monthly
• The minimum loan amount is GHS 10,000
• The maximum loan amount is GHS 30,000

Direct Anidasoo Business Loan

They designed this loan product for micro and small business to meet their credit needs. Especially for stock, expansion of business, etc.

Features:

• It has a loan tenure maximum of 3 months
• The repayments are strictly 12 weekly instalments
• Its minimum loan amount is GHS 1,000
• Its maximum loan amount is GHS 20,000.

Direct nkabiom Business Loan

This is a loan product they designed for micro and small businesses customers. Typically, for those who may not meet the requirement of independent guarantors for their loan applications. It allows group members to operate in the same geographic location and trade in similar or same products.

Features:

1. The group should comprise 3 to 5 members.
2. The members of the group serve as guarantors for each other. There is a share of risk over the group.
3. Repayments for the loan are strictly 12 weekly instalments. The group appoints a leader and an assistant. And they should be responsible for the weekly mobilization of the loan payments for the group.
4. The loan tenure is 3 Months.
5. It has a minimum loan amount of GHS 1,000 per group member.
6. The maximum loan amount is GHS 5,000 per group member.

Direct Bullet Loan

They designed their bullet loan to cater for emergencies or quick turnaround situations. This loan product is more suitable for business customers with seasonal activities. Because of this, it shows irregular inflows. Therefore, this product allows flexibility.

Features:

• It has a loan tenure of 6 months maximum. After which you repay the loan amount they gave you with interest
• The minimum loan amount is GHS 1,000.

Direct Overdraft

They designed this loan product to support the short term working capital gaps in the operations of their customers.

Features:

• The loan tenure is a maximum of 6 months
• The minimum loan amount is GHS 5,000
• It has a maximum loan amount of GHS 100,000.

Direct Personal/ Salary loan

They designed this loan product to support the short term financial needs of their customers. Salary loans are also known as Payday loans.

Features:

• The loan tenure is a maximum of 12 months
• It has a minimum loan amount of GHS 5,000
• It has a maximum loan amount of GHS 20,000

Direct Service Loan

This is a scheme loan facility they designed for National Service Personnel (NSP) in the public sector.

Features:

• It has a minimum loan amount of GHS 100
• With maturity of 1 to 10 months
• Its repayment frequency is usually on monthly installments
• The interest rate is 6.50% pm
• Fees – NIL

Investment

They offer two major investment products to their customers. They are:

Direct Fixed Deposit

This investment account is lucrative, starting from GHS 1,000. It also has fixed maturities customers can choose from and they can top-up at maturity only.

Features:

• Their target client are all their customers
• Its minimum amount is GHS 1,000
• It has maturity of 3 months, 6 months & 12 months
• With interest rate depending on your amount and duration
• You can only pay your interest in maturity and they also have rollover options.

Direct Invest Account

This is a short to medium term savings booster with higher interest rates for balances. You can start this investment account with GHS 100 and they allow regular deposits.

Features:

• Their target client is all their customers
• It has a minimum amount of GHS 100
• With an interest rate of up to 10% per annum. And it depends on your savings balance.
• They calculate your interest payment daily, and they pay you monthly
• They also allow another feature, such as periodic deposits.

Financial Advisory

Direct Savings and Loans have financial advisory services they offer their customers. This service comes in two ways, namely; investment and lending. 

Investment

They have a team of financial advisors whose mission is to spend time with their clients and ensure that they clearly understand various savings and investment products they offer. They encourage their customers to understand their products before deciding on their investment path.

Lending

They also help organise the financials of their clients. They do this without proper accounting documents. And this is to aid in granting loans that would only set their clients to succeed and grow.

Read Also: How to Identify Loan Scams In Ghana.

Remittance Service

With this remittance service, you can receive money easily from any part of the world.

What are the features and benefits of Direct Savings and Loans remittance service?

There are some benefits you can get through the remittance service of Direct Savings and Loans. They are:

• It is reliable, fast and convenient way to receive funds from overseas
• It is available at all Direct Savings and Loans branches
• Direct Savings and Loans customers and non-customers can use it too
• The service is fast
• Their environment is serene and safe.

What are the requirements for Direct Savings and Loans remittance service?

• Have money transfer reference number
• A national ID such as; passport, voters ID, driver’s license that is valid
• Provide your mobile phone number
• They would require you to answer test questions (where applicable)

What are the contact details of Direct savings and loans Ghana?

If you need further inquiries on Direct Savings and Loans Ghana, you can use any of the following details.

1. Address: 42A, Asafoanye A. OpekuAvenue, North Dzorwulu, Accra. Off the Fiesta Royal Hotel and GIMPA Road.

2.  Phone number: +233 303 969 550

3. Email address: info@directgh.com

Conclusion

Uncertainties lead to the need of cash flow in personal or business endeavours. In the time of need of cash flow. Loans can be a reliable financial backup you could use to pull yourself out of suck uncertainties. Direct Savings and Loans understand the need of financially advising their customers about their products. This helps the customers to make the best financial decisions for themselves. Besides that, it will also help them invest their money wisely. However, repayment of the loan after getting it is essential. This is because avoiding to repay your loans will ultimately reduce your chances of getting a loan in the future.

Read also:

Types of loans in Ghana – Meaning and advantages

How to get a loan from CalBank

How to get a loan from UBA bank in Ghana

There are payday loans for people with disability. Having a long-term disability is unquestionably a terrible condition to be in. From having difficulties in completing household work to being unable to work to earn their daily bread. Also butter regularly, such a situation can cause a lot of trouble for those who have to go through it. That’s why the government has offered Social Security Disability Checks to those who really need money but may not earn it themselves because of suffering from a long-term disease.

What is Social Security Disability Check?

