MBABANE – The Central Bank of Eswatini is urging the public to always ask questions before signing any loan agreements.
The Bank issued a reminder for emaSwati to understand every detail of their loan contracts to avoid future complications. This comes as more people in the country continue to take out loans for various needs, from personal expenses to business financing.
Borrowers are advised to carefully examine key sections of loan documents, including all applicable fees such as origination charges, late payment fees, and penalties for early settlement. Attention should also be paid to the repayment schedule, with borrowers expected to know how often payments are due and the total repayment period.
The Bank also warned of the consequences of defaulting on loan payments, urging consumers to understand what actions lenders may take if payments are missed. For those taking secured loans, the Central Bank said it was crucial to know which asset was being pledged as collateral.
“Never sign a contract you do not fully understand,” the Bank advised, adding that credible lenders should always explain terms in clear and simple language.
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