10 Must-Know Tips from BoG Financial Literacy Guide on Responsible Borrowing

1. Borrow Only When Necessary
   Don’t take loans for wants: borrow only for real needs or emergencies.
   
2. Know Your Repayment Ability
   Make sure you can pay back without straining your finances.
   
3. Compare Before You Borrow
   Check interest rates, fees, and repayment terms from different lenders.
   
4. Understand the APR
   The Annual Percentage Rate shows the true cost of the loan, always check it.
   
5. Demand a Pre-agreement Disclosure
   Ask for a document that explains all terms before you sign anything.
   
6. Watch Out for Hidden Charges
   All fees (processing, insurance, etc.) must be clearly stated upfront.
   
7. Don’t Sign What You Don’t Understand
   Get an explanation in your preferred language or ask a trusted person.
   
8. Know the Rules on Early Payment
   If you want to pay off early, the penalty must not exceed 0.25% of the balance.
   
9. Speak Up If You’re Facing Trouble
   If you’re unable to repay on time, contact your lender before the due date.
   
10. Keep a Copy of Your Loan Agreement
    Always collect and safely keep your signed loan documents.

So what?

Borrowing can be helpful, but only when done wisely. Take your time to understand the terms, plan your repayment, and never rush into a loan you don’t fully understand. A smart borrower stays in control.