Social security disability checks are grants offered by the government to individuals suffering from a chronic disorder or a long-term illness. It makes it easier for them to concentrate on their health over having to worry about where to earn money from. Also, many such individuals may physically not work, which is another reason ‌the government provides these funds to them.

However, one must note that the amount received through these funds is minimal, along with the average amount. A social security disability check can only help one cater to basic necessities of the month. Of course, there are added benefits with rates of various essential items being subsidized for these individuals, but these funds without a doubt aren’t enough to fund an emergency in case one arises. That’s when individuals who rely on social security disability checks consider applying for short-term loans.

Can I Get a Payday Loan with a SSDI?

Indeed, you can. If your earning of the month is through a social security disability check, and you’re able to prove the same. Most payday loan lenders shall ‌fund you. You see, a social security disability check is equivalent to your monthly source of income, and also comes on a fixed date just like a salary does. Now, direct lenders require one to have a stable source of income, after which they accept loan requests and fund borrowers. Since they consider a social security disability check to be as good as a regular source of income. Most direct lenders shall ‌provide funds to those who have SSDIs as their source of income.

What’s better? There are many lenders who offer both online payday and installment loans to make life easier for their borrowers. If you choose to apply for a loan with such a lender, you may ‌make things easier in your pocket for repayment. Installment loans from direct lenders are funds ‌one is required to repay in parts over time. And this is unlike a typical payday loan that is ‌repaid in a lump sum on the borrower’s next pay date.

These installment loans aren’t exactly the same as the ones offered by traditional loan lenders. For instance, the installment loans offered by online direct loan lenders come at a higher price than those that are offered by banks. However, they are transferred quickly, unlike the latter, and come with similar benefits as payday loans do, only better.

Can I Get a Payday Loan with an SSDI If I Have Bad Credit?

If you have bad credit but have a social security disability check as your source of income, getting funded by a direct loan lender shall not be too difficult.

Direct loan lenders do not solely rely on one’s credit status in order to fund them. Instead, they depend on their source of income, which ideally, should be stable on a monthly basis.

That way, direct loan lenders give a chance to their borrowers to improve their credit ratings. By giving them an opportunity to repay them on the due date and help their credit rating increase.

Even if a borrower has a credit rating of 300, there are several direct loan lenders who shall ‌fund them.

So, if you have bad credit but have a stable source of income through your SSDI, you can easily get a loan from your direct loan lender as long as you’re able to prove the same.

What Can I Use My Payday Loan for?

You can use your payday loan for several reasons, including:

1. For an unexpected medical emergency
2. To pay off extra bills
3. To get a vehicle repaired
4. Visit your family on a vacation
5. To celebrate an occasion
6. To re-do your house

What Do I Need to Get a Payday Loan?

Here is the generic list of documents asked by most direct loan lenders in order to accept payday loan requests:

1. Social Security Number
2. Income statement/ Social Security Disability Check proof
3. Checking account details
4. Verifiable contact details
5. Age proof (stating that you’re 18 years old or more)

Conclusion

Other loan types require you to have an excellent credit score to qualify. However, it is not the same with these payday loans for people with disabilities. Besides that, some lenders require borrowers who do not have an excellent credit score to provide collateral.

Other related articles:

How to apply for an Access Bank PayDay loan

Corporate loan – Meaning and what you need to know

Debt consolidation loan in Ghana explained

Do you belong to the group of people who ask: Are payday loans bad? With so many financing alternatives accessible on the market. Some are sure to be deemed good, while others are bound to be ‌terrible, depending on the individual. Whether ‌financing choice is harmful is largely determined by one’s perspective and, sometimes, experience. They label payday loans unfortunately as “a negative funding alternative” by certain people, and their firm beliefs have persuaded others to assume the same. That, however, is not the case.

Difference between a payday loan and a traditional lending option

Is it true that payday loans are worse than regular loans? Some people, including ourselves, have the opposite viewpoint.

Let’s start with an explanation of the differences between a payday loan and a standard loan.

1. Traditional lending

The fact that a payday loan is more expensive than a standard loan is perhaps the only reason ‌they regard it negatively. When you choose a standard loan, however, you will face several disadvantages.

Take, for example, a case in which money is required immediately because of a medical emergency. This person’s savings do not cover the bills, thus he or she may require help from a third party. Although approaching a friend or family member is an option, not everyone can afford to offer that much money, so this person looks to a traditional lender. Traditional lenders’ lengthy approval processes‌ make it impossible to get a loan quickly when one is in need. They also conduct credit checks, making it harder for persons with weak credit or no credit to get loans.

Getting a traditional loan is not as simple as it may appear. They are not only time demanding, but only a small percentage of applicants are qualified for a loan. They may charge people with bad credit more than those with strong credit, and they request most people to provide collateral as well. Many people find it difficult to get a loan because of this. Furthermore, traditional lenders’ credit checks are time-consuming and comprehensive, potentially lowering the borrower’s credit score. It also makes it tough to get a loan promptly when you severely need cash.

2. Direct Lending

For payday loans, direct lending can be a little more difficult to repay because they are a little more expensive than typical loans and you must repay in full on the next pay period.

Direct lending‌ has many advantages, including quick approvals and transfers to avoid any delays in an emergency‌. Besides that, there are approvals even with bad credit, and no hard credit checks to avoid a reduction in one’s credit score. Also, the avoidance of long lines and travel to a brick and mortar lender.

Conclusion

An online loan for bad credit is the finest choice accessible if one needs money quickly and has bad credit. Traditional lending‌ can be a better alternative for those who don’t have low credit and are ready to wait a few days to gain the money they need.

Other related posts:

How to apply for an Access Bank PayDay loan

Can Self-Employed Individuals Get Payday Loans

How to apply for Mobile Money loans in Ghana