The first thing to pay attention to is bank reliability. Large financial companies always lend out on better terms, as opposed to smaller ones. Yes, they can attract the customer under two, or even at one percent, but here you need to carefully examine the contract. Most likely it will be a daily rate, and thus in a month you will have to overpay at least 30% and if you calculate how much will be per year? This is not written in the usual font, so if still decided to take credit in such a company, take with you a magnifier and carefully read the entire contract…
The next important point is a salary project. Yes, not many people know, but if you get a salary on the card of a certain bank, then in the queue go there and apply. Why? Because mostly for payrolls, loans are given out at a smaller percentage, since the bank knows you are employed and consistently receive income. For other banks it is necessary to provide all sorts of certificates, copies of labor and so on to confirm solvency. However, it is not necessary to stop only on your bank, there should always be a choice. Perhaps another bank will be able to offer the best terms and lowest interest – in any case it is important to read the contract carefully!
Engaging a co-borrower. Everyone knows the way to lower the rate is to attract a co-borrower. It can be spouse or spouse, relatives, etc. But it’s important to know that not all banks and not on every loan can afford it. If this type of loan provides such opportunity – use it!
Insurance. Controversial way to reduce the percentage, after all, still overpay for insurance? The No. With the correct calculations, insurance can reduce the interest rate by 5% or even more. Again – at the correct calculations. Ask your consultant to count the benefit – how much you overpay interest under the original terms and how much if you take insurance. Don’t forget – that insurance is not just a bank-imposed product, but a necessity in case of contingencies.
Payment is off schedule. This method will help you if you have already taken out a loan and interest is charged on the residual amount each month. It is easiest in such a situation to know in advance that you are able to pay more per month than the bank requires. Interest will decrease depending on how much more you put on core debt.
Take the amount more than you need. Consider by example. Let’s say you need 500,000 to buy a machine, the bank calculated you 15% per annum, but youapprovedthe amount of 700,000 at 13% per annum (that is, the amount is more than necessary, but with the lowest interest rate). In that case, it is better to take 700,000, buy a car for 500,000 and the difference of 200,000 put back into credit. In that case, you will have a debt of 500,000 at 13% per annum. Here it is important to clarify with the consultant whether early repayment is possible and on what terms.
All these ways will benefit only if you read all the terms and conditions of the contract carefully and talk to your consultant. It is not necessary to be afraid to ask them questions – it is in their interest to explain all conditions to you, to dispel doubts