Refinancing your car loan means getting a new loan with a different lender to replace the existing auto loan. Your new lender will clear off the remaining loan after agreeing how much you will be paying, hopefully with lower interests. You can also choose to extend the term of the loan if you were straining with the installments.

Auto loan refinance is right for you if your credit score has greatly improved and you can qualify for lower rates or smaller monthly payments.

How to Refinance your Auto Loan

Gather your documents

You will need at least a recent payment of your Auto Loan to determine your remaining balance and current monthly payments. Note down the interest you are currently paying and the amount of time left until you can clear the loan. Your driver’s license, car identification and proof of payment may also be required.

You should also check for penalty that could have accrued on your auto loan contract.

Check your Credit Report

Find out where your credit score stands. Chances are it is good if you have been consistent in your auto loan repayment and other financial commitments in your life. There are online sites that you can check your credit score ratings.  Your credit score determines the kind of interest you will get in your new loan. It might not make sense to refinance with bad credit score.

Compare loan offers

Refinancing your car loan will save your money if you spend time shopping for a better deal or a reliable lender that you can refinance with. Refinancing your loan doesn’t take long and a lender can decide in less than hour.

Since we all have different credit rating the score you might get from your own research might not tell you exactly how much interest rates you will be charged. The alternative is to apply for the loan to find out how the interest that your good credit will earn you.

Work the numbers

Start by entering your current car loan information i.e. the original loan amount, the interest rate, the remaining balance and the months left till you pay off the loan. Then enter the approximate interest of the new loan, the months it will last (Loan Term). You will be in a position to calculate how much you will be saving. However, if the remaining amount is greater than your car’s worth, refinancing will be impossible.

After making the appropriate moves and calculations, you can then decide if refinancing is the right choice at the moment. If you are close to the end of your Auto loan, refinancing might not make sense or if there isn’t much difference.

You can decide to refinance if you want to pay off the loan quickly or lengthen the time you will take to repay the Auto loan.

Apply for Refinancing

After doing the math and choosing to refinance, the next step is to complete the process with the lender of your choice. You can then agree with the lender on the new loan details, including the interest rates and the payment length. The refinancing company will then pay off your remaining balance of the old loan.

The process can be completed within a few hours. Refinancing is not expensive since most car loans lacks a prepayment penalty. Also, there is no application fees for refinancing.

When refinancing makes sense

 A dealer marked up the interest rates- Your car dealer might have charged you higher interest rates at the point of purchase if you had not shopped around for better deals, refinancing can help save lots of money.

Interest rates have dropped– Interest rates going down is another reason to consider refinancing.  Increased competition among lenders, change in the economic status and policy changes are some contributing factors to low interest rates.

Late or unable to keep up with payments– Financial challenges pop up every once in a while and you might find yourself straining to make monthly payments. Refinancing your car loan might salvage the situation and give you enough time to pay off the loan.

Refinancing might mean paying more because of increased duration of the loan.

We all love the idea of being self-employed and at some point we have had a side hustle to supplement our employment. While most of us toy with the idea of starting a business, entrepreneurship is a bumpy ride especially for the first timers. Before you quit your job to become an entrepreneur, it is important for you to examine if it is the right fit for you.

Finding the right business for you will determine your resilience when you experience any challenges. Put into considerations your passion, skill sets and your ability to solve problems for your target audience

How to determine whether or not entrepreneurship is for you.

To determine whether you want to venture into entrepreneurship, start by asking yourself;

• Are you risk tolerant? A big chunk of entrepreneurship involves taking risks every day to support and expand your business.
• Can you handle different responsibilities each day? Starting your own business means you have to think about all angles and cover them before the business matures enough to hire professionals.
• What’s your income preference, monthly paycheck or potentially unlimited earnings? Depending on the kind of business you want to start, chances are what you earn depends on the risks and the effort you put.
• Are you truly passionate about the business idea you have? While you may think passion is overstated, it usually comes in handy in terms of your commitment and the energy you put on it.
• How good are you in decision making? It goes without saying that you will be in charge of all the decisions need to be made pertaining your business and this can make or break your start up.
• What are the thoughts of other stakeholders in your life? Not everyone has your best intentions at heart, but getting the support of your friends and family is essential since they may be able to evaluate your idea in ways you hadn’t figure out.

Are you confident that you can take on the risks, responsibilities and rewards?

