The most advantage of individual consumption loans is simple procedures, fast-compact so now it is the method of borrowing money chosen by many people. To ensure your interests, the borrower should not ignore the notes below.
Read the contract carefully
The current loan conditions are more open with many attractive incentives, but there are certain constraints. Therefore, the borrower should carefully read the contract. You need to pay attention to the terms, especially the time limit for changing interest rates. Furthermore, customers must ask the customer relations specialist carefully, if, under the terms of the contract, interest rates will be up to how much. As a result, banks and clients have built up long-term relationships and at the same time avoiding potential risks for both parties.
Learn about repayment methods
The two most common means of repayment are the first debt and the gradual reduction of debt. The default method of payment is for the form of unsecured loans. Every month, the customer pays the principal plus fixed interest rate. For example, you borrow 200 million with interest 1% per month and pay in 40 months. Thus, you will spend 5 million each month and 2 million of interest.
With a monthly payment method, customers will pay a sum of principal and interest. Thus, the monthly interest paid to customers gradually reduced. For example, you borrow 200 million and pay in 40 months with interest rate 1% a month. So the monthly you pay is 5 million. In the first month, you have to pay the original amount of 5 million plus 2 million of interest. In the second month, your remaining balance is only 195 million. Thus, the amount of money paid by customers in the second month is 5 million plus 1,950,000 of interest. The amount of interest will decrease with the amount of debt remaining month by month.
Therefore, you need to find out about the repayment method to estimate your financial ability. If the interest rate on the original loan is applied, the published interest rate seems to be much more attractive than the actual loan rate. Many customers who do not understand will mistakenly borrow from the original loan to pay less interest. In fact, after the recalculation, the total amount of interest paid by customers is much higher than the method of paying interest based on actual debt.
Take advantage of incentive programs
Borrowing means that you have to pay debt plus interest. So taking advantage of the interest-rate loan programs or privileges given to ease the burden on yourself is essential. However, borrowers also need to be cautious about lending at the time of the promotion.
With banks nowadays, there are many forms of lending that are easy to attract borrowers, such as mortgage loans, life insurance loans and electricity bills for your choice. The lowest interest rate loan is the time of year-end promotion. The borrower needs to be alert to the conditions of the loan and fees such as prepayment, late payment, etc. Therefore, you do not be too interested in the initial interest rate during the promotion, but you forget about how much interest rate after the interest rate, so borrowers need to ask very carefully to plan repayment. Furthermore, you do not let the interest rate paid after the new promotion bite the bear because the terms in the contract do not pay attention.
Therefore, before deciding on a consumer loan, the borrower needs to look into the factors of affordability, and is it necessary to use the credit? If it comes to the level required to borrow, customers should actively look beyond the preferential interest rates; the post-promotion interest rate will be calculated how should be specified in the contract.
Do not over-borrow
You can borrow a large sum of money to buy a home, but you can pay a monthly interest for the bank. Borrowers must analyze their daily expenses including food, gas, tuition, money for shopping, etc. Also, the borrower must pay interest on the monthly loan to the bank. Once you have listed all the items, you will find how much you should borrow to match the financial situation. Many customers earn about 12-15 million per month is difficult to pay more than 10 million of principal and interest when buying expensive apartments.
Estimated long-term ability to repay
When borrowing for extended periods of time, interest rates will be adjusted up or down depending on the market situation and policies of each bank. If you do not prepare carefully, the borrower will be put into a passive situation because of the possibility of interest rates increase over time. Therefore, you need to estimate your solvency before making a loan decision carefully. Customers should consider the interest rate conditions and monitor the market interest rate fluctuations to anticipate large amounts of money; the original debt can be paid for a long time or not.
Hope that the post will help you understand more about personal loans. If you want to find out more information about the credits, you should visit Asterias Personal Loans to know more.