Choose your personal loan wisely

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Choose your personal loan wisely
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Secured Loan or Unsecured Loan Which is the
best?

• Secured loans are those loans that are protected
  by an asset or collateral of some sort. The item
  purchased, such as a home or a car, can be used
  as collateral, and a lien is placed on such item.
• Advantages
• Offer lower rates
• Higher borrowing limits
• Longer repayment terms than unsecured loans.

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Continue..

• In unsecured loan, Lenders take more of a risk by
  making such a loan, with no property or assets to
  recover in case of default, which is why the
  interest rates are considerably higher. The
  lender believes that you can repay the loan on
  the basis of your financial resources. You will
  be judged based on the five (5) C's of credit --
  character, capacity, capital, collateral, and
  conditions these are all criteria used to
  assess a borrower's creditworthiness.

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Learn what is floating or fixed rates?

• Better to clear on this point
• It is always thought that a fixed interest rate
  means same rate throughout the  tenure but
  sometimes it is adjustable after a certain period
  of time, provided which either your EMI amount or
  the loan tenure can increase.
• On the other hand
• If you are opting for the floating rate loan,
  make sure that your lenders floating rate has
  come down at least over the past two years.

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Always Compare Loan Providers

• Lenders can be compared under following points
• Processing fees
• EMI, Interest Rate and Tenure
• Pre-closure Charges
• Loan Amount

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Other Points to be kept in mind while availing
home loan

• Use the debt calculator to work out what the loan
  will cost you each month and in total.
• Check your credit score - Having a good credit
  score puts you in a position to attract the best
  deal on your home loan.
• Finalize Your Property Then Go For A Lender
• Know Your Home Loan Eligibility Status

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Final Step

• Make sure you have understood all their terms and
  conditions correctly. Ask for as much information
  as you need or consult with Paisabazaar.com

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