When you decide to take a loan there is one big question to answer – which type of loan should you take? The purpose for which you need the loan can make this question simpler to answer. For the common reasons for buying a house or starting a business or buying a car, there are plenty of loans designed for such specific objectives. These loans are designed so as to allow disbursements as required. These are cases where the loan amount would directly be transferred to the respective account to enable the property or the asset transfer to happen. In the case of smaller loans like personal loans or payday loans and other advances, the amount would be transferred to the borrower’s bank account. The borrower can then use the money credited for any type of expenses. The method of repayment of the loan, the additional fees charged with the loan amount all differ. There are so many such tiny details that set apart one loan from another. This is the one main reason why doing enough research about each type of loan would be important before applying for one.
Importance of comparing loans
When you compare loans you would not just be comparing the different types of loans but also compare the features of the same type of loan offered by different lenders. Even with the same lender for the same type of loan, based on your credit score and based on your income and other such parameters the loan structure allotted for you might be different from the loan structure allotted for another borrower. Comparing the loans would make it easier to ensure that you choose the right type of loan, the right lender and the best rate of interest for the loan.
The purpose for which you are applying for the loan, the number of existing loans, the regular income proof, the stability of the income are all factors that should be taken into account for you to get a clarity about the amount of money you can afford each month for the loan installment. Only when you compare the different loans and the different loan providers would you be able to understand better about the feasibility of repayment and the difficulties or risks associated with each loan.
How can you compare the loans?
There are plenty of online platforms that allow you to compare all the loan options for the given requirement. https://epikavippi.fi/pikavippivertailu/ websites like this one are designed to help borrowers to analyze all the available options. Instead of having to scroll through each bank or lender’s respective website one can get a snapshot of the loan structure simply by using such online comparison tools. Then once you have shortlisted the best and the cheapest loans available you can do a detailed study of each of them from the respective websites.
Talk with the customer care team of the chosen lenders. This is going to help you in two ways – one is that you would get enough information about the loan you are applying for. The other main benefit is that you would also get an idea about the ease of communicating with the team, the speed of response – the customer service on the whole. Compare all the options to pick a loan from a lender who offers convenient customer care and options to track the transactions that take place in the loan account.
Compare to find the flexibility in loans. Unless and until you compare the loans it would be difficult to find the most flexible lenders. There are lenders who have easy pre-closure options for the loans while there are some lenders who do not allow closure of the loan before the fixed tenure. There might be a fee charged for the closure of the loan in advance but this would be better than continuing to pay installments and have an active loan in spite of having the funds to close the loan.
When you compare the loans you would be able to find the ones that are more flexible in terms of the credit score. The value of the credit score accepted by each bank and lending institution varies. So if you require a cheap loan, then make sure that you compare the various options you have.