Introduction
In this day and age, money is a very essential aspect of the every day life, the amount of money a person has will dictate various things including the diet of a person, the neighborhood one lives in, the social class one will associate with, among others. The problem is that money is a scarce commodity and there's an upper limit to the things a person can achieve.
If someone wants to take on a project such as building a house, buying a piece of land or even a car there has to be a large financial outlay for this to be achieved and that is why people opt to take up loan. A loan is a product offered by banks and other financial institutions where they will give a sum of money which will be returned to them at an interest. The loan amount a person is given will be dictated by various factors such as the security you have to offer, the credit rating and so much more.
Step 1
Take time to research on the various banks and other financial institutions that will give you the loans amount of your choosing. In this research, you should be cautious to look out for things such as the interest rate charged and also the loan repayment period. Choose a list of three or four institutions that have terms that are favorable to you.
Step 2
Seek advice from your banker or accountant on the loans product that you may take and comfortably repay with your current level of income. This will be advantageous to you because you will be careful to avoid loan terms that may be unfavorable to you and lead to unfortunate things happening to you such as your security asset being reclaimed by the loan lending institution or even your credit rating dropping or even both.
Step 3
It would be in your best interest if you negotiated for a lower interest rate to apply on the loans product which you will choose. This will be better for you because you will be making a lower interest payment every month and so it will be less taxing to your budget as compared to a higher interest rate loan.
Step 4
If you can, take time to visit a couple of loan lending institutions in your area. This will give you a chance to engage and interview the loan officers of these institutions and have a better understanding of the loan products that are offered by these institutions. The benefit of doing this is that you will get to learn of information that is not usually advertised about the loans and so make a more informed decision while selecting the loan product to sign up to.
Step 5
Before you eventually enrol yourself to the loan product that you found most suitable, make sure that you have read and understood the terms and conditions of the loans product. This will help you to be well aware of your rights and duties as a debtor of this institution and also give you an idea of the penalties you will face in case you break any of these terms.
Tips and Comments
The following tips will help you in selecting the loans product of your choice:
- Negotiate for a discounted interest rate.
- Seek advice of a financial consultant.
- Read and understand the terms and conditions of the loans.
- Ensure that you make all your monthly payments in good time.
