3 Key Factors For Comparing Loans
Guest post by Martin William
The desire and need to borrow money from a financial institution has crossed our minds at least once.
It’s hard to find a person who hasn’t thought about applying for a loan for a specific situation.
It’s even harder to imagine a person that doesn’t use the services of the financial institutions.
Maybe in some South African tribes don’t know what a loan is, or what a credit officer does, but we definitely live in a developed financial system and have financial needs.
The tradition of Feneration (usury in some cultures) and money lending in simpler words, has been around since the year 400 B.C.
The chroniclers describe a regular moneylender as a person sitting behind a table and offering their financial services.
But there were lots of moneylenders back then sitting behind the table. The situation has not changed.
We simply upgraded the technology and adapted our money lending with modern innovations.
You most probably get some messages and pop-up ads on your social media from banks and other financial institutions.
They are all telling you to apply for a loan with them. . . but which one to choose?
That’s the hard question to answer.
Well, we hope these 3 key factors will help you decide with the comparison of loans.
Low Interest Rate
When you are looking for a loan, you are looking for something that won’t rip you off your money at the end of the final payout.
People are always looking for lower rates, and that’s perfectly reasonable.
Think about small business loans and how they benefit your business.
You would want to pay the smallest rate to return the money, or you’d be again putting your company in a tight financial situation.
Different banks have different options for their loans.
Even a specific bank has different options on its different loans.
You need to carefully read the terms and conditions and ask your credit officer every question that comes to your mind.
Consider also this. Some financial institutions like to beautify their loan announcements with 0% interest rate.
Remember, some companies do offer customers 0% interest rate, but for the first loan, and for the first month.
It’s a great opportunity for a customer to try out the services of an institution and decide if they are compatible with their desires.
Paying off the debt early
Look into the details of early payments.
Sometimes we need to borrow some money and turns out that we didn’t have to stretch it out on one year.
Maybe after a few months, your financial state allows you to pay off the debt completely. In this case, consider looking into their terms and conditions.
Don’t let the credit contract slip away from your attention.
Read it thoroughly and see if there’s any catch.
Finance experts Max Funding say “when completing application forms for a loan, it is essential to read and understand the fine print.
Read through all the terms and conditions and consult a lawyer and your accountant to ensure you do not run into any financial trouble or get hit with any unexpected fees.
The thing is that some companies and banks offer you free early pay off and are happy to assist you with more.
Some companies have their own rules and terms and will ask for some fee, tax or a percentage of your loan to cover in order to pay off the debt in advance.
You would want to know about that.
Something you should remember about financial institutions is that they love hidden charges. because many regular customers don’t bother to check the contracts and requirements to see if there are any extra costs to cover.
Hidden charges include some extra communal fees, fees for internet and mobile bank services, etc.
Make sure that your desires and needs are combined when making a decision to choose a loan and the bank.
An ad may seem attractive and appealing, but remember that conditions and requirements are most important when it comes to the final result.