| Availing a loan is quite easy these days. Virtually every | | | | difference is quite palpable. |
| bank in India is offering one loan scheme or the other | | | | * Always make it a point to check the prepayment |
| to woo customers. But, from a customer point of view, | | | | fine. This is important especially if the loan you are |
| choosing a loan scheme from the many can be a | | | | applying for is a 15 or 20 year period (say). |
| daunting task. This article talks about few aspects that | | | | * Keep an eye on the processing fee charged by the |
| every loan seeker must consider first before signing | | | | bank. Even if the bank says that they charge only a |
| any loan agreement. | | | | nominal processing fee of 2%, for a loan of 10,00,000, |
| * The loan you may eventually qualify for has a direct | | | | that will amount to 20,000, which is not at all a small |
| bearing on the salary/income you draw annually. If it is | | | | sum in any counts. When you see such 'nominal' |
| low, try applying for a loan with your spouse or | | | | offers, set your mind calculator to do some simple |
| parents. | | | | calculations before proceeding further. |
| * If possible, always go for a loan scheme whose | | | | * If an insurance cover comes along with a loan |
| interest rates are calculated on a monthly reducing | | | | scheme, you can go for it. |
| basis than a yearly reducing basis. Whichever way | | | | * Finally, make it a point to read and understand the |
| you analyze, the former method is always profitable | | | | terms and conditions, its various clauses and sub |
| for the borrower. Else, you'll end up paying more. | | | | clauses. Understanding the fine print helps you to |
| * Public sector banks have a lesser interest rates than | | | | realize whether you really benefits or not from a |
| private banks. In the case of some loan schemes, this | | | | particular offer. |