6 Things To Remember Before You Apply For A Lazada Loan

Back then, shopping was only for those who can afford it. If you’re not comfortable bringing cold cash with you, then you can always use a credit card to pay for your purchases. Convenient, isn’t it?

Thankfully, fin-tech companies entered the market and changed the game. Fin-tech companies became a bridge for many unbanked Filipinos who don’t have access to products and services offered by banks. In fact, even without a credit card, you can now pay for your items on installment basis.

If you’re shopping in Lazada, then you’ll be happy to know that the company partnered with several fin-tech companies that allows you to shop now and pay later for your purchases.

Still, don’t get too excited. Even if shopping is made easier and more convenient, this doesn’t mean you can apply for a Lazada loan anytime.

Here are things you need to remember to make sure that you won’t swim in debt:

Tip No. 1: Buy Only What You Need

During this challenging time, it is advisable that you only stick to the essentials. Lazada Loans won’t limit you as to what you can buy, but do you really need those kitchen containers and baking equipment when you already have tons?

Therefore, be mindful of what to buy. Buy only what you really need instead of satisfying your craving for something new.

Tip No. 2: Know Your Options

As of this writing, Lazada Loans partnered with eight merchants, all offering competitive and reasonable products for Filipinos.

Before you say yes to one, make sure you explored the other seven as well. Not all merchants will offer lower interest rate or longer term. Some merchants will only limit you to P10,000 while there others who could let you borrow as much P30,000.

Check out what each company can offer to help you determine the best partner for you. You can learn more about these merchants here.

Tip No. 3: Longer Is Not Always Better

At least when it comes to loan term. Loans payable in less than a month have minimal fee, although this could be heavy on the pocket. On the other hand, aiming for the maximum loan term would mean paying a recurring interest every month, which could also be heavy on the pocket.

Lazada partner merchants have built-in calculators in their website, which you can use to give you an idea on how much you can pay given a certain amount and loan term.

Tip No. 4: Take Note Of Your Loan Details 

This is important. Lazada Loan merchants will send a copy of the Loan Contract, which indicates important details such as term, due date, amount due, and schedule of payment among others.

Keep a copy of this loan contract and take note of the details, particularly the schedule of payment.

Merchants take payment behavior seriously. Any delay in payment could negatively affect your standing and you might have a hard time applying for another loan.

Tip No. 5: Take One Loan At A Time 

This is also important. Lazada won’t stop you from borrowing from various merchants to finance your shopping needs. Still, at the end of the day, can you pay for all of those loans come due date?

That being said, take one loan at a time. Stick to one lender first and then apply to another lender AFTER you pay the earlier loan. This will make it easier for you to manage your loans and prevent you from drowning from debt.

Tip No. 6: Always Pay On Time 

This is a must. Borrowing money means you need to pay your lender at a given time. Make sure to pay them exactly and accordingly. Any delay will not only incur you additional interest fee but also penalty fee, which is computer per day of delay from the scheduled payment.

For instance, your due date is on September 1 and you were able to pay your loan on September 10. You will pay an additional interest and penalty for 10 days. You don’t want this to happen.

Lazada Loans offer ease and convenience in shopping. Still, don’t get too excited. Take note of these tips to ensure that your financial standing remains positive.