Do you repay interest accumulated with loans?

[Bookwormlux]

Just yesterday , I received a call from a representative of a loan company that I took loan from In 2020 and paid back , although after the stipulated date , that I was still owing them some amount of money. I was really shocked that they would still require me to pay any extra amount of money since I have already cleared the amount that I collected from them .

I had to explain to this rep and make him know that I had paid the money , and he even promised to check to see , while apologising for any inconveniences .

I really do not know why these loan companies do things like this . The most challenging part is that they were expecting me to pay about 73 percentage more of the initial amount of money that was given to me .

I do not think I would ever repay a loan together with the accumulated interest rate , most especially in such case line this were they were expecting me to pay such a high and ridiculous percentage than normal .

Have you been in such situation before , how did you go about settling the issue ?
Waiting to read your view

 

[Ayuba Ernest]

One thing I've not tried and not thinking of doing is collecting loan, it can be really frustrating. You get a hiked up interest about times two of the original loan amount. Some loan company keeps disturbing their customers even after years of payment. Another thing I'm afraid of is scamming, most agents working for loan companies can use your details for fraudulent activity. Your account can be tempered with without your consent and permission. What you should do is to avoid lending money from unverified loan apps and platforms. There are a lot of verified loan lending apps in Nigeria which you can chooses from and also see their reviews on Google play store. Back to your question, before lending a loan, an agreement has to be made by you and the person lending you. Interest are meant to be paid and cleared and when cleared, cannot accumulate again. It was something agreed upon so yes, you out to payout the interest rate, but if you've done that already, just let them be and try not to borrow again. Borrowing leads to some kind of setbacks of plans. I'll rather borrow from someone I know than using a so called borrowing app for loans.

 

[Kingsley]

I understand your plight this guys are indeed crazy, mostly as touching those people issuing loan through loan applications. Those loans application companies have a very funny way of calculating their interest rate and they sometimes pretend to be nice to their customers, and they present their interest rate in a way that it might seem friendly. In fact there was a time they really disturbed me to come and pick up a loan offer but I was very reluctant to go for it. They even promised it was going to be an interest free loan. But since I was not sure of it I didn't bother to go for it. As I have always known them to be exploiters and they just like taking advantage of people. There was a case with a friend of mine that accessed their loan sometimes ago and he was very regular with the payback. So it now got to the period of the final payment as soon as he made the payment and uploaded the teller he was not confirmed by the company until after his due date and they were now forcing him to pay the accumulated interest for the days he didn't use, that was entirely their faults.

 

[Rachael]

Yes, most loans are attached with interest rates and the longer you fail to repay the loan, the more accumulation of the interest rate. There is no way you can avoid repaying interest accumulations and this is why people should stop taking excessive loans. Due to desperation, business owners most especially do take loans even without reading or ascertaining how the terms and conditions can effect their business. They tend to obtain high yielding interest rate loans, coupled with short duration on repayment and when the repayment duration is fast approaching or elapse, they would still be struggling to make profits so they could refund to avoid too much accumulations and this makes the whole process very pressurizing.


Most of these online loan apps are so discouraging for individuals to borrow money because of the exorbitant interest rate they exude. The best way to avoid bad debts is to have a backup plan or collateral which you can easily sell to pay off the loan or better still, if you need a capital of 100%, it is advisable to get half of the money from your personal savings and perhaps the remaining half through loan and with this method, you would help yourself by reducing some pressure.

 

[Kendy]

I understand your point so well but one thing you should know about taking of loans is that there is always an agreement according to your write-up you positive that you are borrowed the money since 2020 and you were called to be informed that you're still owing them some debt because you paid after the stipulated date which might be the cause of the accumulations but what beats my imagination is why they will call you after a space of two years to repay such interest rate. When taking a loan, there is always an agreement of both parties either in the bank or online loans and the most important thing is for you to stick to the agreement. There is certainly no loan company that will just dish loans to people without having an interest rate except it is government loans or empowerment loans. So in this case, I really may not know your stance on this but if there was an agreement to pay the loan then I think it is just the proper thing to do unless it is too excessive because I know that some of these loan apps do have ridiculous interest rates and this is the more reason I would never take loans from their apps.

 

[Abigael]

That is a very serious situation you got into. I wonder why the company did this to you. I bet that they did not know that you had actually paid back all the debts, which is a sign that they have poor record keeping. Which is very dangerous for a loan lending company.

On the other hand, the person who called you could be a con man who just wanted to see if they could prank you to paying the loan again. Good thing is that you were totally aware of the amount of loan you needed to pay back and you remembered that you had paid back.

One thing I know about loans is that whenever you take it, you should discuss first with the loan lender everything you need to know. Right from the amount you are taking, to the amount of interest you need to pay back and also the repayment date expected.

You also need to know what happens whenever you fail to pay back the loan on time. For some loan lending companies, they will add the interest rates when you pass the due date. So you should know this so that you plan yourself well to pay it back and avoid being scammed

 

[Mika]

I have never been in a situation where I had to pay more than what was initially agreed, I have never been in any situation where I was asked to pay "more." That's because when I get a loan for any company (banks, finance companies, cooperatives, investment companies, etc.) I read the terms and clauses clearly and sign only when I know all the clauses associated with burrowing. I pay the interest in time, if I am supposed to pay monthly, I will pay monthly, if the interest pay term is quarterly, I will pay quarterly. If I am required to pay the interest by 30th of every month, I will make sure to pay by 30th. In case I cannot pay by 30th and end up paying 2 days later, I understand I will incur late fees and I readily pay the late fees. Some lending companies also charge you extra fees for paying back loans early. Can you believe, you are required to pay extra just for trying to clear the loan early? I always avoid these companies. Sine companies increase the interest rate after you borrow. I always make sure that there is a clause in the agreement that clearly states that interest rates will not be increased for at least 2-3 years.