Read The Norms before Going for Cheap Loansby Freja Nilsson Mobile Loans Cheap loans, as the name implies, helps to get the loans at lesser interest rates or the repay amount is lesser than any normal loans. Degree of the cheap loans or Billige lån may differ depending on the duration for which the loan is taken, amount and so on. There are many companies, who are engaged in providing the cheap loans, but you should compare the interest rates and other hidden charges or terms and conditions imposed on the same.
Except few loans, in every loan your credit history matters a lot. In fact, it can be said that the chances of getting the loans at low interest rates is proportional to the credit history you have. Also they take into consideration your repayment history of the loans and checks for any lapses in the same. If your credit history is clean and positive, you are prone to get good loan schemes.
But Billige lån is after all is a type of loan. So if you are taking the loan, it becomes a compulsion for you to repay it. Apart, the punctuality of repaying the loan matters a lot. With loan you are already in a debt, but by not paying the loan back on said time, you will increase the amount of debt because of late fees and other extra charges.
So taking loan alone is not important; you should plan as if how you are going to pay it back. Also, check whether you actually need the amount for loan or you can lessen it. Say for instance, you are borrowing loan of 10 lakhs at 20% per annum, so you have to pay total 12 lakhs at the end of the year! Instead, if you can arrange for 5 lakhs and go for borrowing 5 lakhs, you can lessen your interest amount to half. So depending upon your needs, choose the loan amount wisely.
Other important choices the lending company gives is, the duration of loan. It is good to get debt-free as soon as possible. Many times the company provides you the choice of repaying money sooner, which can deplete the rate of interest many folds. Hence before approaching the lender, you should ask all such relevant questions. After all, who don’t like more bucks in their pocket?
Some of the questions you should ask the lenders are:
• What are the different rate of interest depending on the duration of the loan taken?
• Are there any extra or hidden charges?
• What about the late fees?
If possible, go through the pre-decided or framed terms and conditions for taking the loans which can be specific to the company. Don’t miss to read the terms and conditions written in fine hair like letters. Many times, though the lending companies haven’t disclosed it, they have the point mentioned in such small letters. For instance, they can impose the delivery charges or handling charges, which might make the cheap loans expensive.
Skimming the cream of this article, as a borrower, dont get tempted seeing the less rate of interest. Go through the entire bunch of terms and conditions mingled with the loan.
Created on Dec 31st 1969 18:00. Viewed 0 times.
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