4 important actions for borrowers before obtaining loans

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Study the causes and controls within the list of recommendations

The Committee for Information and Banking Awareness in Saudi banks recommended that loan applicants adhere to sound borrowing standards before requesting loan amounts from banks and financing bodies.

The committee added, through its official account on the “Twitter” site, that the criteria for optimal borrowing include determining the objective of the loan and the actual need that will be directed to it, while ensuring that it is directed to the basics and not just luxuries, along with making comparisons between more than one financing agency before taking on borrowing in order to identify the terms and conditions. And the actual cost of the loan and choose the most suitable among them.

The committee cautioned the need to inquire from the financial body granting the loan about all costs and fees that are required to be paid upon obtaining financing, in order to assess the extent of the borrower’s ability to pay and meet the value of the monthly installments on their specified maturity dates.

The committee’s recommendations to borrowers also included the necessity to search for other alternatives instead of borrowing in a way that are better and less expensive, because entering some money or allocating it for emergency expenditures is important to reduce the amount of financing that the borrower intends to obtain or search for an additional source of income that helps to achieve the desired goal.

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