The next step is discovering your passion and learning how to turn it into profits. If your business is to stand the test of time, your motives for starting it should not be purely money. Turning a profit will eventually come into play and sure, the chance to earn more than your job feels like reason enough to start your own business but your reasons for staying in business will be determined by your passion.

Position yourself to solve the problems of your audience that you truly care about. Aligning your goals with those of the people you will be helping will give you more satisfaction when you are able to handle any challenges coming your way. The temptation to give in when pursuing a business opportunity that you are not into is high especially in the face of the first failure.

Set yourself up for long-term success in entrepreneurship

Discovering your strongest passions will help you determine which one has the highest potential that you can monetize for a long last successful business. Answering the following questions is a great starting point.

• What is the best part of your day?
• What is your favorite hobby?
• What do you love and enjoy doing?
• What topics are you an expert on?
• Which topics do you enjoy talking about with your family and friends?
• What issues do you feel strongly about?
• What skills can you boast of?
• What topics are you an expert on?

How you spend time after your 8-5 job is a great starting point to finding out what genuinely interests you. Another way to discover your passion is by doing a SWOT analysis on yourself to find out area you are really good at and the skills you will contribute as an entrepreneur. You will then be in a position to know if the business idea have in mind match your current skills.

For instance, what do your friends consult you mostly on? Then come up with a business model that clearly outlines what problem your skills will solve.

Which type of Business is the right for you?

You are now in a better place to decide which business idea suits you best. There are different ways you can monetize your passions and strong skills, for example if you are good in web design, writing or graphic design, you can turn it into a freelance hustle. You can also choose to manufacture a product or supply one, sell digital products, and start a blog or podcast

Being an entrepreneur means taking a lot of action daily, connecting with acquaintances and a lot of networking. Determine what problem you will solve and how and learn how to best reach more people with your solution.

When it comes to money, most people make money mistakes that lead them into a never-ending cycle of financial difficulties. Being money-wise and making better money moves will guarantee financial freedom and the pressures of getting into debt. What not to do with your money is more important than what you do with it.

Are you facing financial difficulties? Here are the 10 major money don’ts to avoid economic hardships.

1. Rushing to buy a house

There is a lot of pressure when it comes to building a home, buying a house or renting. Hit a certain age and the questions you get are have you bought land, built a house. Home ownership is a big part of the Kenyan dream and you are not considered as settled if you are still renting. While sometimes it makes sense to own a house, buying before you are financially ready is a disaster.  Investing the extra money in projects that will grow your savings will ensure that when you do buy a home, it will be your dream home since you won’t be dealing with debts.

2. Buying a new car or leasing one

Being infatuated with new cars is not healthy for your financial situation. Cars are sold every other day to buyers who cannot afford to pay for them in cash. Most Kenyans are caught in the loop of taking loans to buy a car which is a depreciating asset.  While this may seem light on the surface, what it means is that you end up paying more money for the car than its original value unlike those people who can afford to buy in cash.

Buying a used car have it benefits but it may mean more trips to the garage. And while at it, leasing a car is a big no, leasing means putting money into years’ worth of car payments yet have nothing to show for when the term is over.

If it takes more than three years to pay off the car value then it means it’s out of your range.

3. Excessive spending, Want vs. Need.

We only live once, right? It’s in our human nature to want to impress others, we end buying things we do not need or cannot afford to show people that we are well off. Going to fancy restaurants to buy overpriced coffee or splurging on expensive alcohol every weekend is a want not a need. Fortunes are lost one shilling at a time, every purchase that you makes add up to drain your savings.

If you are going through financial difficulties avoid frivolous spending, after all spending money that you may not have to impress people means shallow relationships that will leave you emotionally and financially stressed. Spend wisely and enjoy your financial freedom.

The next time you are buying something, weigh on whether it is something you need such as medication and food. If it is something you want like some Nyama Choma and ordering another round for the boys then walk away, you will be surprised at how much you are able to save months down the line.

4. The cycle that is salary advance

Most households are living paycheck to paycheck meaning that when a financial emergency crops up it turns into debt since there is nothing to fall back on. The bigger part of employed people will not be able to stay without a job or survive a missed paycheck, this is one of the worst situations you can find yourself in especially in the Kenyan economy right now where most businesses are closing down.

It is money wise to keep three months’ worth of expenses in an account you can access quickly if need be. In case of loss of job, this will give you time to get your situation in order without losing your house or being kicked out.

5. Don’t co-sign a loan

We have found ourselves in situations where we might need a loan. When your family or friends asks you to co-sign a loan the first thing we want to do is say yes and help them out. For the sake of your financial health and credit score ratings, saying No is the right response since it essentially means saying yes to your financial freedom.

