Societe Generale Loans are some of the loan options you can explore in Ghana. Societe Generale is one of the major players in local economies that take part in the financial inclusion of the population. Besides that, Societe Generale loan covers short to medium term borrowing needs. This is one of the personal loan options you could try out to solve your personal needs. As you read along, you’ll know more about Societe Generale loans, their requirements, how to apply, etc.

About Societe Generale loan

Societe Generale limited is a bank that is based in Ghana, previously known as Societe Generale-Social Security Bank. They founded Societe Generale Ghana in 1975 but started operations in 1977. And they have listed their stock on the Ghana Stock exchange. They know Societe Generale for outstanding loans amounting to 60 million, representing around 10% of the gap between loans and deposits of financial institutions.

Requirement for Societe Generale Loans

There are some requirements you must meet to be eligible to apply for Societe Generale loan. These requirements include:

1. Letter from employer
2. Salary slip
3. you must be an employee for at least a year

How to apply for Societe Generale Loan

So, having met the basic requirement for Societe Generale loans. You can apply for your loan of choice from Societe Generale list of loans through the following steps:

1. Fill a loan application field 
2. Fill the relevant CAGD loan input forms 
3. Submit for proper processing.

However, there is no delay in disbursement of the loan. They can transfer the loan into the personal account of the borrower immediately after due processing of documents.

Repayment of Societe Generale loan

After getting a loan, you should also make plans on how you’re going to repay it. However, repayment of Societe Generale loans ranges from a minimum of 48 months to a maximum of 5 years. However, you can repay Societe Generale loan through installment deduction of monthly salary.

What are the benefits of their loan?

There are some benefits you will gain by trying out the loan offers from Societe Generale loans. Some benefits from it include:

1. Flexible repayment period
2. Refinancing of more expensive loans from other institutions
3. A very competitive interest rate
4. Loan amount depends on your affordability
5. It offers service at the comfort of your office

Conclusion

Societe Generale loan available for civil servants, military personnel and government workers in Ghana with low interest rate and affordable repayment terms. Besides that, they make this loan available to help reduce the financial problems civil servants face and aid them with finances to resolve personal needs and investment. However, prompt repayment of loans is essential as it will help to improve your credit score.

USSD loan codes in Ghana shorten many processes of loan applications at financial institutions. These USSD loan codes help you access various banking services with your mobile phone. Therefore, they wouldn’t need your presence in their office to offer you financial services. Because of this, rigorous processes to get quick cash flow are now things of the past. With USSD loan codes, you wouldn’t need to visit loan companies’ offices to make enquiries and apply for loans anymore. 

Information on what USSD codes are all about, how you can access the codes and so on are all-inclusive in this article.

What is USSD code?

USSD means Unstructured Supplementary Service Data.

USSD is a code for free mobile banking service. It enables you to access basic banking services on your mobile phone, smartphones, and tablets. They do this without consuming data or call credit from your telecommunication network provider. Also, with USSD codes, you can easily get every information you require about a loan on the loan platform. It provides easy access for customers in transacting on their bank accounts without stress and inconveniences.

We can use it for mobile-wallet, callback services, loans, network configuration services and so on.

What is USSD Banking?

USSD banking involves financial transactions through the use of quick or short codes on your mobile phones. Apart from paying bills and making subscriptions with USSD codes. You can also use USSD codes to get loans.

How to use USSD loan codes in applying for loans

Knowing that USSD codes help to make loan applications easier. You can simply follow the steps below for quick and easy loan application at the comfort of your home or office:

1. Have a Knowledge of your loan provider 
2. Get the functional USSD code
3. Meet all minimum requirements for that loan
4. Dial the code on your registered network with your mobile phone
5. Follow the prompt
6. Get your loan

USSD loan codes in Ghana

There are many USSD codes for financial institutions in Ghana. You can check out the list to apply for a loan through USSD. You just need to dial the code into your phone and follow the prompts that pop up. USSD Codes for loans in Ghana Include: 

Platform	USSD Code for Loans
AB Microfinance Bank	*389*755#
Access Bank Payday Loan	*901*11#
Accion Microfinance Bank	*572*6#
Airtel quick, Cash	*561#
ALAT Loan by Wema Bank	*945*100#
Aladdin Nano	*903#
Carbon Loan	*1303#
Ecobank Xpress	*326#
Etisalat	*561#
Fairmoney Loan	*322*2#
FCMB	*329#
First Bank First Advance	*894# or *894*11#
Glo Cash	*322*1*04225701*Amount#
GTBank Soft Loan	*737*51*51#
HFC Loan	*618#
Interswitch	*322#
Izwe Loan	*483*69#
Kwikcash	*561#
Migo loan	*561#
Mjara loan	*565*5#
MTN Cash	*606*4#
Trader Moni	*540#
Paga	*242#
Payattitude	*569#
Quickteller Loan (MTN, Etisalat & Airtel)	*322#
Quickteller for Glo users	*805#
Teacher’s Mutual Fund loan	*718*60#
Zenith Bank Loan	*966#
ECO Bank	*326#
Stanbic Bank Ghana	*715#

Note: 

1. You can have full access to financial information and carry out transactions on the go; anywhere and anytime.
2. No need for a computer, internet, bank branch or cellular data to carry out your transactions.
3. Mobile top-up credit is always available for buying a scratch card.
4. It is always reliable and convenient

Requirements for USSD loan codes in Ghana

For you to use the USSD loans codes, there are requirements you will meet. The requirements for USSD loans codes are nothing to worry about. You need to have an account with some banks to access the loans they offer via USSD codes. They do not require collateral before you can access the loan.

