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Do your research before taking a loan Compare loan fees and rates with different banks and financial institutions before applying for a personal loan
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here are times when your pay cheque just isn’t enough, and that is when the need for a personal loan arises. You can find personal loan providers everywhere. However, with so many places to choose from, where do you start? A personal loan is an amount of money, which you borrow from a bank or other financial institutions. Ordinarily, the borrower receives a lump sum and in return, he agrees to make regular repayments, usually monthly. Assuming you have taken out a repayment loan, some of the money you repay will go towards servicing the loan and the rest of your payment will be used to pay off capital and reduce the outstanding debt. A personal loan can be a good option if you have a number of debts, which you wish to consolidate into one loan. In doing so, you ought to be able to simplify your affairs and often reduce the overall cost of credit. Banks and specialist finance companies all offer personal loans, so you will need to shop around. Different lenders have different preferences when deciding which borrowers to take on. As a borrower when you are considering one deal with another, make sure you are comparing like with like. The interest rate to look for is the Annual Percentage Rate (APR). The APR is a method
A personal loan can be a good option if you have a number of debts, which you wish to consolidate into one loan. In doing so, you ought to be able to simplify your affairs and often reduce the overall cost of credit
of making a true comparison between different personal loan interest rates. It shows the true interest rate of the personal loan you are being offered. The lower the APR on a loan the better because it means you have less interest to repay — so the loan is cheaper. Interest rates vary, and it is worth bearing in mind that some lenders are only interested in lending to people who they regard as a low risk. These people may secure lower interest rates.
Lenders vary in their approach, they will want to ask personal questions about your finances and your plans before making up their mind on whether to lend and at what interest rate. If you cannot pay back the loan for whatever reason, talk to your lender at the earliest opportunity. They will want to consider carefully your individual situation. If they reasonably believe your financial situation may improve, they may be prepared to suspend
loan repayments for a while or extend the term of the loan. In the final instance, they can insist on the debt being repaid. In this day and age of Internet everything you need is just a click away. So are loans. The loan process has become easier and more customer-friendly. Consumerism has increased to such an extent that it makes us want things right now rather than wait for months or even years to save enough money to buy the things we want.
Therefore, today we don’t think twice before committing ourselves to indebtedness. The personal loan schemes are quite promising, no doubt, but we need to be extra careful. Unsecured loans, such as personal loans are usually very expensive. While availing a loan has become affordable and simple, it does have its drawbacks. Banks offering personals may not always tell you the full story. Therefore it is important to delve deep into any loan offer and make the right choice. Here are some helpful tips to look out for before you decide to avail a personal loan: ◗◗ Think twice before borrowing money without security. You
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