Introduction
Acquiring lowest loan is always every borrowers dream because of the low interest rates they charge. The only problem that this may present is convincing the lender that the borrower is dedicated and would not default when it comes to loan repayment. If the borrower manages to convince the lender of their commitment, they are always very likely to be offered lowest rates. It usually involve several steps for the borrower to convince the lender that they will repay the loan within the agreed time and regularly.
Step 1
Some of the steps that the borrower may take include providing collateral in form of assets that the lender may sell to recover their loans should the borrower default. This is likely to influence the lenders the lenders decision to give the lowest loan to the borrower. The amount of the lowest loan awarded usually depends on the value of the collateral provided. This simply means that those borrowers with high value assets are likely to be given large amounts of loans.
Step 2
Another way of qualifying for lowest loan is by providing guarantors who will undertake to repay the loan in case the borrower defaults for whatever reason. This lowers the risks the borrower is associated with and the lender may just approve their lowest loan.
Step 3
Most lenders usually look at the borrower’s credit scores before approving their loan requests. Those with excellent credit scores usually stand a better chance of being awarded lowest loan by the lender. It is therefore advisable that individuals work on their credit scores before applying for any loans to enable them be offered favorable terms for their loans.
Step 4
Since there are several lenders offering loans at different rates, it is always very important that the borrower compare the rates charged by different lenders so as to find the lowest loan. This can help them save a lot of money on the interest’s payable for the loans. It may even be necessary to hire the services of loan brokers to help an individual find lowest loan since they are always in contact with several lenders and may know their lending rates and terms.
Step 5
The duration of loan repayment can also dictate weather the lender will offer the borrower lowest loan or not. Repaying these loans within the shortest time possible is always desired by many lenders since they are always sure that they will regain their money faster thus reducing the risks of loosing these monies should the borrower pass away. This will lead to the lender approving their lowest loan request.
Tips
Having good working relationship with the bank can also be very important in trying to secure lowest loan. This is because the bank may be aware of the business dealings and may approve their lowest loan fast. Some banks would also want to retain their customers for long by offering them special services like the lowest loan. It would therefore be important to apply for the lowest loan in the bank where the borrower is a customer.
Sources and Citations
none