Some other savings and loans companies do not require an account. Rather, they ask for your personal details, Bank Verification Number (BVN), account details. Some banks may require:

1. Online Registration

When you register for online banking, you sign up for USSD Mobile Banking. You will receive your PIN for logging in after they have granted you full access to online banking. Upon receiving the PIN through SMS, log in to USSD Mobile Banking by dialing USSD code on your mobile phone.

2. Paper Registration

Go to any branch and request to sign up for online banking and mobile banking. Complete the E-banking application form. You will receive your PIN for logging in after they have signed you up by Bank Customer service. Upon receiving the PIN through SMS on your mobile phone, log in to USSD Mobile Banking with your PIN by dialing the USSD Codes on your mobile phone. They will ask you to change your PIN to one you are most convenient with.

Uses of USSD loan codes

Having known the requirements and how to apply for loans with USSD codes. It is also good to note the uses. You can use it for: 

1. Balance Enquiry
2. Mini Statement 
3. Self-Funds Transfer
4. Beneficiary Payment
5. Mobile Top-Up.
6. Instant Cash

Benefits of USSD loan codes

There are a lot of benefits that come with the USSD codes for loans. You really need to know what you stand to gain, which includes:

1. There is no need for data
2. It is more secure
3. You have control over it
4. It works on any mobile device

Conclusion

Getting loans with USSD codes is very easy and quick. All you need to do is meet the requirements for the loan you seek from the loan provider. Dial the correct USSD code, then you can have your money right in your account. Ultimately, the right use of these USSD codes will ensure you do not fall prey to loan sharks. However, repayment of the loans you get is essential. This is because it will improve your credit score, so that you can access another loan in the future.

Izwe loans are some of the loan offers you could try out when you need money to meet your personal commitment or financial needs. Some of these needs could be to have enough funds to support your studies as a student. Besides that, getting funds to start a business and so many other needs is what you could be facing. The repayment terms of loans, however, decide when you should repay the loan. Therefore, it is essential to know the full details of your loan repayment terms. The requirements for Izwe loans, how to apply and more information are all-inclusive in this review.

About Izwe Loans

Izwe is a savings and loans company with the license of the Bank of Ghana (BOG). It strictly adheres to the regulations of the Securities Exchange Commission (SEC). Also, it plays by the rules of the National. They incorporated it in October 2010 and started serving customers in July 2011.

Izwe loans’ branches are in various cities in Ghana, namely: Accra, Cape Coast, Ho, Koforidua, Kumasi, Takoradi, Tamale, Suame and Sunyani.

Furthermore, Izwe is an appendage of the Izwe Africa Group, an international group that provides financial solutions. Izwe operates in Ghana, Kenya and Zambia with the group’s headquarters in Mauritius. Izwe as a financial institution, offers loans to civil servants, businesses (SMEs) and individuals in Ghana.  When you need financial support, try out an Izwe loan. 

What are the requirements for Izwe loans?

Just like every other loan from different financial institutions, there are always requirements you have to meet.

The following are the requirements expected of you when sourcing a loan from Izwe:

1. Your government employee number
2. Two original passport photographs
3. Your most recent pay slip
4. A valid National Identification number
5. Proof of banking details/bank statement
6. A minimum deposit into your account of GHC 50
7. Your residential address

What is the Izwe loans maximum loan amount?

The availability of the loan amount you need is really important. It is good to know whether you can get that loan amount you need. However, the maximum loan amount for Izwe loan is GHC40,000.

How can I apply for Izwe Loans?

Having met the requirements for Izwe loans, the next question that comes in mind is how do I apply? Izwe loans are very easy to apply, as it involves a few steps.

You can request to apply for Izwe loan through:

1. You can visit any Izwe branch to apply for the loan. The company has many branches in Ghana.
2. Contact the call centre and lodge your interest for the loan.
3. Agent network of the company can also help to get the loan.
4. Visit their website with your smartphone, tablet or personal computer to apply for the loan.
5. When you must have done any of the above, you will receive an offer within minutes based on your affordability.
6. Sign the agreement and submit your supporting document.
7. Then get your loan.

What is the Izwe loans minimum or maximum loan amount of interest rate?

Before getting a loan, it is very important to know what the interest rates are. This will help you know whether you can cope with the loan repayment.

Izwe loans interest rate varies regarding loans you are eligible to get. However, the minimum Izwe loans interest is 15%. While the maximum interest rate is 24%.

Are there additional fees on Izwe loans?

After knowing the interest rates, knowledge of additional fees is also essential. For Izwe loans, there are no additional fees. 

How fast are the Izwe loans released? 

An urgent need for a loan should make us want to get the loan as fast as possible. The application for Izwe loan is processed in under 30 minutes. While the successful payouts are in less than 72 hours. The money only takes time when you did not get an approval and they require you to come to one branch to complete your documentation process before they disburse the money into your account.

How do I pay back Izwe loans?

Getting a loan is good, but everything becomes better when you’re able to pay back the loan. The easiest way to pay back the Izwe loan is by devising a personal repayment strategy even before getting the loan. This will enable you to clear the loan even before the due date. 

Few steps for repayment of Izwe loan:

1. Make sure there is a sufficient balance in your account on the due date. 
2. They will automatically deduct your monthly installment from your account according to your contract.

What are the repayment terms?

Izwe loans have a repayment term calculator that enables you to know and identify the best monthly repayment option. You can repay Izwe loans by monthly installment terms, which can be up to 18 months.