Situations and circumstances change, being legally responsible for someone’s debt is not a situation you want to find yourself. Co-signing a loan has been the source of many family disputes and ends of friendships.

6. Don’t live on borrowed money

Credit cards have become the norm even when it comes to buying essentials like groceries and gas, things that will be long gone before the bills are even paid in full. Using Credit card means incurring interest rate that ends up increasing the buying price of the items purchased. You are likely to spend more than you earn with Constant use of your Credit card or paying for the purchases even four times over.

Debt is the bondage that is keeping you from attaining financial freedom. Not all debts are bad like mortgages and student loans because of their low interest rates. Part of not living on borrowed money is not letting your debts linger, the longer you postpone paying your credit balances the more money you are bound to lose

7. Invest and save

Your money should be working for you or you will always be working for money. Besides having a savings accounts, contributing monthly to your retirement account will give you a financial cushion. Do not invest in something because it is trendy or cool, investing for the wrong reasons can lead to a quick downfall.

Consult a financial advisor that you can help you make better investment decisions. Pick a financial adviser you can trust and do not put blind faith in them, everyone has their own best interest a heart.

Don’t say it is impossible to save either, most people complain of not having extra money left over to save monthly. To attain financial success, you need to evaluate your spending habits and ensure that you squeeze some money into your savings every month.

Bottom line

Steering yourself from the possibility of financial ruin is not hard. Start by monitoring your spending habits, ask yourself if you really need that fancy gym membership, TV cable or music services. Be keen before taking a loan to buy things that cannot repay the debt. Finally, create a financial plan or budget that you can stick with every month will guarantee a future without the constant worry and burdens of debts

When starting a business in Kenya, without a doubt money is the most limiting factor. Obtaining finance is important for starting or growing your business’s major day to day expenses like Inventory and payroll. Getting capital or finance is one of the biggest hurdles facing Small Business Enterprises mostly due to banks’ lending structures and standards.

Whilst it is difficult, it is not impossible with the right preparation. Here is how to get a SME Loan and what you can do to increase your chances of approval.

1. Indicate why you need the Loan

The first question to get from lenders is why you need the money. Asking yourself how this loan will support your business and having ready detailed answer is one easy of way of getting your SME Loan approved.

Depending on your needs, your answer is likely to fall under the starting your business, managing everyday expenses or growing your business. Pinpoint in which ways the loan will help meet your business’s needs.

2. Decide on the type of business loan you need

Doing research will help you find out which is the best type of loan for you. This is majorly determined by your reasons for requesting an SME Loan. For startups, it is almost impossible to get a loan in your company’s first year of operation from banks since they require proof of how the business will support the repayment of the SME Loan.

While banks may immediately disqualify you from financing, with the rise of mobile lending apps in Kenya, getting a loan is not as difficult as it was before. There are websites like Go Fund me Kenya that support crowd funding (the digital version of Harambee), you can also get a Logbook Loan from companies like Milhan Access Capital, or get financing from Non-profit Lenders. However companies with more than one year of revenue have more financing available to them.

3. Find the best type of SME lender for you

Comparing the different lenders and their loan terms and conditions will help on choosing where and who to borrow from.  While the increasing number of lenders means more opportunities for SME to get financing in Kenya, it also means more places to choose from. Before setting on a lender, it is important to first compare their terms.

You should approach SME Financing in Kenya more like car shopping. Calculate the estimated payments to determine which business loan will work for you. Once you choose on the best lender for you, compare the total borrowing cost and pick the one with the lowest Annual Percentage Rate (APR). To be able to repay your loan comfortable each month, your total income should be at least 1.25 times your total expenses. There are loan calculators like Aren

4. Find out whether you meet the SME Loan qualifications

Before sending in your application, it is crucial to check if you have what is required for the type of loan you have decided on and the lender. This is where your credit score and annual revenue plays an important role. Your credit rating will determine which loan you will qualify for. You can check your CRB Listing at https://www.metropol.co.ke/ .

Lenders look at three things, How long have your business been in operation, How much money do you make and will you be able to make the payments. To qualify for most SME Loans from banks, you must have been in business for a minimum of two years while with online small business loans it is at least one year in operation.

5. Gather your required documents and Apply

After comparing your available options and weighing in on each’s benefits and limitations depending on your financial needs, it is now time to gather your documents that lenders will ask for ahead of time. You can apply for multiple SME Loans from different lenders to increase your chances of getting funding.

