Getting a loan is easier said, than done. While
approaching for a loan it may seem to you that all banks are eager to lend, but
getting a loan sanctioned is actually a tedious task. Also, in order to avoid
any nasty surprises, it is crucial to be acquainted with the basic knowledge
about the home loans and how they work. The listings below outline some
important things which are must to know -before signing on the dotted line of
the loan taking document.
The Eligibility Criteria: Along with your financial strength the factor that affects your
eligibility for loan taking is your profile. Plus, the latter also effects on
the amount that the bank agrees to lend . For instance, for individuals with a
stable source of income get a personal loan,Installment Loans or any other loan easily relatively in
comparison to a person with erratic earnings.
Your Loan Type: Before
taking any decisions, it’s
really very important to know about the loan types. The loan
policies, clauses,
benefits and interest rates vary from loan to loan and from bank to bank. So
before singing on any of the documents make sure you are well versed with the
niches of the loan type you decide to hold onto.
Negotiate the Interest Rate: Whatever option you fix for the loan taking, don’t
forget to negotiate. Though the lender/bank may have an upper-hand, but still you
can haggle- and you may also get additional benefit if you are an old customer posing
with a long term relationship with the bank. Keep a clean record of your credit
history, as you may use for the negotiation of the loan amount and the interest
rate.
Besides the above the most important thing is
to read the documents carefully before signing. A loan agreement is often
incomprehensible, thus there can be a few hidden “devils” in the details.So you
need to be careful about the penalties and add-on charges. It is not merely the
interest rates that are required to be paid by you. The additional charges such
as processing fees or service and administrative charges that is included in
the add-ons.