After getting to know multi-use credit along with its advantages and disadvantages, you are now ready to apply for KMG for your needs.
But did you know that it is dangerous if you choose KMG products?
The proof is that there are many irresponsible parties who try to make profits with illegal advertisements everywhere that offer multipurpose credit without clear rules.
You can see examples of advertisements at the intersection or on the internet.
Generally, these institutions provide attractive offers, such as long tenors to attract prospective debtors. But, who would have thought that behind all the interesting offers there must be a gap that hurts you. For example, interest rates are suffocating.
In order not to be a wrong victim of KMG, try applying the following 8 tips when choosing a multi-use credit, we believe you can get the most profitable offers:
Look for a High Credit Ceiling
Some banks set a higher credit ceiling than other banks, and this is the type of KMG you must choose.
Why?
Because with a high ceiling, the higher the number of loans you can get. However, that does not mean you take a lot of loans without any other consideration!
It is wise to determine the number of loans you should take.
Look for Low Interest Rates
If this one characteristic is certainly already commonly used in choosing a credit product.
Interest is one of the most influential components of the loan, considering the interest will continue to be paid until the entire loan is paid off.
Thus, don’t rush and compare several loan products from different financial institutions to find the right interest rates for you.
Look for a Long Tenor
If you do not want to fail because of the high installments, one solution is to choose KMG with a long tenor.
It is true that the interest that must be paid is getting bigger, but of course the monthly installments will be smaller.
Well, so that your assets are not confiscated because of default, try looking for KMG products with a long tenor, huh!
Look for Quick Disbursement of Funds
Loh? Isn’t that said, don’t be tempted by the fast disbursement process?
Yes, you really should double-check if a fast disbursement is offered by an irresponsible institution. But if you get a fast disbursement offer from a guaranteed financial institution such as a bank, why not?
As long as you are sure of its security, it is legitimate to take this one offer.
Look for a small penalty fee
When choosing KMG products, interest rates and the amount of installments do need to be considered. But did you know that many other costs can appear alongside these two components of costs?
Yes, for example, an accelerated repayment penalty fee. This fee arises if you intend to pay off KMG faster than the time agreed by both parties before.
However, if you are optimistic that your business will be successful and you can pay off your credit faster, then be smart in finding loans with small penalty fees.
The penalty fees that are commonly imposed on customers who pay off credit faster are 2% to 3% of total loans.
This fee is charged in exchange for profits that can be obtained by the bank if you pay it according to the agreed time.
Look for Free Fees
In addition to the penalty fee, there are many additional costs could be charged to the debtor know! For example, provision fees, stamp fees, and administrative costs.
When you apply for a loan, regardless of the type of loan and where you borrow it, ask clearly all the additional costs. Thus you will not be surprised later if you incur these costs.
But it’s even better if you can find a loan that is free of charge or at a cheap additional cost. So, don’t forget to ask about this extra fee when choosing KMG!
Look for loans that are easy to use
As you know, the requirements for borrowing money are not easy. However, of course you are better off looking for loan products with conditions that are easier or not complicated.
Thus, you will not be troubled later because you have to take care of this.
Choose a safe and secure financial institution
As previously stated, many illegal financial institutions are now abusing their ability to lend.
Therefore, it is highly recommended to look for financial institutions that are safe and secure, for example, from banks that have operated long enough and have good reputation.
At the very least, you must know the address and all information about the financial institution to be chosen, including all information regarding the terms and conditions of the type of loan you will take.
