Always know that rate of interest will directly influence your EMIs (Equated Monthly Instalment) apart from the total interest you are paying after completion of the loan. This is the reason loan seekers try to consider lending money from those banks or financial institution that offers the lowest interest rate in the market. This should be your financial plan.
However, it is suggested not to forget checking whether the interest rate is floating type of fixed type. The first type fluctuates with the change in interest rate while in the fixed type the EMIs remain same throughout the loan tenure.
Experts suggest if the loan tenure is short like between 2 to 5 years one must go for fixed type while the floating rate is better for longer tenure.
Do not forget to read the agreement papers properly as some banks or financial institutions may charge you hefty penalty for prepayment as they are more interested if you continue the loan period for the fixed number of years. If you have the intention of paying before the loan period it is suggested to opt for the bank which charges no penalty or just a minimal charge.
Don’t ever take loan from such lender that has strict repayment schedules as there may be some occasions in the period of loan tenure where you may miss paying the EMI. Considering such situation may happen, it is suggested to opt for such lender who has extension or leverage policy for couple of late EMIs without charging any penalty.
Well, if your loan amount is very low and the tenure of repayment too, it is suggested to take a loan from friend instead of from bank or financial institution.
Amid all such a professional guidance is very much required for whatever financial consultancy you are in need. Capital.com is one of such online consultant that offers complete and proven tips with all the pros and cons for your money.