First of all, why should anyone need a personal loan? Ever since the invention of money, throughout the world, financial transactions are taking place, i.e. lending and borrowing. There is a general feeling that borrowers, these days, are able to get cash in quick time – much quicker than the time they would have taken to earn that much money. May be getting a loan is easy; but you have to consider the other aspect in borrowing. Within the stipulated time, the loan has to be repaid, in full, with interest and other charges, if any.
How to bargain to get the best interest rates?
For getting anything, there will be some ways and means. Similarly, in the case of okay personal loans also, there are some ways by which you will be able to bargain for the best rate of interest. Decide on the exact amount you require as loan. If you decide to borrow a small amount, you will be in a position to bargain with the lender for a lower interest rate. If your requirement is big, you may opt for a secured loan, where the interest rate will be less. Since you offer a security, you will be in a position to persuade the lender to agree for a lower rate of interest
Almost all lenders will be interested in getting full particulars about you. They would like to know about your credit history, nature of your employment and income. It is better you have with you all these details, at the time of applying for a loan. The lenders would need all these, even before they start processing your loan application. If you do not already have your credit report with you, you approach one of the credit bureaus and get the latest report. You should go through the report to check whether the details are accurate. If you find any error or omission, you should immediately get it rectified.
Naturally you will have an account with the local bank. In fact, your first action, when you decide to avail a loan, should be to contact your personal bank. You can find out from them whether they have any loan options and if so, the details relating to those options. In all probability, your local bank might be willing to offer you a loan against some security. In which case, you can find out full details in that regard. Since you have been having transactions with the bank, you may discuss freely with the official. If, after the discussion with the bank, you feel that there is not even a remote chance of the bank giving a loan, you can think of contacting some of the private lenders. There are many lenders giving personal loans. You should get a list of such lenders and approach them.
You want to get the best deal possible in the matter of your getting a loan. For this, you have to do some hard home-work and negotiate with the prospective lenders. Do not be content with contacting just one lender. Try to contact as many lenders as possible. Collect complete details regarding the interest rate, fees, terms of payment, etc. from each and every lender you have approached. Then comparing the details carefully and select a couple of lenders. You may then start the discussion with them, one by one. While you discuss with one, you should make him think that you have some other options with you. By this, you will be able to get the best terms from him. If you still find them not acceptable, you may contact the other one, or make this lender himself to agree to your terms. Nine out of ten times, you will succeed!
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