Three steps for Izwe Repayment term calculator

1. Choose your amount
2. Enter your term
3. Click the ‘calculate’ Repayment button. 

The result will pop up for your repayment terms.

How do I check my IZWE loan balance?

Having gotten the loan you need from Izwe and you also want to keep tabs on your loan balance. In order to inquire about the outstanding balance of your loan or savings account. You can visit the Izwe branch or contact them at +254 (0) 709 530 000.

Do I need an Izwe App on my phone for easy online Izwe loan application and processing?

Mostly, you might not have the time to visit the Izwe office for a loan application. They have made the loan application easy, faster and convenient. You can always apply for Izwe loans with your mobile phone, tablet or personal computer, to save you the stress which makes it one of the mobile money loans in Ghana.

The following steps will guide you on how to get the Izwe App:

1. Download Izwe App for an android phone on Izwe website
2. Install the app

For you to use the App to apply for Izwe loan:

1. Open the app on your phone
2. Select lender’s products
3. Fill in the required field correctly
4. Accept the terms and condition
5. Click submit

Once you submit, they direct you to a consultant who gets in touch with you, once they approve you.

Why should I choose Izwe?

There are benefits in using Izwe loans that make it different from other loans in Ghana. Besides that, these benefits have over the years kept its customers. 

These benefits include:

1. Easy online application process
2. No paperwork involved
3. Fast approval  

Izwe loans contact details

There may be some further clarifications you would want. In order to do that, you can visit any of their branches or SMS Izwe to +233 (0) 507 732 5666 for a callback. Or you can contact them on +233 (0) 302 208 222 and they’ll call you back.

You can also check Advans Savings and Loans to compare your options

Conclusion

In the time of financial difficulty, getting a loan from a financial institution or a credit union could make sense. Izwe loans make it simple to get financial help within 30 minutes of application for the loan. Besides that, they offer an easy savings and investment strategy to grow your money. With the need for quick loans, it would be cool to consider Izwe loans.

With MTN Xtratime, subscribers can borrow airtime when they run out of call cards and pay back later. This service helps many users, especially when their credit runs out at odd times and they cannot recharge. In this article, I will discuss how you can borrow airtime from MTN in Ghana with no stress. Also, you will discover the eligibility, requirements, and uses of MTN Xtratime.

About MTN airtime service (MTN Xtratime)

MTN Xtratime is a loaning service that MTN customers can pay back later. The minimum monthly spending requirement for this service is ₵200 for 3 months. You can use it if you qualify and request the credit. Whenever your credit runs out, you can always ask for the maximum amount you qualify for and pay it back later.

If you run low on airtime and can’t buy a recharge card, MTN Xtratime saves you time when you have an urgent call to make. Usually, it could be after midnight, during a meeting, or in a tight space. All you have to do is dial the USSD code and borrow the maximum amount of credit you have access to.

What are the requirements for MTN Xtratime?

Prior to borrowing that airtime from MTN Nigeria, here are a few recommendations you should consider:

1. You must have an active MTN SIM card.
2. Also, you must register for your SIM.
3. An active member of the network must have twelve (12) months’ experience. 
4. Your eligibility for this offer is contingent on your frequency of recharging for three (3) months.
5. To request extra airtime, you need to recharge between ₵0 and ₵75 every month.
6. Ensure that you do not owe any money to the service. Unless you pay down your existing or previous Xtratime debt, you cannot borrow twice.
7. A service fee of 10% will apply to each transaction.
8. If you recharge your line, MTN will debit the amount of airtime you borrowed.

Note: only prepaid customers have access to this offer. 

What is the best way for me to check my eligibility for the MTN Xtratime?

You can check if you are eligible for MTN to borrow me credit known as XtraTime service by;

1. Using *606#, clicking ‘My Account’, then selecting ‘1’ to see eligibility.
2. By sending STATUS to 606, you will receive a status notification.
3. You can confirm your eligibility by dialing 606 and being guided by the voice prompt.

How to borrow airtime from MTN

The following steps will guide you on the easiest way to borrow airtime from MTN in Ghana.

1. Dial *606#, pop-up menus should appear.
2. MTN airtime borrowing instructions
3. Then select Xtratime.
4. You can select how much airtime you want to borrow.
5. MTN will send you an instant message following your selection of airtime. However, this message confirms acceptance of the 10% service fee.
6. You will receive your Xtratime request after confirming the fee. Also, MTN will deduct 10% of the borrowed credit from your account.

What is the alternative code to borrow airtime from MTN?

You can either use the USSD code *123# or Interactive Voice Response (IVR)

For USSD code *123#,

1. Use your phone dialer to dial *123#.
2. MTN airtime borrowing instructions will appear.
3. To access the Xtratime menu, press 6.
4. From the list, select Xtratime.
5. Please select the airtime amount you prefer.
6. Confirm the message you received from MTN.
7. They will disburse your airtime request right away.
8. 10% service fee also applies for this offer.

For Interactive Voice Response (IVR),

This is simply another way for MTN customers to borrow airtime. However, it’s like speaking to an MTN customer service representative. But this time you’ll get an automated response to your queries. Hence, they will direct you to a customer care agent to attend to your request.

1. It is as simple as dialing 606 and waiting for it to process.
2. Using MTN to borrow airtime.
3. Choose the language you prefer by following the instructions.
4. Click on XtraTime to hear the speaking voice telling you the amount you can borrow.
5. You can select the amount you prefer by entering the required number.
6. Upon acceptance of the service fee of 10%, the system will request confirmation.
7. MTN will notify you they credit your account with MTN Xtratime after successful confirmation.

