When you want to start a business or when you need some sources of capital to expand your business, a bank loan can be the last resort besides loans from parents, relatives, siblings or people we trust.
Before getting a bank loan, you also need to know the income to pay off the debt every month to the bank, but if you go to borrow without negotiation or agreement with the bank, you may lose some benefits.
Regarding this banking service, Lok Chumteav Chea Serey, Technical Director General of the National Bank of Cambodia, shared four important things that Cambodians need to do when borrowing money from a banking institution:
At this point of bargaining, Ms. Chea Serey said that whether you go to deposit or borrow money at a bank, you have to bargain on interest rates. Especially when going to borrow money, you need to be able to bargain to get a lower interest rate. You need to know that when going to borrow, you have to walk from one institution to another to compare interest rates and loan terms so that you can get a loan with a low interest rate and good terms.
2. Must be able to choose
This choice she wants to refer to the selection of financial institutions, and it is also important that Cambodians know when to borrow money from financial institutions. If you choose the right unlicensed institution, you will be able to get scammed like exorbitant interest rates. Also, a comparison between the terms and interest rates of each bank.
3. Use of loan
Using this loan is a double-edged sword: if you use the right direction, your life will be better, but if you use the wrong direction, it will make it harder for you. Here, she stressed that if the borrower goes to do something that is not beneficial or does not provide income, please reconsider. Borrowing a new phone, a new motorcycle, a new car should be avoided if possible because these items do not give you any income.
When you have a question about financial services, you must consult with the institution that you are using the service, that is, ask to consult with the institution to get a consistent banking service.
Bank loans are essential for starting a business or expanding a business, but in the case of borrowing from a bank with the intention of not increasing income, Business Cambodia is not encouraged at all.