1. Decide why you need the loan
A personal loan is usually unsecured, which means the bank relies only on your income and credit record. Use it for large, one-off expenses you can repay over 1–5 years — not for day-to-day spending.
2. Compare the total cost, not just the rate
Look at processing fees, insurance, early-settlement penalties and any annual administration fees. A low headline rate with a high processing fee can be more expensive than a slightly higher rate with no fees.
3. Check if the rate is flat or reducing
A reducing-balance loan charges interest only on what you still owe, so the total interest is lower than a flat-rate loan with the same number. Always ask the lender which basis is used.
4. Understand eligibility and documents
Most Mauritian lenders ask for your latest salary slip, 3–6 months bank statements, a current utility bill and a copy of your ID. Self-employed applicants may need audited accounts and tax returns.
5. Watch for red flags
Avoid lenders that ask for upfront payment before approval, refuse to give a written quotation, or pressure you to sign the same day. Always read the credit agreement and ask for the APR.
Last verified:
Category: loans