Use credit prudently, customers advised
ACCESS to credit has been made easier with the advent of technology, although borrowing is only necessary when money is needed for prudent use.
Currently, commercial banks are responding to applications for loan facilities at a faster rate but it advisable for customers to borrow money and use it prudently.
With the advent of technology, digital financial solutions, coupled with other innovations, the turn-around time in which banks respond to applications for loan facilities has tremendously reduced.
This has made access to credit easier than was the case sometime back, says Bankers Association of Zambia (BAZ) Public Relations Officer, Miriam Zimba.
Ms Zimba in her write on Let’s talk banking said: “while technology has altered the way loans are disbursed, the cannons of prudent borrowing remain unchanged. This entails that only borrow when you need the money.”
She encouraged customers to follow rules as they contemplated on obtaining a credit facility from a commercial bank.
Ms Zimba expressed concern at the negative sentiments some bank customers had over obtaining loans from the financial sector such as attributing loans to modern slavery.
“A lot of sentiments raised on loan facilities from commercial banks are usually shrouded in the information gap that exists to help the customer fully understand their obligations as beneficiaries of credit facilities,” she said.
Ms Zimba encouraged customers not to be in a hurry to append their signature for a credit facility without having read
through and fully understood the terms and conditions of the loan facility.
Where unsure, she explained, customers should always ask for more information on the terms and conditions, and if possible, request for more time before signing off the document.
Ms Zimba said where possible, customers should get advice of a financial advisor to debunk all the clauses of the loan facility that they may be unfamiliar with prior to signing the agreement.