VITAL EXAMINATIONS OF THE LOAN SCHEMES IS MANDATORY
These days the increased number of services make people thrilled about the loan schemes. But one must be careful before venturing out to access any of such services. There are often loopholes that may lead a person to danger.
INTEREST RATES FIXED ON THE SHORT TERM LOANS
The short-term loans, especially in the form of the payday loans, are fixed for tenure lesser than a year. So, the interest rates may also vary. The varied pattern of the interest rates also depends upon the institution which is offering the Short term loans.
- Payday loans:
The payday loans which are marked on a short-term basis often come in higher interests like 2000% per annum. However, often there are other lenders who can offer for lower rates like 400% per annum.
- From banks:
Some of the banks often offer payday loans at highest rates of interns. But the special banks have a scheme especially for the ones with a poverty-stricken background; the interest rate for them is amount 1320% to 270% per annum.
- Going for lowest possible EMI:
Some people feel that going for the lowest EMI is a great idea. However, it is important to mark that Telewest EMI is a result of the longer repayment terms as well as the lower rate of interest. So, in this case,it is important to calculate the interest payout that can be made possible.
- Reducing interest rate and flat interest rate:
In the former criteria, it is the borrower who pays the interest on the total balance of the loan while in the later, the scheme is different. In this,the borrower has to keep on repaying throughout the tenure of the loan.
AVOIDANCE OF HEFTY FEES
One must be very careful before taking a loan from anywhere it is accessible. This can prove to be a wrong decision. The lenders are too clever to give quick loans without any restriction which makes it attach the interests also too quick. The loans then start coming with the organization feed and three for the application. The organization fee that is levied is mostly less than 2%. If the rates go higher than that one must immediately stop the process there itself without fail.
There are some lenders who love the idea of also imposing a penalty in the form of the prepayment. So, it is quite important to understand all the merits and the demerits before trying to do something wrong.
WHICH IS BETTER? CREDIT CARDS OR THE PERSONAL LOANS
The two options that are available to the people with the good credit scores are the 0% interest balance transfer method for the credit cards and also an unsecured personal loan. Both the things can be a brilliant idea. But the things that can set a comparison are the interest rates, the fee for the balance transfer, and the fee for the origination, the length of the introductory period, the fixed rates and also the scores.
One must possess good brains before applying for any kind of loan. There is always a need forcross-examination several numbers of times before actually deciding to do anything.