FINANCIAL LITERACY LESSON 5 COMPLETED

I learnt more on this lesson, something sparkling, guess what? Borrowing tips like, whatever amount borrow form individual or bank institution, there comes a particular percentage to pay on it and it's been spread over a period of time to complete the payment monthly or yearly. Some amount to borrow attract collateral before the borrow deal is seal up because of their size and long time of paying back. The ideology of borrowing depend on an individual perspective, some borrow to build an estate, some borrow to buy a car, some borrow to start a powerful multidimensional business, that lucrative and profit oriented, all these I see as a way of securing one future. But permit me to say this, there are project one must not borrow money to do at all , like borrowing to buy a car, is a liability to the core.

According to Kirthi, the head of training adviser on Financial Literacy lesson 5:

Let's me share this, money borrow is called LOAN from an individual or from bank, from money lender, microcredit institution, this is what is term PRINCIPAL , and to all beneficiaries one thing is significant and that is been CREDIT SCORE, this is the financial capacity to pay loan back over a period of time scheduled together, with term and conditions well clear from the onset, like the following:

Interest rate, duration of payment of the loan, terms and conditions of the loan, legality of the loan, requirement of a collateral for the loan, requirement of a guarantor for the loan, option to foreclose, option to transfer and option to assign, all these have their serious implication on the loan paying back strategically with interest. Making it a serious matter, with conscious plan not to default in paying back at any time.

In summary, Anyone who takes loan must know how to manage the loan in the following ways:

1. Prioritize the payment of the loan strategically over the expenses.
2. Avoid taking loan to pay another loan by avoiding falling into debt trap
3. Take time to study the loan interest rate before you take it, full plan on how to back must be sketch out too

This module of the FINANCIAL LITERACY ON LESSON 5 was the completing part and its so elaborate in raising one intelligent quotient and becoming skillful with detail of taking loan and paying it back as at when due

Congratulation on my completion of FINANCIAL LITERACY TRAINING LESSON 1-5