Finance Loan

Get the Best Deals For Loan

Published at 02/07/2012 17:04:07

Get The Best Deals For Loan

Some people are very interested to take a loan for different purposes but they do not think about the deals for loan they can get. This is very bad. A person must have a clear sense about the loan and about the deals of the loan. Do not be exited to get money in an unsecured way. This can harm you and your economical life at any time. Try to make the best possible deal while taking a loan. These deals will provide you the better securities in the future. There are many terms and conditions of taking any type of loans. A lender must try to follow all of them to avoid any kind of problem in the future. The first thing to do before going to your bank for loan is to understand loans completely and the terms and conditions involved with them.


A person needs to have three things to make the best deals for loan. They are: character, capacity and credit. Character means what kind of person you are. This means whether you are actually reliable to take loan or not. This also means you have a continuing and steady employment. It also means if you are a trustworthy soul or not. Now we come to the point of capacity. Capacity means how much debt you can take at a time. For this you need to consider your debt to income ratio. This ration is calculated using debt amount and your gross monthly income. If your ratio is about 33 percent, then you are allowed to take out a home loan. This percentage is different from one loan to another. Credit means your FICO score.


Capacity, credit and character are said to be the “three Cs” from a bank’s view. This is the basic need of a bank to give the best deals for loan to a person. These three Cs tells a bank if you are allowed to take a loan or not. If you go to several loan companies then you will see all of them follow the same policy to give loan. These three Cs are the best deals for loan. There are some terms and conditions of a loan. For example: interest rate, repayment period, different discounts, fees and so on. The main deal is the interest rate. A person whose income is low should not take a loan of high interest rate. Interest rate is also called APR or annual percentage rate. This rate must be paid annually. Lower APR is much better than higher.

Tips and comments

Now it is time to know about the repayment period. This is the period for which the loan is taken. Basically, there are two periods for loan repayment. They are long and short periods. You have to be concerned about the other fees and discounts of a loan. If you get a loan from a bank then the bank will cut an amount (an quarter amount of the total interest rate) from your interest rate. Again keep in mind that a bank will charge you for late payment. So, payment must be done on time. Before taking a loan make sure about your credit score. You can take any kind of loans such as car loan, home loan, construction loan, marriage loan, study loan, business loan and so on. That depends on you. But make the best deals for loan to make your loan so successful.