Read more on MTN offers thus: MTN Qwik loan review

Are there extra fees for MTN Xtratime?

Whenever you borrow airtime from MTN Ghana, the company deducts a service fee of 10%. Therefore, you would receive only 90 percent of the amount you requested. If you borrow ₵500, for instance, you will get ₵450 instead of ₵500 because MTN takes ₵50. At certain times, like during the Covid lockdown, they usually loosen up the percentage borrowed.  

How to check your Xtratime balance

To check your remaining Xtratime balance:

1. You can access the Xtratime menu by dialing *606#.
2. Select the “Check Xtratime Balance” option. 
3. If you require a result, reply to its relevant code.
4. They will display the remaining balance of your airtime in a message.

Uses of MTN extra time

You can use MTN Xtratime airtime for any of the following activities:

1. Voice calls
2. MMS
3. MTN Play
4. Prepaid Data Bundles
5. SMS
6. MTN backup
7. Premium rated services
8. BlackBerry from MTN
9. MTN Caller Tunez

Conclusion

It takes only minutes to borrow airtime from MTN in Ghana. Therefore, this excellent service ensures that you’re never left without airtime when you most need it. Always make sure you are eligible for MTN Xtratime before requesting a loan. Also, ensure you only choose the amount you can easily payback on your next recharge.

A recourse loan is a loan you can count on during the trial period. Most of the time, getting a loan in Ghana is challenging, regardless of its purpose. Many financial institutions that offer loans offer these procedures stress-free now. Ghanaian faces several challenges with a loan that involves collateral. Collateral becomes an obstacle to accessing loans once financial institutions involve it. However, because of their requirement of collateral, most lenders and financial institutions require vehicles or land. Therefore, those who can’t present it have a very hard time. However, with this loan, it’s more frustrating as a lender can go beyond the agreed collateral. But this happens for a reason or reasons. In this article, you will discover the reasons lenders go beyond the collateral. As we will discuss the meaning of a recourse loan. Also, comparing recourse loans and non-recourse loans.

What is a recourse loan?

They are loans that enable lenders to recoup their investment if a borrower cannot pay, and the asset of the underlying loan is not enough to cover the investment. They secured recourse loans forms of financing. A lender can take legal action if the debtor defaults. However, the lender collects all the debt, or recovers other assets that were not used as collateral for the loan.

You can check out debt consolidation

Key points to note about recourse loans

When considering getting a recourse loan, it is important to note:

1. Defaulting on this loan allows the lender to take the collateral and any other assets that the borrower owns.
2. In cases of this loan, a lender may seize deposit accounts and sources of income.
3. Contracts for resource stipulate which assets are available to the lender.
4. It usually makes up most hard money loans.
5. Those who lend prefer it, while those who borrow prefer non-recourse loans. Collateral becomes the only asset the lender can seize.

Example of a recourse loan

Consider that a small tech repair business owner plans on expanding and no longer works from home. He purchases a property in which he can work with a ₵900,000 recourse loan. During the first year of his business, his debts cause it to falter. A decline in the market causes the property’s value to fall to only about ₵700,000. In order to recoup the additional ₵200,000 he owes, the lender can take action against his other property, such as his home and his bank account(s).

How do lenders recover their money?

If the borrower defaults on an unsecured loan, lenders may take action against their personal accounts, as well as their business accounts. In most cases, they can also go after someone’s income, such as garnishing their wages until they pay their debt. Also, apart from commissions and bonuses, lenders can take money directly from an individual’s pension and retirement plan.

Differences between recourse loans and non-recourse loans:

A non-recourse loan uses the asset as collateral only. In traditional mortgage loans, for example, there is no recourse to the lender. The home itself serves as collateral. Therefore, lenders can only seize the home if the borrower defaults on the loan. The lender cannot demand repayment from a borrower’s bank account or any other asset that the borrower owns.

Alternatively, you can consider hard money loans as recourse loan, even if they’re used to gain real estate.

Example of a non-recourse loan

Many traditional mortgages are non-recourse loans. The only collateral they can use is the home itself. When the borrower defaults on their mortgage loan, the bank takes possession of the house and sells it to sort the loan. Lenders, however, cannot take action against any remaining balance and must therefore take the loss.

Read about non-performing loans.

Meanwhile, a lender may offer this loan to borrowers, knowing that they likely cannot repay them. In order to gain possession of the property, lenders target borrowers who default on their loans. Basically, the lender is hoping to collect and sell the property for more than the original loan was worth, so they pursue this route.

Pros of a recourse loan over a non-recourse loan

An advantage of recourse is that they benefit the lender, whereas non-recourse loans benefit the borrower. However, the difference between recourse and non-recourse comes into play if the debt remains unpaid after they sell the collateral. Other benefits include:

1. If the loan balance remains after collection of the collateral, lenders can pursue other assets owned by the borrower. 
2. Meanwhile, non-recourse lenders do not have permission to go after the borrower’s other assets. Even if a balance remains after they dispose of the collateral.
3. Also, lenders who offer recourse have greater power since they have more assets at their disposal to claim for repayment. 
4. It reduces the lender’s perceived risk associated with borrowers who are less creditworthy.

What is the interest rate on a recourse loan?

It usually has a lower interest rate. This is because lenders can reduce the risk with it. However, banks and other financial institutions often make these loans when they tighten lending standards. Credit markets tighten as the economy grows uncertain, and lenders are less willing to lend to borrowers to compensate. The lack of access to credit during these times causes many borrowers to accept more restrictive terms, including destroying assets. Notwithstanding the interest rate.

