Principles of responsible lending
Before taking a loan or credit, you should consider several important aspects. The loan must be for purposes that we cannot finance with our own funds. The loan amount must be adapted to our financial capabilities. We cannot consider a loan as an ordinary support of the family budget, because borrowing for such a purpose can end up being drawn into a debt spiral. A loan is an obligation that carries the whole family. Family members must know for what purpose it was concluded, when and under what conditions it will be repaid. Each loan must be returned together with the costs specified in the contract (commission, interest, additional fees).
Late repayment - consequences
In case of delay in repaying part of the loan, the borrower must take into account additional costs and formal and legal consequences. In accordance with the credit agreement, the lender has the right to charge additional commissions arising from: the need to send reminders and demands for payment, debt collection, interest for late payment. In addition, the borrower should take into account the possibility of reporting late repayment to the debtor base. Such a message can make it difficult or impossible to get a loan in the future.
Consequences of non-payment
If the borrower does not pay the debt, the lender has the right to take steps to collect the loan amount along with additional costs. One option is to submit the loan for collection.
Compliance with national legislation on loans
Quick cash loans (so-called non-bank loans) are provided on the basis of the Civil Code. Some credit companies also comply with the provisions of the Consumer Credit Act. In this case, clients are provided with an information form typical for consumer loans.
APRC and commissions related to the provision of credit
APRC reflects the ratio between the total costs incurred by the borrower and the amount of the loan received. The definition and method of calculating APRC is contained in the Consumer Credit Act, which details what costs are taken into account when calculating the rate. Due to the fact that the calculation methodology is identical in each case, the APRC is an objective tool for comparing different loan offers. When applying for a quick loan, the following costs should be taken into account: preparation fee, fee related to the extension of the loan repayment period, insurance costs, registration fee (usually a payment of 1 rupee for identity verification), collection costs (reminder).
Loan extension rules
The borrower can apply for an extension of the loan repayment period. Usually, to extend this period, you need to submit an application and make an additional payment. The application for changing the repayment period must be submitted before the date of repayment of the obligation.
Portal activity
The CEYLON LOAN portal maintains a rating of loans available online. Specialists have reliably collected offers of non-bank loans together with their main characteristics, so that you can conveniently and quickly find a loan that meets your expectations and go to the lender's website. All offers come from companies operating in accordance with current legislation. You can read about the rules of operation of non-banking companies that provide loans on the website of the Financial Supervision Authority of Sri Lanka. However, more details about the portal's activities can be found in the Regulations and Privacy Policy.