Lending Activities

Some people are serial money borrowers. People can borrow money from cash loans , banks ,friends, family and colleagues at the same time. To overcome endless borrowing of money it is important to budget well and understand our needs and wants.

A loan is not a source of income, but a debt. Do not rely on cash loans/pawn shops for a living or as a way of supplementing your income. Avoid borrowing money to pay other debts and or buy wants.

Make informed decisions by shopping around and compare the interest rates as well as the terms and conditions provided by Micro Lenders. Signing of any financial contract is legally binding. If you cannot read, seek assistance. Ignorance is no excuse. NBFIRA advises that customers abide by the existing contracts.

In accordance with section 14(1) of NBFIRA Micro Lending Regulations, 2012: it is violation for any Micro Lender to:

• Require disclosure of the borrowers personal identification number (PIN) used for a bank card: and or
• take possession of a borrower’s bankcard, national identity card (Omang) or any other official document.
• ​Borrowing more than you can afford to repay can lead to severe financial difficulties.
   

Don’t borrow money for the wrong reasons!!!

• To buy things you don’t need to impress people you don’t like.
• you are unable to budget and spend your money wisely
• for entertainment or holiday
• because everyone has it
   

Good reasons to borrow money!!!

• pay for education
• an affordable car
• you NEED something and you can afford to repay it
• to buy a house
   

Be advised:

• In a cash loan transaction, the borrower has the right to information pertaining to their loan(s) ie;
• The principal amount
• The total amount payable over repayment period
• The total cost of credit
• The repayment period
• The number of instalments and the amount of cash instalment
• Total monthly cost of credit rate - Type of interest (fixed or variable) - Nature and amount of insurance