Be aware when taking out personal unsecured loans - Consumer Council of Fiji

Calls have been made by the Consumer Council of Fiji to consumers who intend to take personal unsecured loans from banks to be aware of the different fees and charges that can result in expensive loans.

Officer‑in‑Charge Bindula Devi says consumers must compare fees, charges, interest rates and other costs provided by the various banks.

Devi says interest rates in the different banks varies from approximately 14% to 18%.

She says consumers who unknowingly sign up for variable interest rates will not have any knowledge on the interest amount they will end up paying during the term of the loan.

She says the term of the unsecured loans are normally short and consumers may have difficulty paying up when interest rates are variable.

Devi says personal unsecured loans should be acquired for necessary needs only and they urge consumers to be more responsible when borrowing from the banks to be aware that their financial status may change anytime due to loss of job, sickness, personal disasters and rise in cost of living.