Conclusion

A recourse makes the borrower liable for the entire amount; if the borrower defaults, the lender will pursue other means to recover the funds. Loans used to purchase real estate that is backed by hard money are usually recourse loans. When a borrower defaults on a loan, lenders can recoup their losses by seizing personal bank accounts and even their regular income. Therefore, always reconsider before going for a recourse loan.

Loans in Ghana without collateral offer options of loans to borrowers who cannot offer their assets as backup for a loan. Besides that, some other borrowers might not have enough assets to offer as a collateral for the loan amount they need. However, considering the fact that getting a loan in Ghana could be an uphill task, despite the reason you need it. This idea of offering a loan to people who need it is absolutely astonishing despite the economic situation world-over.

However, the demand for collateral by lenders makes 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 so on.

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. However, because of the advancement in technology, you’ll most likely access them online.

Where you can get loans in Ghana without collateral:

1. Paylater app

You may receive a loan in Ghana without collateral, paperwork, or guarantors with the Pay Later app. One of the more intriguing parts of Paylater is that if you suggest someone to the site and they repay their credit on time, you earn a discount on your next loan. Complying to the agreed-upon repayment terms allows you to get higher amounts.

The following is how you can apply for Paylater loan without collateral:

1. Download the Paylater loan app from Google Play.
2. After that, fill out some basic personal information.
3. The system will evaluate your application for credit eligibility once you complete it.
4. You will receive the money within 5 minutes of approval.

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

The requirements for Zidisha loans include:

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

3. 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.

The requirements for Carbon Ghana include: 

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

The disbursement of money is quick for you to meet your immediate needs once they approve it. 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.

4. 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. And these transactions could buy airtime, 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 to access your loan.

5. 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.

6. XpressLoan

MTN offers yet another fast mobile loan in Ghana. It’s offered to MoMo customers who use their mobile money account frequently and routinely reload their MTN phone with airtime. Note that they do not fix the charges of this credit product. As a result, while applying for a loan, it is critical to understand the terms.

To get an XpressLoan;

1. Dial *170#
2. Select ‘Financial Services’ from the drop-down menu.
3. In that order select ‘loans,’ ‘XpressLoan,’ and then ‘Get a loan.’
4. Input the PIN for your mobile money account.
5. To choose the amount you prefer, go to ‘View Offers.’ The options usually range from 50 to 1000 Ghanaian Cedis.
6. Confirm the payback schedule that was agreed upon.

What are the pros and cons of loans without collateral in Ghana?

Every loan type comes with pros and cons that every borrower must beware of. These pros and cons would help you decide whether you can take the loan.

Pros of loans without collateral are:

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

Cons of loans without collateral are:

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

Conclusion

When the storm of financial problems has passed, there is always a sigh of relief and a breath of fresh air. Especially when you have a remarkable alternative, like a personal loan to cater for your personal needs. Or a business loan to help you invest or expand your business and other loan options. 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 a perfect condition. So that you can access another loan in the future.

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 students loan trust fund?

You must be eligible or meet requirements for you to get any form of loan. The programmes 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 for Ghana citizens only that are resident and schooling in Ghana.
4. The National Accreditation Board must accredit the programmes 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 for other reasons that the borrower may need for his/her studies. You can click to get more information on other student loan in Ghana and how to apply.

How do I apply for the students 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 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 a SSNIT contributor, religious body, MMDA or a 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 students loan trust fund?

The knowledge of the interest rate on every loan helps you to know whether you can pay back. 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. Students loan trust funds do not have additional charges.

How fast can I get the students 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 of student loan trust funds should expect their loans within 2 weeks. After successful submission of 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 students 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 students loan trust fund?

It is very 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 is really cool to explore.

You can make your loan repayment through:

1. Cash or Cheque repayment may be outright or by instalment 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 customised 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 students 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 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 customised 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 students loan trust fund include:

1. Up to 10% of inflows of money in the Ghana Education Trust Fund.
2. Willful contributions which will be tax deductible. 
3. Collection of resources from Ghana’s international partners interested in the advancement of tertiary education.
4. Corporate sector contributions that 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).

Also, check on 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.

Direct savings and loans is a financial institution in Ghana that majors in giving loans to individuals. Financial obligations normally require funds and individuals need funds to meet their financial obligations. Also, this situation doesn’t consider whether an individual is financially buoyant. All it demands is rapt attention to whoever is at its receiving end. But as an individual who needs funds to get things done. What else could you do when you don’t have any other means of getting funds immediately? In this situation, many people get a personal loan, business loan, travel loan from a notable financial institution. Also, Direct Savings and Loans are at the forefront of providing loan offers to their customers. In the rest of this article, you’ll 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.

