Prepare yourself before getting loans

Prepare yourself before getting loans

In our life, we have many dreams, many goals to achieve. Money makes this possible to fulfill our dreams into reality. We need to support our family efficiently. For this, we need money. But we do not have pocket full of money all the time. An empty pocket becomes a barrier to make things possible. But should we stop dreaming for that reason? The answer is no, as long as we have a stable earning, we can have an option of taking Loans.

We cannot always take up decisions those are based on what the bankers want to sell. That is why a wise decision of taking loans from a safe zone always seems to be good. Make sure that your earned money from your hard work never goes in vein. So opt for a healthy policy and please do a home work before you go for any contract agreement.

This article is for you to make it easier for you as a view get before you take any kind of loans. The calculation for interest is not a rocket science. But this is a very complicating calculation that may deceive you. Always try to understand the price-feature tool of interests. For any specified scenario, always take a wise decision of to find the best deal for you. There certainly lies a risk factor about to cover up the huge amount of loan plus interest you have to compensate in future. So be careful. Here are some basic questions before you sign a contract-

1. What is the total amount of money you have cover up?
2. How should you choose a suitable loan policy?
3. What are best deals you can find from that bank you opt for?
4. What are the steps you would need to take about the risks you may face later?
5. How much amount and what type of loans you are eligible for?
6. Which banks gives you the lowest rates?
7. How can you get your loan fast?

The type of loans you can have:

• Home loans
• Car loans
• Personal loans
• Commercial loans
• Loans against security
• Business loans

The types of loans on the basis of lender’s point of view

Secured loan – the borrower can get the loan with collateral (that is a car or house or land or property). Example: Mortgage loan.
Unsecured – this does not include any collateral, available from the financial guises or business packages. Example: Personal loans, credit card debt, bank overdraft etc.
Demand – a type of short time loan, no fixed date of repayment and a floating interest applied over it. Example: commercial loans.
Subsidized loan – a type of loan where interest is reduced, a hidden or on explicit subsidy is applied on the interest.