The basic requirements for SME Loans in Kenya include but are not limited to;

• Business and personal tax returns
• Business and personal bank statements
• Business financial statements
• Business legal documents (e.g., articles of incorporation, commercial lease, franchise agreement)Top of Form
• Bottom of Form

It necessary to look at your company’s financials especially the cash flow to determine how much you will be able to afford in terms of loan repayments every month.

Tips for getting your SME Loan approved

Use banks only when you are able to provide collateral, you have good credit and you don’t need cash urgently.

Use Microfinance and Saccos when you cannot get a traditional loan from a bank for different reasons or your business is still too small. However their interest rates are a bit her than banks.

Use online lenders when you lack collateral, you lack time in business and you need funding quickly. While online lenders compete with banks in terms of interest rates, the approval rates higher and faster unlike banks.

Emergency loans have increasingly become popular over the recent years, from mobile app loans to logbook loans. Lenders realized that financial emergencies happen to the most of us and one thing that has remained constant is people’s need for cash. While getting a loan from a bank involves long procedures that take time, once approved, Logbook loans are processed in less than 12hours.

A Logbook loan is a great way to secure cash quickly or if you have been refused credit before and you are looking for a quick decision on a loan. As the name suggests, logbook loans are loans secured against the value of your vehicle (either a personal car or a company vehicle), most logbook loans lenders offer loans from 50% the value of your vehicle which you can repay within 20 months.

Who can get a logbook loan?

Anyone who owns a private, commercial or passenger service vehicle qualifies for a logbook loan. Loans can be secured against more than one motor vehicle at the same time. All Log Book Loans are subjected to a loan appraisal process. Once a loan has been approved the loan will be disbursed in less than 12 hours.

The minimum amount to borrow mostly is Ksh 50000 to a maximum of Ksh 2000000, however, the amount applied for and approved will depend on the general condition of the car, the age of the car, the mileage on the vehicle and the amount of money you make. This will also determine the amount of money you will be required to pay monthly.

How to get a logbook loan

There are many companies like Milhan Access Capital offering logbook loans in Kenya. However, it is important to do your research well on which company you can borrow from and their interest rates. Before handing over your logbook, it is essential that you learn how logbook loans work. If you are not able to keep up with repayments your vehicle can be repossessed to pay back what you owe.

One of the requirements before being granted this kind of loan is that you will have to transfer the ownership of the vehicle to the lender and once you have cleared your debt, it will be then transferred back to you. Hence, one needs to read carefully and understand the terms of logbook loans.

What you need to get a logbook loan

As part of the loan application and approval process, you will be required to have your logbook or registration documents of the car to prove ownership of the vehicle. The lender will then do a check on your vehicle to confirm that the value quoted is the correct amount and the car is free of any other financial obligations.

Some personal information will also be needed as part of the process, these might include financial details i.e. income and regular expenditure. Other logbook lenders require physical address. This process can take as less as an hour and money transferred to you within 12hours.

Why logbook loans

Approved fast and timely – Logbook loans are like emergency loan, they are approved fast to make sure financial needs are met quickly. With most lenders it takes less than 12hours given that you meet all the requirements. At Milhan Capital the money is transferred to your account without delays once approved.

Easily accessible– With logbook loans becoming popular by the day, more and more lenders are coming up to meet the demand. Getting a logbook loan is now easy provided you are eligible. You can even submit your application online.

Use as you want– When it comes to getting a logbook loan most lenders do not need to know how you intend to use the money as long as your car details check out. You can use the money on personal matters like paying for a vacation, invest, pay bills etc.

Flexible amount– Since logbook loans are secured against a car, the amount of money you can borrow is flexible, one can borrow up to 5million depending on the value of the car.

No Credit Check– One of the advantages of logbook loans in Kenya is that you can access them even when you have been denied credit elsewhere. The no credit check policy guarantees most people get a loan since the car is used as collateral.

Logbook loans are not just for emergency purposes although they are processes in the shortest time possible. This type of loan can be used for any purpose including starting a business, expanding or restocking, supplement the working capital cash flows deficits, pay workers, pay medical bills, complete a payment or maybe just going for a vacation.

Milhan Capital logbook loans

At Milhan, we offer fast logbook loans for all your financial needs. Once your application has been approved, you can expect money in your account in less than 12 hours.

Our logbook loans comes in handy for businesses and individuals. To know more about Milhan Capital Logbook loans and why they are the right choice for you call 0790309958.