Banks offer a variety of loan programs to their customers. Many offers seem very attractive, but this is not always the case. Therefore, do not trust advertising and learn to choose options consciously.
Interest rates on loans have recently grown at around 2-3. This is explained by the banks’ fear of the crisis. Nevertheless, the banks are in a fairly tough competition, and they are interested in attracting more customers. This is reflected in the diversity of the proposed loan programs, among which you can choose the most suitable one.
Almost any bank can offer several lending programs. They can be divided into two groups:
- Loans for people who need to receive funds in the shortest possible time, while it is not possible to prove their financial income;
- Loans for those who have some time and the opportunity to collect the necessary documents.
Express loans are the fastest way to get money, but the interests here are very high. In this case, if the bank does not have time to verify the reliability of the borrower, all the risks are inherent in the high rate. In the case of regular loans, when a bank checks documents provided by a customer and makes a decision within a few days, they are more profitable in terms of overpayment.
How to Get a Personal Loan
Since the choice of the proposed loan programs is very wide, it is worth applying for several suitable ones in different banks, and then finally choosing the most profitable option. You can use the Internet to visit the sites of banks. Often, you can calculate the upcoming payments using special loan calculators on such websites.
When choosing it is worth considering the below points:
- First of all, pay attention to your payroll bank. Banks offer additional benefits if the customer receives a salary on the card of this bank. If the conditions do not suit you, then consider the proposals of large banks.
- Be sure to ask what will be the full cost of the loan. This is the most important indicator by which you can compare offers from different banks. The effective rate will include the nominal rate and various fees charged by the bank when processing and servicing the loan. It is worth noting that banks often offer interest-free loans, but they compensate for the lack of interest with various commission payments. The result is that an interest-free loan is not the most profitable.
- For most borrowers, it is easier to navigate through the various offers by comparing the overpayment. This indicator is even more visual than interest rates and will let you know if you are choosing an expensive or cheap loan.
- The sum should be the one that you really need, and the term should be as short as possible. But you should make sure that the monthly payments are about 20-30 of your income. These conditions are considered to be the most comfortable.
While applying for a loan, it is essential to be attentive and check all the terms before signing an agreement. Good luck with finding the lowest interests!