Loans Cheap
Cheap Loans should by no means be considered as a loan for the weaker section of the society. It's meaning may differ from person to person. For some a loan with a low rate of interest is a "cheap loan", for others it could be a loan that yields the minimum monthly payment.
To give a broad definition of a cheap loan, it may be said, "A loan which is a well churned mixer of minimum possible interest rate, low Equated Monthly Installment, flexible repayment options and negligible overhead costs". In other words, "cheap loan" is a loan that suits the financial condition of a borrower.
Getting a loan with all its components pushed to the lower end is difficult but not impossible. The financial market in the present time has a number of lenders who offer very lucrative and very competitive cheap loan deals. These loans can be personal loans, home loans, auto loans and many more such loans. In fact, the list of cheap loans is unending. The worth exploring websites for cheap loan deals are www.interloan.co.uk, www.kelkoo.co.uk, www.businessseek.biz.
Getting cheap loans
Getting a loans cheap from the loan market is not at all difficult. However, pocketing a best cheap loan is a task that needs much thoughtful research. There are few aspects that need to be considered in a systematic manner when you are looking for a cheap loan.
Loan parameters that suit you the best:
Laying down the parameters of a loan that you think would make it a cheap loan for you are of utmost importance. Keeping in mind your financial position, you must pre-define, the conditions on which you are willing to take a loan. This is the first step required to consider for getting a cheap loan.
Finding an apt lender:
Finding a lender is a job that does not require much effort. There are swarms of lenders in the market. But, it is true that finding the right lender is a time taking job. An appropriate way would be to search for a comprehensive list of moneylenders and then shortlist a few selected lenders who claim to have specialization in cheap loans. Finally, deliberate at length with the short-listed moneylenders and pick the one who is willing to accept most of your terms.
Choosing a loan
Loans are available with various possible rates of interest. A careful analysis needs to be done with some good mathematical exercise. Loan at a fixed interest rate for a short period of time may be a better option over a loans cheap with flexible rate of interest for a long period. The need is to make a comparison of the final amount payable under the various possible options.
Type of the loan and length of the loans cheap period also play an important role in determining the final burden, which a borrower has to shoulder while paying back the entire loan amount. There are loans that are secured and others are unsecured. Secured loans are available at low interest rates as compared to unsecured loans. Similarly, loans for a longer duration will increase the final amount payable as compared to short-term loans. The logic is - the longer is the duration, the higher is the interest payment.
Overhead costs
Getting loans cheap needs a lot of bargaining with the lenders. There are certain charges that can be bargained upon. The overhead costs that are rarely spelled out at the outset must be negotiated. A large number of lenders tend to charge considerable amounts on account of documentation charges, processing fee and pre-payment charges. All lenders make considerable amount of money on such accounts. Efforts should be made to convince the lenders to do away with such charges, or at least keep these overhead charges to the bare minimum.
Credit report
One factor that would work in favour of the borrower and help in extracting the best deal on the cheap loan from any lender is having a sound credit report. Lenders tend to be more comfortable with borrowers who have a clear credit report.
Cheap loans - Finding one
There is no contention to the point that cheap loans are plenty in the market but then finding one is perhaps a little tough job. Approaching any bank or traditional lenders can get you loanscheap. This process is much lengthy and tiring. It requires a lot of formalities and paper work even at the initial stage. So much time is consumed in the formalities such that the purpose of the loan gets forfeited.
In this age of information technology, loans can be availed on-line. There are several on-line lenders who offer cheaper deals with minimum of fuss. The borrower from the luxury of his or her bedroom can get a loan on-line. On line loans have several comparative advantages. The borrowers are at freedom to explore infinite online lenders and compare their offers with ease. Loans that are offered on-line are at times without processing fee and other overhead costs, which make the loan cheaper. Exploring the online lenders needs lots of exploration and expertise but one alternative way is to go for sites such as www.uSwitch.com, which offers fast and detailed comparisons. Details of on-line cheap loans can be explored at www.cheaploansforyou.co.uk.
Interests rates - why they get higher?
Interest is the most important component of loan; it determines the pinch that the borrower has to bear while repaying the loan. Low interest rate is always an ideal situation but there are times when rate of interest is higher. Few reasons that lead to higher interest rates are:
>> Lenders tend to charge higher interest rates for loans that are unsecured, the simple reason being the much higher repayment risk involved to it.
>> Poor credit history of a borrower will always attract a higher rate of interest. The doubtful credibility of the borrower is a source of exploitation for the moneylender.
>> Unstable income source is one factor that will attract higher interest rates.
>> Borrowers opting for flexi-payment plans have to pay higher interest rates.
>> Borrowers who want loans even after bankruptcy have to pay higher interest rates.
>> Monopoly of lender, in a particular type of loan, is a good enough reason for charging higher interest rates.
