Life is expensive. Any adult Kiwi will tell you that. If you’re not buying food, you’re paying off bills and other expenses. However, what happens when you don’t have quite enough to cover all your living costs? Most people scramble for help from those around them, only to find that they’re struggling too. Small cash loans have offered much-needed relief for many people in NZ for a while. There’s much scepticism surrounding this lending practice, especially with the presence of chancers across the Internet. The following questions can help you distinguish a sketchy establishment from a legitimate lender.

#1: What Does Each Loan Option That’s Available Entail?

Every short-term lender offers a range of loan options, depending on what they specialise in. Each package follows its own repayment plan and interest rate, so you have to explore your options first.

#2: Are There Any Additional Costs That I Should Know About, On Top Of Interest?

We all know that loans come at a price, which we call interest. What many Kiwis don’t know is that some lenders add extra fees with small cash loans. Read your loan agreement thoroughly and ask for clarity on any numbers that don’t make sense to you.

#3: How Much Interest Will You Charge Me For A Small Cash Loan

As mentioned in the first question, there are different types of loans with varying charges of interest. Get clarity on this amount and make comparisons with competitors before you settle for one loan.

#4: What Happens If I Miss A Repayment?

Life happens – lenders know that. When unexpected expenses come up and eat into your repayment money, it could go in multiple directions. Repayment policies vary from lender to lender, and some are harsher than others, so ask your lender about the procedure in their establishment before you commit.

#5: How Long Will I Have To Repay The Loan?

Plan ahead for your repayments by finding out how much time they’re spread over. If you can afford a shorter repayment period, take it. It may add up to less money overall, depending on your loan agreement.

#6: Are They A Registered Financial Institution?

Most importantly, make sure that you go for a lender that complies with financial industry regulations. This offers you legal protection in the event of a dispute.

Got some questions of your own about small cash loans in NZ? Contact Acorn Finance today.