A title deed loan is a loan secured by a home title deed as collateral. It is typically granted for a period of three to seven years by Mwananchi Credit Ltd., although the terms of the loan can be renegotiated at any time during the first year. If a borrower defaults on the loan, we foreclose on the property and sell it to recoup our losses.
Keep reading the following list to make sure you’re not making any of the top 13 mistakes when getting a title deed loan.
Below are the 13 common mistakes that borrowers should avoid when getting a title deed loan.
1. Taking out a Title Deed Loan just because It is Easily available with no clear idea of how It will be used
Most people take out loans just because they have them easily available at all times, and they do not even have a clear idea of how they will be used. This is a big mistake because it is important to know the purpose for which you want to get the loan in order to avoid any future problems or regrets.
2. Taking out a Title Deed Loan for someone else
It is important to avoid taking out a title deed loan for someone else because you might end up borrowing more than you can afford and also end up in situations where you are forced to pay back the loan with no one benefiting from it.
3. Taking out a Title Deed Loan without checking the interest rate
It is important to check the interest rate for you to know the amount that you will be paying when you take out a loan at Mwananchi Credit Ltd.
It is important to check the amount of interest that you are going to have to pay on your loan because it can only help reduce your monthly expenses and also give you more money at the end of the month so that all of the money that you have earned can be used for the things that you want to do.
4. Not knowing about all of the conditions before taking out a Title Deed Loan
It is important to know all of the conditions before taking out a Title Deed Loan at Mwananchi Credit Ltd because this will help you avoid any future problems with your loan and also help you get better rates on your loans.
5. Getting a Title Deed Loan and not knowing what the consequences are if you fail to repay on time
Not knowing what will happen if you fail to repay on time can cause problems later on especially if an agreement has not been made on the consequences of not repaying on time.
6. Taking out a Title Deed Loan without knowing the consequences of defaulting on payments
It is important that you know what will happen if you default on your payments and avoid taking out a title deed loan without this knowledge. It is advisable that you find out from people who have had similar experiences or seek advice from Mwananchi Credit Ltd, Our staff is well informed about this subject matter.
7. Borrowing money to pay off another loan or credit card debt
It is important that you seek advice before borrowing money to pay off another loan or credit card debt because it might just be a waste of time and money. You should never borrow money with the intention of paying off your existing debts because this will not help resolve the problem but rather complicate it further. It is advisable to seek the advice of a financial advisor or a trusted friend before borrowing money to pay off your debt.
8. You don’t know the requirements for a title deed loan?
The key factor you should know about getting a title deed loan is that it’s different from a mortgage. A mortgage is based on your ability to repay a loan. But a title deed loan is based on the ownership of the asset.
That’s why there are separate requirements for a title deed loan. For example, you need a good credit rating to get a title deed loan. That’s because it’s based on who owns the asset. If you don’t have a good credit score, you won’t be able to get a title deed loan. That’s because Mwananchi Credit Ltd will want some kind of security, or collateral, to back the loan.
You also need to know that you can’t get a title deed loan when you’re in bankruptcy. Mwananchi Credit will want to make sure you can pay back the loan.
9. You don’t have the right documentation
Another important thing to remember is that you need the right documentation . For example, you need to have proof of ownership of the asset.
That means you have to have a title for the asset. If you don’t, Mwananchi Credit Ltd can ask for a title search. If you have a mortgage, you can use the property deed. But for a title deed loan, you can’t use a mortgage as proof of ownership.
A title search is when Mwananchi Credit checks the title of a property to see who really owns it. A property deed is an original document that shows ownership of the asset.
Mwananchi Credit Ltd will usually want both of those documents to back up your loan request.
10. You don’t have enough information
You need to have enough information. If the value of the asset and your debt is not clear, you won’t be able to get a title deed loan. You have to provide some kind of estimate when you make your loan request. But you can’t accept the first offer that comes in.
You also have to have at least some kind of collateral so Mwananchi Credit Ltd has some kind of security if you don’t make the loan payment.
You can’t accept a partial payment. You have to make the full payment so that we have some kind of collateral. A partial payment usually means you’re going to pay too much.
11. Not Taking Photos of the Asset Before Approval
You need to take photos of the asset. Mwananchi Credit Ltd will want to see photos of the property. We will also want to know if the asset is damaged in any way. A photo of the asset tells us a lot more than just a description of the property.
If you have photos of your assets, it makes the approval process go faster. We can get approval before we send someone out to check on your property.
Mwananchi Credit Ltd will need to see photos of your assets before you get approval for a loan request.
12. Not Getting The Right Loan Amount
You need to get the right loan amount for your property or business. The amount that you ask for doesn’t matter as much as how much you actually need for your business or property improvement project. If Mwananchi Credit Ltd gives you more money than you really need, it could be very bad for both of us in the long run. If we give you too much money and then we have to take back some of it later, then we lose money too and that is not good for either of us.
If we give you too much money, then you will have to pay us back for a longer time than you really need to. This means that we lose money because we have to pay interest on the loan for longer than it should have been.
If Mwananchi Credit Ltd gives you too much money, then you will also owe more money than what is really needed for your property or business improvement project. This means that your business or property improvement project won’t improve as quickly as it could have because there is too much money available to do it.
If Mwananchi Credit Ltd gives you more money than is needed, then the process of getting approval and starting the project will be slower and harder than it should be.
13. Making the Application Online
You should make the application online. Mwananchi Credit Ltd will usually want the initial application and a commitment letter online. After the application is accepted, then the loan application process will start.
How to make a loan request online
is on this link: https://www.mwananchicredit.com/quick-loans-application-form/
When to Start the Loan Process
The loan process usually starts with an initial application, which you will have to make online. If the loan is approved, then you need to start the loan process by paying the loan amount and signing a contract with Mwananchi Credit Ltd for a period of 6 months, 1 year, or 2 years. This means that you must pay back a portion of the money that was lent and sign a contract for the length of time that was agreed upon.
What happens if I don’t pay back my loan?
If you do not pay back your loan, then Mwananchi Credit Ltd will charge a monthly interest rate on your loans, which is called the “Repo Rate”. The repo rate is calculated by how much money you owe after all interest has been paid on your loans and by subtracting the amount that you originally borrowed. If you do not pay back your loans, then the repo rate will continue to increase on your loans and will be higher than the original loan amount you initially borrowed.
What happens if I fail to sign a contract with Mwananchi Credit Ltd?
If you do not sign a contract with Mwananchi Credit Ltd, then your credit history will be affected, and it will affect your future chances of getting a loan in the future. If your credit score falls below 720 or below, then this means that you cannot apply for another loan in the future or be approved for another loan no matter how good your financial situation is.
What happens if I fail to make payments on my loans?
If you fail to make payments on your loans, then Mwananchi Credit Ltd will charge interest rates on your loans, which are called “Repo Rate”. The repo rate is calculated by how much money you owe after all interest has been paid on your loans.
Finally, you should make sure you follow the process when getting a title deed loan at Mwananchi Credit Ltd. That means you should do everything you need to do before you apply for a loan. You should also make sure you follow the process. That means you should make sure you get all the required documents and do everything you need to do.