Responsible Borrowing

When you borrow, you're expected to pay back the loan. We work very hard to source loan funds for onward lending. No free money with us. If you do not care to pay back your loan, then we'll make sure you care.

We do not prey on prospective borrowers, hence our constant admonishment to you to provide full disclosure at all times during your application process, to enable us provide you a suitable loan. We only want you to apply for a loan if you’re sure you can repay it in full on your due date and still manage your other outgoings.

 

Before you borrow money....

- Ask yourself, if you really need to borrow

- Look for other ways of getting extra cash, like friends, family or a part-time job

- If you think you still need to borrow, make sure that the loan offer is clear and you understand the terms, interest rate, extra fees and penalties

- Analyze your current financial situation and make sure you can repay the loan on time

- Remember it is cheaper to repay loans over a shorter period.

- Look at the small print, which explains all the terms and conditions.

- Remember that interest rates could change and your instalment could increase.

- Calculate extra costs like administration fees into your instalment

- Keep in mind that responsible use of loans depends on you!

 

 

 Tips on ensuring responsible borrowing

Respect the schedule

Always make payments on time. Inform us ahead of time and discuss the best possible ways out, if you can’t pay back. We will note that you care about your debt and you are a responsible borrower.

 

Pay whenever you can

If there is a possibility to pay off your loan earlier – do it! The sooner you are done, the more you save on interest.

 

Be explicit and honest

Let lenders know your real financial background. Don’t hide any details. This will help you look trusty and have an accurate and secure profile.

 

 

Keys to responsible borrowing...

Only borrow for need

You should never take out a loan unless you absolutely have to. Remember, borrowing money is going to cost you money. You shouldn’t be signing up to pay that extra money unless the loan is really worth it. So always make sure to ask yourself why you are applying for this loan.

Loans aren’t always the answer to your financial problems. If you need to free up cash, don’t forget to consider alternative solutions including cutting overhead, downsizing, or finding ways to increase your profit margin.

 

Know what's available

There are two parts to this. First off, there’s knowing what kind of loan you qualify for, and understanding what kind of loans and rates you can get.

 

Understanding your loan contract

Even before you’re approved for a loan, you should be asking questions. Is the interest rate the lender showing you the same rate that will apply throughout the life of the loan? What kind of fees and penalties are there, and are there origination fees that will be deducted from the principal? Can the lender provide you with an amortization schedule? And once you’ve asked all the questions you can think of, you should still take the time to read the contract. If what’s in the contract is different than what the lender’s been telling you, that’s a big red flag.

 

Affordability

You should never get a loan that you cannot afford. It can be tempting in an emergency to just get the loan and deal with the consequences later. But rest assured, “later” is going to come a whole lot sooner than you think. Make sure you can handle both the monthly payments and the overall cost. And here’s an additional tip: make sure you can afford more than the monthly payment. Give yourself as much wiggle room as you can. Because if your budget doesn’t leave room for surprise expenses, then it also doesn’t leave room for reality.

 

Use a loan calculator

There are plenty of free loan calculators out there. Use them first. They can help you see how much the loan will cost you overall as well as give you an estimate of monthly, weekly, or daily payments. With this information, you’ll have a better sense of how much you can afford to borrow

 

Know your debt-to-income ratio (For Businesses)

Your debt-to-income ratio is a comparison of your annual profit to your annual debt. If your ratio is 1.0 or greater, you’re in a good position for a loan. Of course, the better the ratio, the better your chances of getting a loan and lowering your costs. Anything below 1.0 should be a warning sign that you are spreading your income too thin, and that you should reconsider taking on any additional debts.

 

Give yourself a financial cushion

How much you should save will depend on the size of your business and the nature of your industry, but saving enough capital to cover six months of business expenses is ideal. Not only does this make you look like an ideal borrower to lenders, but it gives you the capacity to handle some emergency costs without having to borrow and lower your debt-to-income ratio

 

Borrow only what you can repay now and in the future

You should not apply for a loan amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action

 

Make your payments on time

When you take out a loan, make repayments on time. If for some reason you are unable to make a timely payment, call your lender. It’s always best to maintain communication with the creditor. Not only is it the responsible thing to do, but it may also help to protect your credit rating.

 

 


 

Responsible borrowers are responsible customers or clients. And one of the most important advantages of following these tips is that they provide you with even better opportunities down the road to expand your personal or professional or business, borrow at better rates, or even sell

Useful info

Sikamaster, is a 24/7*365 well-capitalised internet first, forward-thinking, safe, robust, resilient, smart and responsible direct lender for the working class and modern and/or scalable small, medium & large businesses, including startups.

SML is not; a microfinance institution, and neither a savings & loans company or a Specialised Deposit-taking Institution (SDI) of any form, kind or type. SML does not seek and/or accept outside capital.

Rolling out a secured, safer, convenient, revolutionary self-care, ethical, no upfront fee, direct lending platform in phases (three phases remaining, including key synergistic acquisitions and regulation for some aspects of our operations).

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Ghana's 24/7 Direct Financing Hub

Not all our loans require a collateral - But if your loan requires one, any property used as security (which may include your home or pensions and/or business assets, or personal guarantees) may be repossessed if you do not keep up repayments on a loan or any other debts secured on it. Our Repayment Assistance Programme is available to qualified borrowers only.
 
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Applicants must be 18 or over. All loans are subject to affordability, applicant verification, traditional credit checks and TDG Scoring via various national databases in accordance with Sikamaster''s responsible lending policy.
 
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Aside lending, our website offers information about saving, investing, tax and other financial matters, but not personal advice. If you're not sure whether Sikamaster Loans lending is right for you, please seek independent financial advice, and if you decide to borrow from us, please read our How We Operate before you proceed.