In many cases, a loan is applied for by an individual to pay for an existing loan with a higher interest rate.
That way, the borrower gets to save money by paying a lower interest rate.
While others may take loans for a new house, new car, house renovation, education, or any other unsecured loans for cash emergency purposes, other take them to spend on new appliances, pricey second-hand branded items, or to spend it on a holiday.
Loans are a great way to acquire things that your current cash limits you from getting.
However, no matter how tempting loan offer might sound, one has to think about it thoroughly – whether paying for the high interest rates, which are much common among unsecured loans, is worth it.
This should be especially true for those who plan on spending it on items that give no investment returns and have depreciating value.
Sometimes, even when a loan was taken with much research and thought, some events in one’s life, such as losing a job, may cause a dire consequence on a borrower.
This is one huge reason why even when a loan is easy to get approval, such as personal loans that require no collateral from a borrower, paying back can become a stressful responsibility.
More so, a ruined credit score could affect your life deeply that you could possibly imagine once you get into a situation where your credit score would greatly matter.
Even when you file for bankruptcy, you do not totally take the debt off your shoulders. Debt collectors can still take your assets to pay off portions of your debt and may even require you to shave a portion off your current income to cut down your debt.
On the other hand, getting a loan is not always something one can refuse or simply stay away from.
A new business venture might need one to opt for a loan. Purchasing a new house or car, is another common reason. Or spending for a workspace renovation or extension is a good reason as well.
But for whatever reason, it is important that you are well aware of the payment terms that the loan comes with.
You have to make sure that the paying time period, cost of interest, and the amount to be paid for every month are well within your financial capability.
There are also websites online that you can check out which loans suit your need and when it is that you should get them.
The timing and getting the right type of loan will be a heavy factor as to where your finances will lead you in the next few years to come.
Here are 3 sites that will hugely help you decide whether to go on with your plan to loan, how much you will be paying for it, and when you will continue to do so.
The website’s design is very easy on the eyes, making comparison between bank offers much easier to read and understand.
With each bank option listed, they include the basic (loan term, estimated interest rate, rebates, cash back deals, and the like) and special offers (lower interest rates for the applications done with EnjoyCompare) inclusive of the loans.
There is also an option where the reader can click to go on ahead with the application.
Aside from its Personal Loan Calculator, the website has links to a more detailed overview of the loans per bank.
Some of the details include the requirements, a concise background of the debtor or bank, and estimated approval period of the loan. Also, on each bank option is the repayment summaries.
The website, like EnjoyCompare contains the same basic and specials for the different banks’ loans.
The full-detail preview of each loan offer include process fees, minimum to maximum loan tenure, and the breakdown of interest rates to be charged with the loan.
Readers can apply for the loan directly off Moneysmart website or they can visit the bank’s official website should they wish to know more about the bank and their other loan offers.
If you wish to get important estimated details of the loan, you can also try put their Personal Loan Calculator before deciding which bank can give you the best rates.
It has the basic content of the previous two websites.
Only, ValuePenguin gives a much more details explanation of the loan interest rate and other important details inclusive in each bank loan offer.
Per bank listing, there is a table that shows the applicable interest rates per year, flat rates, EIR (Effective Interest Rates), and monthly fees occurring each year of the loan tenure.
At the lower end of the page, the website explains the technical terms used in the bank loan summaries to give readers a better understanding on the language used in the loan offering.
Additionally, the website also provides the basic requirements of loan applications.
Before making a decision which bank to go to for your loan, take advantage of the features of these websites to find out which bank can give you a loan that will not be a heavy burden to repay in the coming years of your life.
Take into consideration the risk of losing your job or other setbacks that may cause payment delays in the future.
And most of all, always remember to read through the terms and conditions of the loans to know what you are actually getting yourself into.
Gemma Reeves is a seasoned writer who enjoys creating helpful articles and interesting stories. She has worked with several clients across different industries such as advertising, online marketing, technology, healthcare, family matters, and more.
She is also an aspiring entrepreneur who is engaged in assisting other aspiring entrepreneurs in finding the best office space for their business.