In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that debt until it is repaid, as well as to repay the principal amount borrowed. Kasaka loans Zambia
The document evidencing the debt (e.g., a promissory note) will normally specify, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and the date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower.
The interest provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice, any material object might be lent.
Acting as a provider of loans is one of the main activities of financial institutions such as banks and credit card companies. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.
Kasaka loans Zambia
Kasaka loans offer you a convenient way to access a cash loan, any time, day or night for whatever purpose, from your mobile phone. The loan is paid directly into your MTN Mobile Money Wallet with no bank account or security needed.
Repayment is easy, simply have enough funds in your MTN Mobile Money wallet on the due date in order to settle your loan.
Who qualifies for Kasaka?
To qualify for a Kasaka loan you need to be an MTN customer and meet the following criteria:
1. Be above the age of 18 years old
2. An MTN customer for more than 90 days
3. Have an active MTN Mobile Money account
4. Have no negative repayment history with JUMO
5. Have no outstanding loans with JUMO at the time of application
How to be a responsible borrower
Whether you need to buy stock for your business or cover an emergency expense, being able to borrow money quickly and easily can be a lifesaver. If you decide to take a loan, you’ll need to manage your debt wisely. Here are five simple tips to help you do that;
- Only borrow what you can afford to repay
Before you take out a loan, think about whether you can actually afford it. Consider how much you earn and how much you spend, and then decide whether you’ll be able to pay back the loan on the due date. If you think the loan will cause financial strain, we advise you not to take out the loan.
- Understand the conditions
Every loan agreement comes with certain terms and conditions. Make sure that you know and understand exactly what you’re being offered, including:
- The loan amount (how much money you are being offered)
- The term of your loan (how much time you have to pay it back)
- How much you have to pay back (the total cost of the loan)
- When your repayment is due (the date you need to pay it back)
- Use the money wisely
Carefully consider how you want to use your loan, bearing in mind that you’ll be paying interest on the money you borrow. Your loan could help you to buy extra stock for your business, allowing you to make more profit. This profit could cover the cost of the loan and leave you with additional money that you can use to grow your business. Or you may want to use your loan to cover an unexpected expense that you simply can’t afford right now. How you spend the money is up to you but try to avoid using it to buy things you don’t really need.
- Payback your loan on time
Make a note of your repayment date and plan ahead to ensure you have enough cash available. Repaying your loan on time will help you to build a good credit record, which may make it easier for you to get other loans and credit products. Remember, if you miss your repayment you will be charged extension fees. Not paying on time could affect your credit record, which could reduce your ability to take out any loans in the future.
- Stick to a budget plan
Budgeting is a good way to keep track of your money on a monthly basis. A simple way to do this is to add up your monthly income and subtract your monthly expenses. This will show you if you’re spending more than you earn. Cut out unnecessary expenses and always pay your debts first. It may take a while to get used to but following a budget plan will give you greater control over your spending, reduce stress and help you to build healthy money habits.
Credit tips provided by JUMO
JUMO is licensed by the Bank of Zambia as a non-deposit taking financial institution and provides loans to consumers and small businesses without any savings or collateral being required. JUMO has partnered with MTN to provide MTN Mobile Money customers with access to lending products made available through their mobile phones – any time, night or day.