Borrow with the full cost visible
Test affordability, repayment obligations and protections before borrowing.
Build the foundations
- Compare cash received with total repayment
- Test a repayment against cash flow
- Explain collateral and guarantor exposure
- Identify a safe response to repayment difficulty
- 1Understanding loan interestInterest is the price of using someone else's money. Here is how it is calculated, why two loans quoting "3% per month" can cost very different amounts, and what to ask before you sign.
- 2Can you afford this loan?Being approved for a loan is not the same as being able to afford it. A simple calculation you can do before you borrow.
- 3Understanding collateralCollateral is something you agree the lender can take if you do not repay. What can be pledged, what it is really worth, and what to check before you sign.
- 4Before you guarantee someone's loanGuaranteeing a loan is not a character reference. It is a promise to pay the debt yourself. Read this before you agree.
- 5What happens when a loan falls into arrearsMissing a repayment is a problem. Hiding from it is a much bigger one. What actually happens, and what to do in the first week.
Check your borrowing understanding
Choose an answer for each question. You will see an explanation straight away.
Apply what you learned
Borrowing Cost Check
Compare the money that reaches you with all known repayments and charges.
Scheduled repayments UGX 0
Total cash repaid UGX 0
Difference from cash received UGX 0
This is a cash comparison, not an annual percentage rate. Confirm timing, penalties and any deductions with the lender's written schedule.
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