10 interesting facts about loans

Salary week has never looked so far! Ah

You’ve considered taking a loan so many times but sadly there are so many myths surrounding them. You don’t know what to believe anymore!

This is why Irorun is bringing to you 10 interesting facts to dispel these myths.

Loans are as old as time

Did you know that the history of loans is traced as far back as 4000 years ago? It began with farmers borrowing capital for their business using grains and farm produce as repayment options (Look how far we’ve come now with digital lending!).

Fear loan sharks

“Patience is a virtue” — but this cannot be said for people like Ade who borrow from loan sharks (Ade you sef like problem o!)

Loan sharks are lenders without license who usually charge very high interest rates and can sweet talk you into taking more loans than you can repay..

They always seem friendly from the get-go until…bam! You miss your repayment date!

Loan sharks are illegal in most countries including the USA, UK, Norway etc…

Payday loans are for the working-class

Just as the words are — Payday loans are loans given out to be paid back at your next payday. This especially works well if you are a 9–5er or an Entrepreneur with a steady inflow of cash monthly.

Most loans don’t need collateral

Not all loans require you to have an asset as collateral. Some personal loans only need you to have a steady inflow of cash to be eligible.

You can use personal loans for emergencies without having to use collateral.

Some religions frown at loans

In the Islamic religion charging of interest on loans is termed “Riba” — which is forbidden under Shari ‘ah law. They find it unethical and exploitative to charge high-interest rates on loans from persons who are most likely at their lowest point.

But at Irorun , you can always reach out to us at support@irorun.com to choose a loan/repayment structure that is just right for you!

Banks primarily make money from loans

So next time your bank is stressing you out with so much paperwork or says an unwavering NO! to your loan request — Ask them what’s the colour of their problem, abi they don’t like money too?

Money is not the only thing you can borrow

Leasing allows the owner of an asset to extend the right to use their property on loan. Essentially, instead of borrowing so much money to buy that asset, you can, in a sense, borrow the asset itself!

A lease is an agreement between the owner (of a house, land or any tangible asset) and you which allows you to use the said property for an agreed period in return for regular payments. E.g a rented apartment.

You can own a home without paying upfront

Although it’s not so common in this part of the world, “Mortgage” refers to loans you can use in purchasing or maintaining a house, land or any other type of real estate.

Usually divided into a series of regular payments (15 to 25 years). Hehe! Your lenders want you to live a long healthy life.

Guarantors are liable too

You most likely have that one person who’ll come through for you no matter how crazy the circumstances are. (Eish! Lucky you).

A guarantor guarantees to pay back your debt if you default. When you hear the word “guarantor” — think “fairy godmother or sponsor”. Don’t repay their kindness with evil and just leave them stranded. They are only there to help you out in tough times.