It is common knowledge that any type of loan should be borrowed with the intention of paying it back. Regardless of whether the loan amount is large or small, borrowers are legally bound to the agreed loan terms & conditions and it is a must to make due payments on a periodical basis – until the loan has been fully repaid. Remember that loan obligations are serious and it is extremely important to make repayments in a timely manner. Borrowers who refuse to make repayments accordingly and those who fail to fulfill the expected loan obligations are classified as defaulters – against whom legal action can be taken.
How LoanMe Handles Loan Recoveries
In order to ensure that repayments are collected from borrowers, we have partnered with a number of recoveries companies who act on our behalf to collect outstanding debt. By working with them closely, we implement a number of measures to recover funds and pursue loan repayments that are owed to us by borrowers.
As an initial step, we conduct a thorough analysis of all outstanding debt and contact borrowers in order to find out the reason behind their delayed payments. Our agents will then try to work out a solution to help with the situation and offer any possible courses of action that are available to customers – such as opting for a loan extension. Borrowers who fail to meet loan obligations, those who are unwilling to cooperate or those who cannot be contacted are classified as defaulters.
In instances where our agents are unable to contact borrowers or get through to them, our recoveries company will contact the guarantors, witnesses and employers of the defaulter – using the details that were provided during loan application. An investigation will also be launched to find out why repayments are not being made and a police complaint will then be formally lodged.
As a guarantor’s role is to make repayments on behalf of the borrower, they will be expected to meet legal obligations should the borrower fail to do so or in the case of collateral being insufficient.
Why it is Important to Make Timely Loan Repayments
To Avoid Legal Repercussions:
Obtaining a loan has a number of legal implication for both the lender and the borrower. Once an agreement has been made, both parties are legally bound to the outlined terms – which is why it is imperative that you take time to go through all the conditions very carefully, to ensure that you are capable of fulfilling your obligations prior to agreeing. Remember that as soon as you sign up for a loan, you have entered a binding contract and the legal consequences of being unable to pay your loan are very serious, having the ability to affect your life very drastically. Legal action can vary depending on what is agreed upon – ranging from lawsuits to securing collateral.
To Avoid Bad Credit:
Defaulting on a loan also affects your credit score. It is possible for even a single late payment to have a major negative impact on your credit score – which can affect your ability to get access to financial products in the future, for as long as ten years. In addition to not being able to access financial services, bad credit scores also affect your chances of securing a future job – as there are many employers who insist on checking credit scores as part of their recruitment process. A low credit score could ultimately lead to you being eliminated during the interview process as it implies that you lack the ability to fulfil your legal obligations. Additionally, bad credit scores also lead to high interest rates on credit cards as well as on future loans – as your score permanently defines your ability to pay back debt.
To Prevent Strained Relationships:
When you apply for a loan, you are asked to provide details of individuals to nominate as guarantors – as a backup measure, in case you find yourself unable to make repayments. Being nominated as a guarantor for a loan is a serious responsibility that is usually accepted by someone who is very close to the borrower and someone who declares their trust for them – legally. Being unable to meet your loan obligations affect not only the borrower, but their guarantors as well. As such, it is important to make due repayments properly, in order to avoid your relationship with your guarantor from being affected.
In addition to your guarantor, you are also asked to provide details of your employer during loan application. In some instances, your employer might be contacted and asked to help settle your due payments in the form of deductions from your salary. Such situations create unnecessary stress & hassle for your employer as well and could tarnish your professional reputation, potentially making it more difficult for you to secure jobs in the future.
Making Loan Repayments with LoanMe
However, we understand that making repayments is not always easy and that it is normal to face financially difficult situations at times. As such, we want to make it as easy as possible for you to make your due payments quickly, conveniently and safely – with a number of repayment options for you to choose from. Our aim is to make repaying your loan just as easy & convenient as applying for your loan!
With this in mind, one option that we provide our customers is the ability to make loan repayments via online card payments and bank transfers that can be done from the safety of their homes, no matter where they are. Another option offered is to pay at Cargills Food City supermarkets, Commercial Bank CDM machines and Pay & Go kiosks – where no commission is charged. By offering a number of repayment options, our goal is to help you make repayments with ease – by selecting the option that is most suitable for you.