Loan is important for every successful business, personal commitments that need money or even to meet emergency need. But there are many things you have to keep in mind before taking loans.
An Instant loan or a fast cash loan is available and this is mainly for the people who need urgent loans in an emergency cases. Here are some important checklists which you must think before taking loan.
Interest rates are very problematic for the people who take a personal or fast cash loan because this is totally unsecured and interest rates are high. But getting the loans will depend on your capability as how fast you can repay the loan but banks offer higher amount of loans those who will need.
But before taking a huge amount of loan look at the interest rate and calculate the EMI. There are online calculators available in the Internet which will help you to calculate the EMI and know the final cost. Generally, people have to pay more than what they take in loans and this amount is huge so always consider before taking loans.
If you think that taking loans is the end of the process, then you are wrong you have also to calculate the processing fees, prepayment and late payments charges etc. Many people choose the option for prepayment but you have to give charge for that and this is usually 2 to 5% of the total amount you have taken as loan.
Pre-payment is a good option and you have to pay a little more extra amount but less than what you will have to pay for the 5 years but late payment can be very bad for you as they charge a good amount of interest for every single month you have delayed to pay the loan.
Getting a loan is really hard, you have to show your job proof and not only that you have to prove that it is secure and you can pay the interest. So, you have to make your documentation ready to get that loan amount. You will have to show identity proof, address proof and bank transactions foe the last few months and income certificate.
Credit history is very important because this will help you to get the loan and banks use this as for calculating the interest rate. If you have good transaction history or payment record and good credit score, then you can easily get a loan. Bank will quickly approve your loan so before filling the form check your credit history.
Harold Prado March 3rd, 2016
Posted In: Business Services