Here we will discuss some key things you should keep in mind before availing loans from banks.
Loans is the perfect option to meet your immediate financial expenses.
Thereare different types of loans that are provided by the banks such as personal loans, educational loans,home loan ,car loan etc.
So,here is the list of some points you should keep the mind while availing loans from the banks.
Keeping Interest rate in minds
Firstly,you should understand the interest rate applicable on the loan that you are availing.
Generally,interest rates of personal loans are very high and their repayment tenures are short.
Youhave to pay the amount in equated monthly installments(EMI).
Take only that much you need
It is essential to estimate that how much amount you need for your expenses.
Rakingextra money can create some troubles for you.
Consider other options and choose wisely.
There are a lot of recognised public and private sector banks in India which provide different kinds of loans with different interest rates.
So,choose wisely before visiting a bank.
Choose an option to negotiate interest rate.
If you have a good credit history than you have no shortage of banks who are ready to give you.
since banks are in competition with each other,you can negotiate the interest rate offered to you.
Asmall change in Interest rate can lower the burden of amount you pay.
Read all loan related documents carefully
Read the documents carefully so that you will not be surprised later.
Gothrough the agreement and recheck the fees, charges and penalty.
Always take care about the consequences you have to pay in case of failure to pay the loans.
Failing to fulfill the EMI on time name you an unreliable customer and also decreases your credit score.
Ultimately,bank has to impose penalty on you which increases your financial burden.
Check your credit score before applying.
Always check your credit score and lender’s eligibility criteria before applying ,this will take less time to approve your loan .
These are the few tips that will help you in availing loans with ease.Hope,it helps.
Written By Deepak Kumar (Senior Analyst)
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