Start with the total
The amount you borrow is only one part of what you repay. Ask for the interest, every fee and the total repayment in writing. Compare offers using the same loan amount and term.
Understand the interest method
Flat interest is calculated on the original principal for the full term. Reducing-balance interest is calculated on the outstanding balance. The same stated percentage can produce different costs under these methods.
Check the fee treatment
Ask whether a fee is paid upfront, deducted from the funds you receive or included in instalments. Check what you will actually receive and what you will repay.
Plan for the whole term
A longer term may lower the monthly payment while raising total interest. Allow room for essentials and irregular expenses before choosing a repayment.
General educational information, not personalised financial advice. Your loan agreement and personalised offer determine your terms.
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