Introduction
When we are looking to apply for a personal loan rate interest is the central point of interest. Personal loan are the best way to have cash on urgent basis but at the same time lenders use different tricks in personal loans because they know mostly these loans are obtained for urgent needs and often people don’t look at the terms and conditions in detail. You need to educate yourself well before finalizing the decision about getting the personal loan.
Step 1
Processing Fee
The first trick which banks use in personal loans is the heavy amount of processing fee. This fee will be charged on you at the time of application of loan.
Pre Mature Penalty
Regardless of loan rate interest, personal loans are expensive due to various other reasons such as prematurity penalty. As your bank how much they charge if you want to pay before the time.
Step 2
Tenure of the Loan
Besides just looking at loan rate interest you also have to look at the tenure. Banks charge less on long term loans so it looks to you attractive in first sight but you need to be sure and for this you have to read all their terms and conditions.
Step 3
Requirements for Personal Loan
Loan rate interest is a basic thing in personal loan but you must know what other requirements of the bank are? You need to know about the documents that bank needs to process your loan. Mostly there are fewer requirements in personal loan applications such as identity proof, bank statements, residential proof and income certificate. In some cases banks wants a guarantor along with same documents.
Secured Loans
If you are looking to get a good and cheap loan rate interest than you must have to choose secured personal loan. In secured loans you have to keep something with banks such as property documents as collateral or security. Secured loans are provided by cheap loan rate interest because there is less risk of default in these types of loans.
Features
Explore Different Options
In order to get cheap loan rate interest you need to create competition between different banks. You must know what different banks are offering and use that information in the negotiation process. This will be really helpful because when you successfully create a competition among the banks they will provide you as much facilities as they can.
Comments
Avoid Hiding Facts
In order to get the lower loan rate interest for your personal loans you must need to provide all required documents to the bank. Act as an open book for banks; allow them whatever they want to check. You will start feeling that bank people start liking your behavior and eventually you will be able to get the best loan rate interest. Above mentioned tips are very helpful in getting your personal loan on lowest possible interest rate. Besides that these tips are helpful in making the loan process smoother for both lender as well as borrower. These are small steps and everyone can do these small things without much hectic so if you are also wanting help in personal loan process act on these small tips.
