We are your trusted friend who goes beyond the provision of financial solutions. At the heart of our mission is to ensure your overall financial wellbeing.
Our accounts are designed to give you a helping hand to ensure you plan smarter and live better and provide you with the best financial solutions.
We help you plan for your short and medium-term commitments as well as emergencies. Saving money helps you achieve your goal.
Invest and co-own a growing financial institution. Secure your future through regular savings and investments.
Everything you need to know about Amica
“Opportunity favours the bold” this is a lesson that I learned early on, and have used to guide the Virgin story.
If somebody offers you an amazing opportunity but you are not sure you can do it, say yes “then learn how to do it later!” Richard Branson
Life presents us with multiple investment opportunities which are time-bound. In most cases, we are not able to seize the opportunities either out of fear of failure, risk or lack of funds to start off.
The tips below will help you weigh on when to seek credit and when not to.
This means that if you take a loan to put up a building, the rate of return should be higher than the interest that you are paying on that loan.
When you take a loan to purchase a piece of land, it is an investment that may not give you instant income but because land appreciates with time, the future benefits are worth the investments and it is, therefore, a good loan.
You can also take a loan to build your own home, start a business which is still a kind of investment as long as you are careful about the kind of returns you will get from the investments.
Long term loans end up tying a person to that debt for a long time limiting the ability to exploit other opportunities.
The longer the duration a loan takes, the higher the cost and the more it ties you from undertaking other major investment projects. A mortgage borders between a good and bad loan depending on one’s ability to pay it off within a short time thereby getting room to focus on other investment projects.; unfortunately the majority of people pay mortgages throughout their working life which ends up being extremely expensive and limits the ability to take up other investment opportunities.
Before taking a loan be clear on why you need the loan and ensure the whole amount goes to the intended purpose.
Avoid diverting money to other projects not planned for. Have a clear plan on how you intend to service the loan on a regular basis.
When you walk your Bank or Sacco for credit, you sure have a financial/ investment need that you want to be met at that time. You might have noticed a prime plot on sale and you want to seize the opportunity; therefore money released a month later might make you lose the opportunity.
One of the major things to consider before taking up a loan is the interest rate. The benefits of an expensive loan may end up being outweighed by the cost of the debt. Look at the interest rates, the pricing and the duration. This will help you make a sound decision on whether to take a loan or not.
This does not necessarily mean spending luxuriously or aimlessly. They are bad loans since they do not have any returns or benefits hence the word consumption. A loan that you take to pay school fees, buy a car for personal use among others fall under this category simply because these are things that you need to plan for since they are not instant emergencies. Instead of taking a loan to pay school fees, plan how to pay school fees.
A loan for a public service vehicle is an investment. It brings in returns unlike the loan for a personal use car.
Taking a loan to pay a hospital bill also falls under a bad loan. There are health covers that help to save for the medical bills in advance. This helps in avoiding to incur a loan that you could have avoided by simply saving for it. It’s better to pay a premium for a medical cover than paying off a loan over the same.
” Impulse loans” are Bad loans
These are loans taken because of their availability other than a genuine need for the money. These include credit cards, mobile loans, borrowing from shylocks or hire purchase. Unless it’s extremely an emergency, it is good to avoid these loans and in unavoidable circumstances, repay them as soon as possible. If you do your calculations on the interest rates, you find that the loans end up being extremely expensive.
Thank you for your email.
We will get back to you shortly.
Branches
Telephone: +254 729 333 444/ 0111 026 100
SMS Code: 20298
Email: hello@amicacs.co.ke
© 2024 Amica Savings & Credit Limited. All Rights Reserved.