The following products and they offer their customers:

1. Savings Accounts

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

Features:

1. Target Client are all customers
2. Minimum Amount of loan is GHS 20
3. You have an initial deposit of GHS 50
4. The interest rate is 5% per annum
5. The loan maturity is N/A
6. Withdrawal frequency is a maximum of 4 times a month
7. 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:

1. Their target client is all customers
2. The minimum loan amount is GHS 20
3. It has an initial deposit of GHS 20
4. With an interest rate of 5% per annum
5. It has the maturity of N/A
6. The account has a withdrawal frequency maximum of 1 withdrawal per month
7. 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:

1. It is for all customers
2. Minimum amount–N/A
3. Initial Balance–N/A
4. Interest Rate–N/A
5. Maturity–N/A
6. Withdrawal frequency–N/A
7.  Maintenance/service fees–N/A

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

Features:

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

4. Lending

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

Direct SME Loan

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

Features:

1. The loan tenor is a maximum of 12 months
2. Repayments take place usually weekly, bi–weekly and monthly.
3. 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:

1. The loan tenure exists to a maximum of 6 months.
2. Repayments of the loan occur bi–weekly or monthly.
3. The minimum loan amount is GHS 10,000.
4. 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:

1. It has a loan tenure maximum of 3 months
2. The repayments are strictly 12 weekly instalments
3. Its minimum loan amount is GHS 1,000
4. 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 the 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 to emergencies or quick turnaround situations. However, this loan product is more suitable for business customers with seasonal activities and it shows irregular inflows. Therefore, this product allows flexibility.

Features:

1. It has a loan tenure of 6 months maximum. After which you repay the loan amount they gave you with interest.
2. 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:

1. The loan tenure is a maximum of 6 months
2. The minimum loan amount is GHS 5,000
3. 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.

Features:

1. The loan tenure is a maximum of 12 months
2. It has a minimum loan amount of GHS 5,000
3. 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:

1. It has a minimum loan amount of GHS 100
2. With maturity of 1 to 10 months
3. Its repayment frequency is usually on monthly installments
4. The interest rate is 6.50% pm
5. 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:

1. Their target client are all their customers
2. Its minimum amount is GHS 1,000
3. It has maturity of 3 months, 6 months & 12 months
4. With interest rate depending on your amount and duration
5. 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:

1. Their target client is all their customers
2. It has a minimum amount of GHS 100
3. With an interest rate of up to 10% per annum. And it depends on your savings balance.
4. They calculate your interest payment daily, and they pay you monthly
5. 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. Also, they 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 organize 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.

You can also read up on Fido Lending Services.

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:

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

You can also read more about Multi Credit savings and Loans.

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

1. Have money transfer reference number.
2. A national ID such as; passport, voters ID, driver’s license that is valid.
3. Provide your mobile phone number.
4. 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 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

Most times, uncertainties could make you seek cash flow or funds in personal or business situations. And getting a loan can be a reliable financial backup you could use to pull yourself out of such terrible situations. However, Direct Savings and Loans understand the need to financially advising their customers about their products. Also, this helps the customers to make the best financial decisions for themselves. Besides that, they help advise their customers to invest their money wisely. However, repayment of the loan after getting it improves your credit score. This is because avoiding to repay your loans will ultimately reduce your chances of getting a loan in the future.

Classification of non performing loans is simply the divisions of loans that are less than 90 days past due. Especially when there is high uncertainty surrounding future repayments. However, if the debtor resumes payments again on a non-performing loan, it becomes a re-performing loan. Once the debtor has not caught up on all the missed payments. Also, in banking, they consider commercial loans as non-performing when the debtors make zero payments of interest or principal within 90 days. Also, they consider commercial loans to be non performing when they are 180 days past due. Continue reading to discover the types, causes, solutions, and the classification of non-performing loans. 

What is a non-performing loan? 

A non-performing loan (NPL) is a loan in which the borrower has not made repayments of principal and interest for a specified period. Also, we refer to a situation whereby a customer who borrowed a loan cannot make the scheduled payment for at least 90 days. Usually, the specified period varies on the type of loan and financial institutions

How does a non performing loan work?

The bank considers the loan as default when it deems it non performing. Getting full repayment of these loans from the debtor is unlikely. However,  no matter the status of the default payments, re-performing loans automatically become non-defaulting loans. This is after the defaulter makes payments again. Also, note that a default and a loan in arrears do not have the same meaning. Usually, lenders consider a default on a loan as a breach of the loan agreement when the borrower cannot meet his obligations. However, a loan is in arrears when there has been a delay or complete failure in making principal and/or interest payments. 

Types of non performing loans

There are various classifications of non-performing loans, but the three most important ones are:

1. A loan in which the specified date of repayment of both principal and interest has elapsed, yet the loan remains outstanding.
2. Also, a loan in which the debtor has capitalized, refinanced or delayed 90 days’ worth of interest. This is because of a breach in agreement and the inability of the debtor to clear the remaining debt within the specified period.
3. Installment loan which is less than 90 days, but the financial institution no longer believes the debtor will make future payments as regards the debt.

What are the causes of non performing loans?

Non performing loans don’t just occur, there are some factors that give rise to them. Some of these factors include:

1. Lack of proper skill among loan officials is a key factor in a high percentage of non-performing loans.
2. Unhealthy competition among financial institutions reduces loan standards, contributing to a high tendency for non-performing loans.
3. High costs of operation, especially the increasing prices of input materials and energy, can have a considerable impact on banks’ non-performing loans. However, these reduce the earnings of businesses, even small and medium enterprises.
4. Inability to identify the purpose of the loan and its validity. Usually, this determines how the funds required for the payment of interest and the generation of repayment of capital.
5. The character of a borrower as a wilful defaulter is another key factor that has increased the rate of non-performing loans in Ghana.

Impact of non performing loans on banks

Evidently, there are cases when a financial institution or a lender has a large percentage of non-performing loans. Such that the ratio of non-performing loans is higher than the total loan ratio would consequently lead to a high risk of loss. As much as it affects the lender, it leaves the borrower with lesser eligibility for getting loans from the lender in the future.

What is the negative impact of high non performing loans in Ghana?

