Responsible borrowing and affordability

How do you know whether a loan actually fits?

Start with rent, food, transport, utilities, dependants and existing debt, and see whether the repayment still fits after all of them, with room for the costs that are easy to overlook. Then look at the amount received, the full cost and the due date together, because a lower interest rate does not always mean a lower total. If you cannot name the income that will cover the repayment, the loan does not fit yet.

When does a short-term loan make things worse?

When it covers the same shortfall every month. A short-term loan is for a temporary gap; used repeatedly it adds cost to a problem that needs a different solution. If there is no realistic source of repayment, discuss the bill with the provider or seek debt guidance before taking on more credit.

Why is eligibility not the same as affordability?

Being old enough, earning an income and having a bank account do not establish that a loan is affordable. Credit and affordability assessments exist precisely because those two questions are different. The requirements guide explains what each one covers.

What if you are already under debt review?

Lendumi does not lend to anyone under debt review. If several repayments have become unmanageable, consider a debt counsellor registered with the National Credit Regulator and check the registration before agreeing to anything. The repayment-support guide sets out what to prepare.

The design principles

Clear estimates without registration, no countdown pressure, no rewards for borrowing more, and repayment information that stays easy to find. Work through the before-you-borrow checklist and the cost guide before you commit to anything.

References: National Credit Act · NCR register of debt counsellors.