Is there anything we can do in this life without having financial strength? I guess you know there is non...On a daily basis, we have reasons to go into business, build a home, get an apartments, buy a new car, pay school fees or execute a particular project. Some projects or businesses are more capital intensive to another, therefore we often need cash more than what we can finance alone.
Since we don't have enough money, in most of these instances, we might need to source for finance outside our own purse. We might need to contact a second or third party for loan or any financial assistance. This is what we can call a loan and the process of getting it is not what we can take unserious.
Getting a loan, either from family member, friends, financial institutions or government, before taking such decision, there are lot of questions you have to ask yourself and answer properly before taking such before jumping out there and going into debt.
Weather you are to get a loan without collateral, with your debit card or its just a car loan. Whatever the case is, the following questions would be relevant.
- Should I Get A Loan To Finance My Project/My school/Apartment? There is best time for everything, if you get loan when you are not supposed to, you put yourself in financial mess. You need to decide and look out to getting a loan as a very important decision you don't need to overlook. Don't take loan because you have someone who is willing to lend you, take loan because you needed it and its the last option you can go for.
Forecast into what the future has for you and find out if your future look secure, or is there are a reason for you to be concerned about the future loan repayment?
- How Much Loan Do I Need? Now that you've decided to obtain a soft loan, this is one of the foremost questions you must ask yourself and be convinced about it before you make an advances to source for loan. I believe you already know the cost of the project you want to execute, you know the percentage of cash you can raise from your personal finance and that will automatically gives you an estimation of what you need to source for from outsiders.
If you are yet to calculate all these, then don't go for loan. Don't go for loan in excess of what you needed for a particular project, and don't go for less. Going for less will will make you achieve nothing because the money is not enough to execute your plan and going for extremely much will give you more burden of repayment.
- What Is My Income Projection For The Nearest Future: Can my income justifies this loan? You are in better position to know your financial position better than anyone. So take a proper look at it and decide what to do.
Consider your income in relation with how you spend. After you take a hard look at all of your incoming versus your outgoing, can you really afford to take out a loan? If YES...good. The key to weather you can borrow money or how much in particular is entirely based on your income.
- Where Should I Source For Loan? There are lot of means through which you can source for loan. Should you go for a bank loan, get a loan at work, from friends or family. There are lot of agencies that are always readily available to grant you loan. For you to decide, you need to think of which one among them make it easy for you to secure loan and the repayment.
- How Will The Payments Affect Me? Getting loan could be easy, we must all agreed that when it comes to repayments, it could be so difficult and tough when its not properly planned. You just need to take proper consideration to so many circumstances.
Whether you need this loan for your business or for some upgrades around your home doesn’t really matter; how will the repayment affect you? That is the major questions you need to ask. Kindly sit down and write out your monthly or yearly budget, and include that repayment plan into it.
See if its will be easy, and see if you can actually cope with your monthly source of income after incorporating your expenses into it.