How to get the most favorable loan? Benefit criteria for the borrower

Issues of convenience (convenience) and urgency when making an online credit card. The issue of the benefit of borrowing (credit) money can be interpreted differently. But generally, the benefit of bank lending is the optimal combination of the following factors:

Bank loan amount

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It is not always possible to arrange a loan of the required size in one place, it is necessary to “pick up” the necessary sum of money from other sources. Therefore, the possibility of obtaining all the necessary amount (usually large) in one place, one lender – is certainly advantageous from the perspective of the borrower.

Interest rate on the loan. The value of the interest rate (loan interest) determines the amount of payment by the borrower on the body of the loan per unit of time (year, month, day).

The smaller the interest rate on the loan, the more favorable it is to the borrower. In order to properly compare interest rates on different loans, they must be reduced (scaled) to a single unit of time. Yes, one percent a day is 365 percent a year, and 24 percent a year is 2 percent a month, etc.

Loan repayment scheme

Loan repayment scheme

The benefits of a loan repayment scheme for the borrower are ambiguous, beneficial to some, and some to some. In today’s banking institutions, the most common are the following repayment schemes:

Annuity – the body of the loan and the amount of interest overpayment for the entire turnaround period are summed up and broken down into equal (usually monthly) parts;

Term of crediting. It is generally accepted to consider “long” credit money, the terms of use of which (reversals) are maximally stretched over time, and allow a more optimal distribution of the borrower’s efforts to accumulate the repayment amounts. Long loans are also profitable for the lender.

Therefore, as a rule, the longer the loan period, the lower the interest rate on the loan. For the most part, the borrower should in most cases seek to make a loan for long periods. On the other hand, with large credit terms, the amount of total overpayment on the credit body increases. Therefore, in order to maximize the benefit of the borrower, to make a loan with a long repayment time should aim at its early repayment.

The availability of early repayment

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Is certainly a sign of favorable credit conditions. More precisely, such conditions in which the possibility of increasing their “profitability” at the initiative of the borrower. If the lender denies the borrower the possibility of early repayment of the debt, then most likely, the terms of the loan agreement are truly bonded, and the lender wants to make the most of it.

Availability of preferential terms for loan repayment. To attract borrowers, lenders can offer a variety of preferential terms that, if properly used, can serve to the benefit of the borrower. Such preferential terms may be: interest-free periods for repayment of the original loan, reduced interest rates for certain categories of borrowers, deferrals of repayment periods, and others.