High non-performing loans stretch most banks thin. In Ghana, these loans adversely affect the banking industry and shareholders. A widespread problem of non-performing loans erodes the strength of banks. Also, it is the regulators’ responsibility to keep these loans from affecting bank reserves.

What are the causes of the increase in non performing loans in Ghana?

There are several factors that give rise to non-performing loans in Ghana. Some of these factors are inherent and within the control of the borrower, and external factors trigger some. We will discuss the factors in these instances. 

Some internal factors that can cause high non-performing loans to include:

1. Loans that the borrower has managed poorly.
2. Funding a business with loans rather than equity or shareholding.
3. A flagged character of the borrower.

While some external factors that can cause high non-performing loans will include:

1. Existence of high interest rates, including hidden charges.
2. Staggering government policies.
3. Riots, unrest, and natural disasters.
4. Exchange rate fluctuations.

Finally, some banks influence some factors themselves and they include:

1. Unethical professional conduct by the bank’s staff or representatives.
2. A rigid loan monitoring process.
3. Inadequate risk management for credit structure.

What are the solutions to non performing loans?

There are some factors that help to reduce non performing loans. They include:

1. Profiling clients: Combining information on assets and consumer behavior can help orchestrate industrialization. However, low-value clients can be addressed within a pre-defined set of actions. Also, high-value clients are addressed by reducing recovery periods and costs.
2. Enhancing legal services by considering the value recovered and revising the compensation model accordingly. There is an improvement in recovery time and a reduction in legal expenses.
3. Develop a retail strategy library, which will make sure that they offer the best product to clients based on their behaviors, income, and net worth.
4. Reforming the business model: redesigning the business model to integrate commercial and credit lending processes to facilitate collaboration across these two departments. 
5. Monitoring unexpected depreciation is done with advanced analytics, such that information on property value, collateral, borrowers, guarantors is combined. It is possible to reduce loan losses by 5-10% through better collateral management.
6. Establishing a collateral recovery data quality program: The evaluation of collateral agreements and defining dedicated crash programs will allow for an improved collateral data set that will assist in better recovering from a crash.

Read on Bad debt to see how you can prevent it just like a non-performing loan.

Conclusion

We consider a loan a non performing loan when the tendency of receiving repayment is very low. Criteria for classifying a non performing loan is the number of days past due. Also, the overall financial performance of the borrower, and the assessment of the collateral. Finally, the number of days past due is not the only sign that a loan is to be non performing and not the most accurate predictor of loss in certain cases rather, past due days provide strong indications of the likelihood of default.

Loans in Ghana serve as the financial backup for borrowers. There are many needs that require immediate attention that emergency loans can cater to. Whilst some people choose to take out personal loans to meet their personal needs. Alternatively, they could get a business loan to grow their business operations, and so on. There are, however, other forms of loans available from financial institutions for a variety of purposes. However, it’s not ideal to get a loan you cannot repay within the time frame you agreed with the borrower. Let’s explore the meaning of loan, the types, pros and cons and so on in this article.

What is a loan?

A loan is a sum of money that an individual or companies borrow from financial institutions. This money helps them sort planned or unplanned events and other needs. Hence, the borrower incurs a debt. The borrower has to pay back with interest within a stipulated time. It can also mean money you receive from a bank, friend, or financial institution with a future repayment of the principal and interest.There should be an agreement between lenders and borrowers regarding terms of the loan. They do this before they give the money to the borrower.

Most times, financial institutions in Ghana require the applicant or borrower to present an asset as collateral. They always outline the collateral in the loan document. Financial institutions give loans to individuals, business owners, companies, and governments. The major reason for taking out loans is to get funds to solve one’s needs. The interest rates and additional fees are a source of revenue for the financial institution/lender.

Forms of Loans in Ghana

There are many forms of loans in Ghana. You’d apply for a particular type of loan based on what you need it for. They categorise loans in Ghana into secured and unsecured, open-end and closed-end, and conventional types.

1. Secured and Unsecured Loans

A secured loan is a loan with some form of collateral. For example, many financial institutions require applicants/borrowers to bring documents that show ownership of assets. They hold on to this asset as collateral until the borrower repays the loans in full. Assets that serve as collateral include personal property, stocks, and bonds. Many individuals and companies apply for secured loans when they want to borrow enormous sums of money. The asset/collateral serve as a guarantee.

Features of secured loans include:

1. Borrowing limit
2. Low interest rates, and 
3. Long repayment duration. 
4. Examples of secured loans are car loans and mortgages.

Invariably, an unsecured loan is a loan with no asset as collateral. That is why the name “unsecured loan”. The financial institution assesses the borrower’s financial background before giving out the loan. They do this to ensure the borrower’s capability of repaying the loan. The major deal is not in borrowing, but repayment. This is because the posterity of most financial institutions that offer loans is in interest and recovery of money.

Features of unsecured loans include:

1. Borrowing limit
2. Short repayment period
3. Competitive interest
4. Examples of unsecured loans are education loans, credit card purchase, and personal loans.

2. Open-end and Closed-end Loans

An open-end loan is a loan where an individual has the liberty to borrow over and over. Examples of an open-end loan are lines of credits and credit cards, though there are credit restrictions. The highest sum of money that you can borrow at a time is what we know as a credit limit.

Closed-end loans do not allow individuals to borrow when they have borrowed until they have repaid them. As a borrower, makes repayments of the closed-end loan. There is a decrease in balances.

