Borrow smart
What is important to know before taking out a loan?
A loan can help you achieve important life goals, but before making a decision, it is important to understand the costs and commitments involved.
What to look out for?
Before taking out a loan, pay attention to:
- the interest rate and the total cost of the loan
- the amount of the monthly instalment or annuity
- the loan repayment period
- your creditworthiness
- the conditions for early loan repayment
- any fees associated with the loan
Loan Application Checklist
Before making your decision, check that:
- I understand the total amount I will repay, not just the monthly instalment.
- I know how much of the total cost is made up of interest.
- I am aware of the repayment period and its impact on my household budget.
- I can continue making repayments even in the event of unexpected expenses or a reduction in income.
- I understand the difference between short-term and long-term borrowing.
- I know what happens if I am unable to meet my repayment obligations on time.
- I have considered how the loan will affect my other financial goals.
Additional Protection
When taking out a loan, various forms of insurance, such as life insurance or loan repayment insurance, are often offered to provide additional financial security.
Important!
A loan is a long-term financial commitment. Before making a decision, it is important to understand the total cost of the loan and realistically assess your ability to meet the repayment obligations.
Want to Learn More?
As part of its financial literacy programme, the Bank regularly organises workshops on loans, responsible borrowing, and personal financial management.
For more information, visit the link or contact us at finpis@pbz.hr.
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