5 Questions to ask your lender

If you’ve ever wondered what questions you should ask a prospective lender before you say Yes! to the loan. We’ve got you!

No more falling prey to bad and unethical lenders and that’s why Irorun has curated 5 questions you can ask your lender:

What other fees are there?

Some people believe that all there is to a loan is the money they intend to borrow (principal) and the interest. Fortunately, Irorun is always willing to educate and clear up myths.

There could be more. In fact, there are always more. Many lenders include processing fees that are either; to be paid before you receive your loan, fees to maintain your loan or fees for the repayment of your loan.

Each fee varies depending on the loan amount, loan type, repayment terms and the lender. Some fees are non-negotiable; meaning that if you are to be charged, the amount cannot be changed.

You must know that some fees may not apply to you but an unethical lender who wishes to take advantage of your ignorance may charge you ruthlessly and that’s why it’s important for you to ask your prospective lender for all fees connected to your loan, why they’re charged and if there’s any room for adjustments. Here’s how you can report unethical lenders.

When does the late fee start counting?

The late fee or a penalty charge is the fee you have to pay when you are unable to pay back your loan as of when due and as such, it is dependent on the lender. Lenders tend to have a grace period that is given to borrowers when they fail to repay their loan on the due date.

Some lenders typically give a grace period of 3–60 days, depending on the size of the loan. These differences between lenders’ grace periods make it important for you to question your lender on when your late fee starts counting. (To prevent a case of “Had I known …”).

Usually, failure to pay after the grace period will lead to you being reported and registered as a loan defaulter, depending on the loan type and terms. Here’s how to repair your default history with the credit bureaus after clearing your debt.

How long will the loan process take and how soon do I receive funds?

Just like every other important process, loan processing takes time depending on the loan type and amount, total loan processing (which includes application, approval and funding) can take 3 to 7 business days on average for online lenders and credit unions. Although Irorun will process your loan within a couple of hours!

Remember to ask your lender about the length of time it may take to get your loan approved and disbursed especially if you are in a tight spot and need the money as soon as possible.

Is there room for loan term restructuring?

This particular question should be of high priority, because an emergency or uncontrollable event may happen at any time, so you need to be prepared to make adjustments to accommodate these situations.

A lost job or other unforeseen circumstances could affect your ability to pay back your loan. This is why you must prioritize finding a lender that offers room for restructuring loan terms. If you find that for some reason it may be difficult for you to meet up with your loan obligations to Irorun, shoot us an email at support@irorun.com so we can work it out.

Not all lenders offer this, so it’s best to make enquiries about it from your prospective lender. Knowing that you have the option of restructuring your loan term if you hit a roadblock calms any anxiety you may have about taking out a loan. The goal is to jump and pass lenders with rigid terms that can cause high BP.

What are the terms and conditions I should be aware of?

Pleasee!!! Read and re-read the fine prints…

You shouldn’t take out a loan without knowing the complete terms and conditions involved. Endeavor to read the given terms and conditions, and ask questions about the things you don’t understand because there could be some hidden clauses in the fine print.

The terms and conditions govern everything about the loan you take, so there is no room for ignorance ma’am. If you can’t understand the terms and conditions, ask the lender to clarify or have someone there with you who can understand. As a rule of thumb never sign a document you’re yet to grasp what it entails.

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If you have more questions, send us a message at support@irorun.com.

As always we’ll be available to provide answers and maybe even solutions!

Until next time…Tell someone new about us!