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.
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.
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.
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.
parameters that suit you the best:
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.
an apt lender:
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.
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
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.
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.
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.
loans - Finding one
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.
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.
rates - why they get higher?
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
» 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
» 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