Low-interest loan. What should you pay attention to?
Is there really something like a low-interest loan? And if so, what should you pay special attention to during your search for the best offer? This article will provide you with answers to the above-mentioned questions.
When watching TV or browsing through websites, it’s not difficult to come across bank ads tempting us to take a low-interest loan. However, most of these ads provide us only with partial information regarding the actual conditions of the promoted offer. Therefore, before you will decide to use this form of loan, you should carefully analyze the following issues.
What should you pay attention to in the case of deciding to take a low-interest loan?
Firstly: Value of the APR, i.e. annual percentage rate of the loan. Although in most ads you can find information that interest rate of the loan amounts only to 5% or 6%, in reality it has little to do with the actual state of affairs. The most important information for you is the value of the annual percentage rate of the loan, which in such cases may be as high as 30%!
Secondly: Check whether the interest rate is fixed or variable? In the case of variable interest rate, the bank can guarantee that the amount of paid installments will remain fixed only for a few months (e.g. for the first three months). After the expiration of this period, the interest rate on your loan may increase significantly. Which also means that your loan installments will be higher.
Thirdly: Credit insurance costs. Although buying a loan insurance is often optional. In the case of promotional offers, it may be a requirement, while the withdrawal from it may also mean a significant increase in commission or monthly interest.
Fourthly: Loan repayment time. Despite the seemingly lower monthly installment of the loan, it turns out that the ability to repay the loan in a shorter time is a more advantageous option for us. This issue is associated with the value of the annual percentage rate of the loan (APR).
Fifthly: Pay attention to the content written in “small print”. Often these are the most important information about the terms of promoted loans. Carefully analyze the total cost of the loan. Look at the commission value and loan insurance costs. Such information may prove to be crucial in the decision-making process.
Is there really something like a low-interest loan?
Yes! Out of dozens of loan offers, you can certainly find one that will guarantee you a low interest rate, as well as honest and favorable repayment terms. However, the process of searching for such a loan may required a lot of time from you. Thus, in order to save your time, let us do all the work. You will only have to fill out a short form, while we will find you the best possible loan characterized by a low interest rate.