“Make sure you do the following things while applying for a credit to avoid non-performing loans”
1. Find reputable financing company
This is beneficial to ensure that the company will continue its business until we repay the loan. In addition, make sure that the financing company is registered at the Financial Service Authority (Otoritas Jasa Keuangan – OJK) so that its financing activities is supervised.
2. Choose the repayment method which is in line with the repayment capability
In financing, there are methods that can be offered such as pay higher down payment in advance to get less instalment amount or otherwise pay less down payment but higher instalment amount later. Know your own financial condition. Ask for credit simulation from financing company to predict the repayment amount that must be paid and the term of the repayment.
3. Note the penalty
Penalty will be charged if you are late in making the repayment. Therefore, understand the penalty mechanism to anticipate the situation where you in any event cannot make the repayment to the creditor in a timely manner. Get loans from paydayloansnow
4. Decide slowly
Do not let the marketing officer affect you since what you want may not be the same as what they offer. Find more information on the credit simulation, interest, down payment, security, repayment method, cost, penalty and insurance or other facility or obligation during the term of the loan.
5. Check the credit agreement
This is useful to avoid you from anything that could happen to you as the customer/debtor which cannot repay the loan in timely manner. While drafting the agreement, note the provisions such as the instalment amount, the term of the loan, security required by the financing institution as creditor, penalty, and the enforcement of security. Ask sufficient time to review the credit agreement prior to agreeing and signing it.