Hence, whenever the borrower wants more money. He/she will apply for another loan from scratch. However, the borrower needs to present documents to prove that they are credit-worthy. Some examples of closed-end loans include student loans, car loans, and mortgages.

3. Conventional Loans

This is a loan that you’d use when applying for a mortgage. This loan has no insurance by government agencies. One example of conventional loan is Rural Housing Service (RHS).

What are the things to consider before applying for a loan in Ghana?

As a prospective applicant, there are few things you need to consider before you apply for a loan in Ghana. Some of these considerations are:

1. Income

Income is a major consideration and assessment before applying for any kind of loan. For instance, an employee needs to submit pay slips. Also, a salary letter from their employer. However, if the applicant is a business owner. He/she needs to submit his tax return for the past one or more years. They can require your invoices sometimes.

2. Credit History and Credit Score

An applicant’s good credit history and score is a sign that he/she can pay back within agreed time. The chances of getting your loan approved solely depend on the credit score. Also, a good credit history and score attract a favourable term.

3. Monthly Obligations

This is another major key consideration when applying for loans. Apart from income, it is utmost important to assess monthly obligations. Financial institutions will not be willing to approve your loan when your monthly obligations are equal to your income. This is part of the reason most financial institutions require a list of monthly expenses . 

Types of Loans in Ghana

The loans in Ghana vary regarding the purpose for the loan. There are various types of loans in Ghana with different terms and conditions. Types of loans in Ghana include:

1. Personal loans  

Almost all financial institutions offer personal loans. This type of loan can serve various purposes. You have the liberty to use it however you like once it is your personal needs. Personal loans are often easy to get when you have an average credit score and history. Although they are mostly unsecure. It is usually a small amount of money with a high interest rate.

2. Cash advances 

This is money you get in advance from payday loan institutions or your credit card company. Borrowers apply for cash advances when they need quick money. Cash advances are easy to get, though they come with a high interest rate. It is also a small amount of money with a high interest rate.

3. Mortgage loans 

This is a loan with an enormous amount of money. It is a loan for real estate or purchase of a house. Mortgage loan is a secured loan. The property you are purchasing can be the security for the loan. This means that if you don’t repay back on time, the financial institution can take back the property. Mortgage loans in Ghana help you purchase a house that takes many years to save for. They come with a long-term repayment period. The interest rate is relatively low and tax deductible.

4. Home-equity loans and lines of credit 

This is the type of loan where homeowners can borrow against equity. The loan amount or equity is the difference between the key value of your home and the debt of your mortgage. These loans are good for home improvements or debt consolidation. It has a low interest rate.

5. Student loans

These are loans that help you finance a college education.one of the benefits of this loan is that you don’t have to pay back while a full-time college student. It has a competitive interest rate. 

6. Debt Consolidation Loans

A consolidation loan is the combining of multiple bills for credit cards into a single debt. The repayment is by one monthly payment. This means lower interest rates and fewer payments each month.

7. Payday Loans

This is a short-term loan with a high-interest. They design payday loans to bridge the gap from one paycheck to the other. They use payday loans by repeat borrowers living paycheck to paycheck. Interest rate on payday loans is very high.

8. Small business loans 

Many financial institutions in Ghana offer this loan as a start-up for businesses. Small business loans have security. You will need to submit some personal assets as collateral. They require a business plan as evidence. Small business loans come with low interest rates.

9. Car loans or Auto Loans

This is a secured type of loan for property. They use it for the purchase of a vehicle. You can also lose the vehicle to the financial institution when you don’t pay back as supposed. Apart from financial institutions, this loan can come from dealerships. Auto loans from dealerships always have a high interest rate.

What type of loan in Ghana should I apply for?

After you have taken a decision to source for a loan. There is a need to understand the agreement of that loan. Also, you need to consider the assets you’ll have as collateral. Make more enquiries in any part of the agreement you don’t understand.

Also, always bear the repayment terms, your monthly obligation in mind, not forgetting the consequences of missing payments.

Advantages of Loans in Ghana

Loans in Ghana have a lot of advantages. These benefits motivate the residents of Ghana to source for loans when facing financial limitations. Some benefits of loans in Ghana include:

1. Convenient and quick application.
2. Competitive interest rate.
3. Fast documentation process.
4. Considerable repayment period.

List of financial institutions that offer loans in Ghana

Below are some of the financial institutions in Ghana that offer various loans above:

1. Fidelity Bank Ghana
2. CalBank Plc
3. Republic Bank Ghana
4. Fido Money Lending
5. Bayport Ghana Savings and Loans
6. SamBoad Business Group LLCF 
7. GN Savings and loans
8. SRF Money lending services
9. Jireh Microfinance Ltd
10. Izwe Savings & Loans Ghana
11. Quick Credit & Investment Micro Credit Ltd.
12. Dalex Finance and Leasing Company Ltd
13. Christella Software Solutions
14. SIDE Capital Campus Loan
15. CIANO loans
16. SIC & SIC Life Insurance
17. BayPort Financial Services
18. Kokomlemle
19. Multiseed Micro Credit Services Ltd
20. STAR Microfinance
21. Best Trust Capital
22. Bimicrofinance

Conclusion

A loan is a sum of money that an individual or company borrows from a financial institution. Loans link borrowers and lenders. There are many types of loans depending on the purpose you need them for me. However, remember to consider those things we mentioned above before applying for a loan. This is because it’s better not to get a loan you cannot repay than getting it. For it will alert credit bureaus who check how faithful you are with your debt repayments. And if they find you wanting, they’ll penalize you and because of this you might not accept any form of loan anytime soon.