Nine questions to ask before any loan

Work out your budget first, including a buffer for rate rises and quiet months. Try the cash-flow planner or work backwards from a repayment.

Borrowing more than you need costs more interest. List what the money is for and add a sensible margin, not a big one.

Ask for the comparison rate or APR and every fee in writing: establishment, monthly, early repayment and late payment fees. Got two quotes? Compare them side by side.

A fixed rate keeps repayments steady; a variable rate can go up or down. Check what happens if rates rise by a few percent.

A secured loan can put your house, land, machinery or vehicle at risk if you cannot repay. Know exactly what is offered as security.

Some loans charge to repay early or limit extra repayments. If you expect a good harvest or a big invoice, check first.

Read it before you sign, ask about anything unclear, and never sign under pressure or with blank spaces. Keep a copy.

Check that the lender or broker is licensed or registered with the financial regulator in your country. Be wary of anyone who guarantees approval or asks for money before a loan is approved.

Talk to your lender early if you might miss a repayment. Many lenders have hardship options, and free financial counselling services exist in many countries.