Know Your Rights before Choosing the Loan Lender
Borrowing is no more a painful and embarrassing issue because borrowing has become a common affair to people belonging to all walks of life. You can find more and more online lenders nowadays than few decades ago.
Banking has become simple and uncomplicated nowadays. Yet every borrower should be aware of the facts regarding their rights as borrowers and the modus operandi of the lenders before they find a suitable lender to rely on for monetary support.
Banking has become simple and uncomplicated nowadays. Yet every borrower should be aware of the facts regarding their rights as borrowers and the modus operandi of the lenders before they find a suitable lender to rely on for monetary support.
Below are given few points to bear in mind in order to opt for apt borrowing option.
Change of terms:
After the terms and conditions are established and intimated to the borrower, the lender cannot make changes in the already set norms without informing and without the willingness of the borrower.
Repayment schedule:
Before the borrower begins to repay the installments of the debt amount, the lender should give a copy of the repayment module to the borrower. This will help the borrower to plan his financial activities accordingly.
Repayment liberty:
The borrower may repay the entire loan amount or a part of it any time without paying a penalty for making untimely payments.
Lender and borrower- understanding:
The lender should always help the borrowers to avoid default by giving some lenient excessive time duration of repayment if the borrower has a genuine reason for his inability to repay the due amount on time.
Change of address:
The borrower should always remember to inform the change of address to the lenders to avoid confusion in the future.
Contact time and place:
A lender should follow the prescribed time for contacting the borrower. A client can be contacted during day time and if the borrower has asked the lender not to call at a certain time, the lender should oblige to the request to keep a good customer service. The lender should contact the customer only at the place according to his choice. If no particular place is mentioned, then it would be always best to contact the borrower in his home but never in the work place, where he may feel embarrassed.
Notice in advance:
It is a significant responsibility of the lender to inform the customer about his dues and issue an adequate notice period for repayment. The notice period should be not less than seven days before the lender begins any proceedings against the customer.
Recovery agents:
In case of the customers not able to repay the borrowed amount, the lenders engage professional recovery agents to do the intervention to collect the debt amount. It is essential for the lenders to either post the information regarding their agents on their website or inform the customers through a phone call or e-mail.
Change of terms:
After the terms and conditions are established and intimated to the borrower, the lender cannot make changes in the already set norms without informing and without the willingness of the borrower.
Repayment schedule:
Before the borrower begins to repay the installments of the debt amount, the lender should give a copy of the repayment module to the borrower. This will help the borrower to plan his financial activities accordingly.
Repayment liberty:
The borrower may repay the entire loan amount or a part of it any time without paying a penalty for making untimely payments.
Lender and borrower- understanding:
The lender should always help the borrowers to avoid default by giving some lenient excessive time duration of repayment if the borrower has a genuine reason for his inability to repay the due amount on time.
Change of address:
The borrower should always remember to inform the change of address to the lenders to avoid confusion in the future.
Contact time and place:
A lender should follow the prescribed time for contacting the borrower. A client can be contacted during day time and if the borrower has asked the lender not to call at a certain time, the lender should oblige to the request to keep a good customer service. The lender should contact the customer only at the place according to his choice. If no particular place is mentioned, then it would be always best to contact the borrower in his home but never in the work place, where he may feel embarrassed.
Notice in advance:
It is a significant responsibility of the lender to inform the customer about his dues and issue an adequate notice period for repayment. The notice period should be not less than seven days before the lender begins any proceedings against the customer.
Recovery agents:
In case of the customers not able to repay the borrowed amount, the lenders engage professional recovery agents to do the intervention to collect the debt amount. It is essential for the lenders to either post the information regarding their agents on their website or inform the customers through a phone call or e-mail.
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