Give Space to Your Desires to Grow with Low Rate Personal Loan

 


Visitors: 173

Today if you need to borrow money, numbers of options are available with you. The market is full of lenders, whether you take the physical market lenders and the online lenders offering you the loan. Therefore, it is your choice that matters in getting a best loan.

Due to such tough competition in the financial market, personal loan interest rate is falling at a speed. This in turn, also makes somewhat difficult for the borrower to make a choice between the various lenders offering the personal loan.

Competition in the market reduces the level of profit of lenders. Therefore, in order to increase their level of profit they may undertake certain activities. These activities might increase their profit but they adversely affect the borrower. Some of these activities like adding a hidden clause or cost in the contract of loan, which the person or the borrower is not aware. And he gets aware of these facts after entering the contract when nothing can be done in order to save himself from this clause or cost.

When the person decides to go for a loan he must not only consider the rate of interest or annual percentage rate but also the other costs involved in it, such as procuring cost etc. Basically, the annual percentage rate is decided on the base of the risk involved in lending the amount. This process can be technically termed as risk based pricing. Just for instance, if the lender feels that there is high risk involved in lending the amount, he charges higher rate of interest. On the other hand if he feels low risk is involved, he tends to charge a bit lower rate of interest. Therefore, it can vary from individual to individual depending upon their circumstances.

The general clause which most of the people are not aware of is that there is penalty on the early payments. This may be one of the hidden clauses of the loan. Generally, the people think that by making early payment of loan they will save the money. It is not the way it seems to be. The lender can charge the penalty on your early payments if this clause exists in your contract. The penalty can be equilavalent to one or two month’s interest, which the person cannot deny.

With low rate personal loan, you can consolidate your debts, can use for your home improvements, buying a new car or any purpose as you like. Personal loan lets you to fulfill all your personal needs.

Before you decide to go to the lender, consider thoroughly all the above points in order to safeguard yourself from ill affects of the hidden cost involved in the contract of loan.

Mary Jones is an expert financial advisor. She has done Masters in Finance from London Business School. To find Payday Loans, Personal Loans, Low rate personal loans , Secured Loan Unsecured Loan visit http://www.loansvalley.co.uk

(507)

Article Source:


 
Rate this Article: 
 
Low Rate Secured Personal Loan - Cheap Rates With Bigger Amount
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Pay Minimum Price for Your Loan by Taking Low Rate Personal Loan

by: Amanda Pane (September 25, 2006) 
(Finance)

Secured Personal Loan: Your Very Own Multipurpose Loan With A Low Interest Rate

by: John Carry (September 29, 2006) 
(Finance)

Getting a Low Personal Loan Interest Rate

by: Mayoor Patel (May 09, 2007) 
(Finance)

Securing a Low Rate Personal Loan

by: Paul Rogers (March 26, 2008) 
(Finance/Personal Loans)

Finding A Low Rate Personal Secured Loan

by: John Mussi (December 02, 2006) 
(Finance)

Securing a Low Personal Loan Interest Rate

by: Paul Rogers (April 30, 2008) 
(Finance/Personal Loans)

Low Rate Personal Loans For Affordable Loan Options

by: Johns Tiel (September 01, 2008) 
(Finance/Personal Loans)

Secured Personal Loan: When You Need Hefty Amount At Low Rate

by: Grant Cliv (December 18, 2006) 
(Finance)

Low Rate Secured Personal Loans Easy Access to Low Rate Finances

by: Johns Tiel (September 03, 2008) 
(Finance/Personal Loans)

Low Rate Secured Personal Loan - Cheap Rates With Bigger Amount

by: Johns Tiel (January 25, 2008) 
(Finance/Loans)