Compare And Contrast For A Secure Future
Shopping is one of those activities where you like to get inputs from others. This gives us an idea of where to get the best value for money deal. Similarly, while thinking about securing a loan to pa...
Shopping is one of those activities where you like to get inputs from others. This gives us an idea of where to get the best value for money deal. Similarly, while thinking about securing a loan to pay off a debt or to tide over an unexpected expense, we should do a comparative study before choosing the ideal loan option.
We must always educate ourselves on the various loans that are available, the rates of interest that are applicable, the time that is available to repay these loans, and which bank offers the best deals. This will help us determine the loan that will be the most suitable for our needs. Whether something is affordable or not has to definitely be weighed in.
If one is seeking to go abroad for higher studies, then one might be looking for a loan that would provide a long-term repayment option. This would allow the student in question to graduate and start earning before the question of repayment arises. It will make sense to expect an international study loan to be repaid only after one secures a job.
A good loan arrangement will be favorable to the borrower as well as the lender. While entering into a loan agreement, the terms and conditions are clearly written down and agreed upon by both the parties. This makes the position of both parties safe from potential deviation by the other.
I recommend that you do not settle for a loan unless you are confident that it is better than the other options available in the market. There are hundreds of loans that are populating the personal finance markets. Thus, it can become confusing to decide which loan to take up. Given that most of us do not have expert knowledge of personal finance issues, it is helpful to contact a financial advisor. Do not forget to think of the following too:
1. After you get this loan, will your need be satisfied, or is this one of a series of loans? - Is the bank approving the entire amount or only a portion of it? What is the initial amount that you need to pay? No matter what kind of a loan you are applying for, you will be expected to pay a nominal fee as part of the initiation process.
2. The EMIs payable and the duration for closure of the loan repayment - Can you afford to pay the amount or will it be difficult? If you choose the latter as your answer, then you need to speak to the bank and try and alter the EMI payment pattern
3. What happens if you miss a payment or two? - If you are not able to meet the EMI dates, what penalty will be levied? Will this be calculated on that particular installment or on the overall principal amount? Also would the lender charge an extra fee if the cheque does not get cleared and needs to be presented again?
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