In the past, getting a loan was either a very formal affair with a large bank or an extremely casual transaction between two individuals within the community. Since then, easy loans in Sri Lanka have become one of the most lucrative industries with many major players of all shapes and sizes offering specialised money lending services. People from all walks of life heavily rely on credit facilities to not only manage their daily costs but also fund special expenses such as business costs, traveling costs or large electronics purchases. However, an increasingly large number of people are now requiring not just pre-planned loans or credit facilities, but are looking for ways to take out urgent and easy personal loans in Sri Lanka.
Reasons for needing an easy loan in Sri Lanka
The ongoing Covid-19 pandemic was highly unexpected and led to the downfall of many industries such as daily wage labour, nightlife, aviation and travel, tourism and hospitality, and so much more, crippling the economies of both developed and developing nations. Foreign trade also plummeted, creating currency exchange crises and reduced income of export-dependent markets like Sri Lanka. Due to this, many people were not only left without jobs or reduced incomes, the cost of living increased as well.
More and more people found themselves needing to take out easy loans in Sri Lanka to handle various expenses such as:
Regardless of what the reason may be, finding easy personal loans in Sri Lanka would not have been an easy task just ten years or so ago.
In the past, people only had very few options when they needed to borrow money: borrow from a loved one, borrow from a bank or borrow from a loan shark. However, due to unprecedented levels of demand for quick and easy loans from trustworthy lenders, numerous service providers have emerged on the scene.
Some of the available options for easy loan Sri Lanka are as follows:
While no one is formally taught about personal finance and money management during any stage of their formal education, they are forced to learn some basic principles from the moment they start earning their first rupee. One of these first lessons include having some sort of contingency plan in case you ever find yourself in a situation where you need money quickly. While savings and emergency funds are the ideal safety net, two other mechanisms you might have had the foresight to keep an open credit line such as a credit card or an overdraft ready and available should you need it. There are a few differences between credit cards and overdrafts; credit cards have an annual fee but overdrafts require you to have a long-standing current account and an overall positive relationship with the bank whereas credit cards have no such requirements. In an emergency, credit cards and overdrafts are your best choice for easy loans in Sri Lanka, due to the ease of using them: credit cards just require a swipe (keep in mind that you might get heavily charged if you wish to make a cash withdrawal) and you can simply write a cheque or withdraw cash at the ATM through your overdraft. To be more aware and careful about usage of credit cards,
If you haven’t prepared in any way for an adverse financial event (no savings, no emergency fund, no credit card or overdraft), the most reliable place you can easily ask for a quick loan from is one of your loved ones. Your closest friends and family members will always be willing to lend you money in any way they can; the best part is that they will likely refuse any offer of interest and flexible repayment plans can be arranged. A simple bank transfer from them would solve your financial woes, or you can accompany them to the ATM/bank if required. However, as everyone knows, the rule of thumb is not to involve your friends or family members in your money matters. If you are ever unable to pay back the loan on time, your relationship will be at jeopardy. In fact, the simple act of asking them for money itself is jeopardising the relationship as it puts your loved one in a difficult situation if they are unable to or unwilling to lend you money but being unable to turn you down. While you might be able to comfortably borrow money from your parents or your siblings, you will be risking any other relationship by borrowing money from them.
When unwilling to borrow money from known parties, your most safest and secure option is a bank or a stable finance company. These establishments have generally been around for decades (or even centuries in the case of larger banks) and have stringent processes and regulations that govern their activities. When borrowing money, these companies should be your go-to first choice. Not only do they provide attractive interest rates and semi-flexible repayment schemes, but taking and settling a loan with a bank improves your credit report and gives you a major advantage when taking out loans in future. The downsides of depending on a bank is that their processes tend to be very complicated, requiring so many documents and collateral, as well as taking a long time. So if you are looking for the answer to quick and easy loans in Sri Lanka, banks might not be your first choice; instead, if you are looking for long-term, high-value loans from a safe and secure place for a pre-planned expense, banks would be ideal for you.
Probably the easiest way of borrowing money nowadays is through online money lenders. With the adoption of the latest FinTech, smaller private companies are currently giving larger banks a run for their money by offering easy online loans in Sri Lanka. Using a combination of digital platforms and unsecured loans, customers can not only apply for their loan in less than five easy steps but they can also receive the money in their hand within thirty minutes. The fact that these service providers use unsecured loans makes it easier and quicker as not much documentation is required, no extreme background checks are done and the likelihood of getting your loan approved is very high. The trade-off for such benefits is that precisely because these online money lenders deal almost exclusively with unsecured loans, they undertake a lot of risk when granting loans to customers without collateral, which in turn translates to high interest rates and other applicable charges. The high levels of demand have seen more and more service providers popping up, offering easy online loans in Sri Lanka. An example of this is OnCredit.lk who innovatively gives in financial support to people in the country.
When you have decided to borrow money, there are many things you should look into before you take out any easy cash loan in Sri Lanka. Too many people have fallen into the trap of taking out fast and easy loans only to find themselves in irreversible financial ruin when they are unable to repay the loan in full or on time. While the ever-increasing ease of credit facilities make it very tempting to get a loan, there are many things you should consider prior to taking on such a financial commitment.
This is the most important aspect of taking out a loan. Your service provider determines the entire nature of your loan experience, from application to repayment and in case you are unable to pay it back. There are so many unscrupulous money lenders out there (known as loan sharks) who should be avoided at all costs. When it comes to service providers of easy online loans in Sri Lanka, make sure your selected partner is licensed and registered as a company - this ensures that they adhere to all financial regulations set by the government.
The importance of carefully reading the terms and conditions of your loan prior to signing (or preferably even before selecting your service provider) cannot be stressed enough. Most people who end up drowning in debt due to endless fees do so because they signed up for the loan without reading the terms and conditions. All applicable interest, service charges, late payment fees, repayment dates etc will be outlined in these clauses. Keep in mind that if a service provider seems to be unwilling to reveal these, they probably have hidden charges and you would be better off steering clear of such parties.
Never take out a loan without having any idea how you would repay it in future. While you might reap short term benefits once the loan is approved and you get the cash to your hand, you will end up suffering in the long run when debt collectors are hounding you and your credit report takes a nosedive. Bad debt is not easily recovered from and has the potential to affect many of your future activities, such as certain job positions, migration, future loans etc.
One of the most rookie mistakes you can make is overly relying on loans. Just because you managed to take out an easy loan online in Sri Lanka and paid it back without any issues once, doesn’t mean you should do it regularly. Too many people fall into this never-ending debt cycle where they manage to pay off their loan fully and on time but they take another loan immediately after to help them manage the rest of the month’s expenses as they used up their entire salary to settle the first loan. Breaking out of this cycle is extremely difficult. You should always think twice not only when taking out your first loan but on your second and third loans as well. It's always better to read Financial Habits to Avoid in order to keep your finances in check.
Applying for and receiving easy personal loans in Sri Lanka has become much more convenient and cost-effective for consumers due to technological advancements. So next time you find yourself in a financial dilemma, don’t worry too much - you will have many options to select from. Do your research and select the best match for you depending on your requirement and ability to repay it.