How to choose a bank for lending: Expert’s Advice

When buying consumer goods, we try to get the best quality product at an affordable price. When choosing a bank, the characteristics of the quality of the services are not always obvious, the cost often does not correspond to reality, and credit products are not available to everyone at all. Thus, the question of how to choose a bank for lending arises.

What Should Be Considered?

When deciding how to choose a bank for lending, think of your priorities: speed and guarantee of receiving money, minimum interest rate, low overpayment or the possibility of early repayment without additional fees. After answering this question, take the following steps:

1) Find out which banks are represented in your region of residence and study the conditions for granting loans on their official websites.

It makes sense to consider not only large but also regional, less-known banks, as well as MFOs, P2P lending services that operate without intermediaries or issue the online loans. They are interested in attracting customers and often offer more favorable conditions, being less demanding.

2) Pay attention to the reputation of the lending institution, read customer reviews on the forums.

From the reviews, you can get information about the conditions, the unexpected clauses of the contract, quality of service.

3) Check the proposed amounts and interest rates, conduct an initial selection of suitable options.

The main task of a borrower is to overpay for using money as little as possible. It would be perfect to have a good credit history. Its quality is an important criterion for approval and may affect the amount of lending rate.

If the desired amount is measured in hundreds of thousands of dollars, some banks will require collateral in the form of a pledge. The size of the secured obligation may be increased depending on the value of the collateral.

4) Check the requirements for borrowers, a list of documents, and the time of approval.

The main requirements that banks make to potential borrowers are age, official salary, the place of work, etc. Make sure that you meet the requirements of the bank according to the criteria indicated in the application.

In case of the urgent need for money, consider banks that issue loans within 1-2 days from the time of application. It may be the bank the payroll client of which you are. It has access to information about your income and will not require job certificates

5) You can belong to the category of citizens who are offered preferential rates.

The most common special groups of borrowers are public sector and military employees, as well as elderly people. Differences in loan conditions in the same institution can be determined by its purpose: you can choose a special program for the purchase of a car or housing.

With an approved loan application, do not forget to carefully read the contract and make sure that all conditions are transparent, understandable and convenient for you. Good luck!

 

The Yucatan Times
Business



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