Where can I get a loan at a low interest rate? Low interest loan

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Most of the population of Western countries has long been accustomed to exist on credit, and in Russia to live in debt every year is becoming more familiar. For many people, accumulating the required amount, especially a significant amount, is an impossible task - it is much easier to borrow. In this regard, the question of how to get a consumer loan at low interest rates occupies the minds of many of our fellow citizens. At first glance, this is not very difficult - I studied the offers of banks, chose a smaller number and go ahead, draw up documents. In fact, there are many pitfalls in this issue. So let's figure out where to get a loan at a low interest rate and not stumble over invisible obstacles.

Who needs a cheap loan

First, you should decide for what purposes you need money. For example, if you want to take out a large loan at a low interest rate to purchase a home, then it is best to carefully study mortgage lending offers - here the rates are quite low and the repayment periodsignificant.

If you decide to buy a car, it is best to choose a bank that operates under the preferential state car loan program, in which case the state will pay part of the interest for you. But if you decide to look for where to get a loan at a low interest rate for other purposes - repairs, recreation, a complete change of wardrobe or the purchase of expensive household appliances, then this article is for you. First of all, study the offers of banks and choose the most suitable ones, in your opinion. If you do not need money urgently, you can wait for some holiday, for example, on the eve of the New Year, many banks offer reduced interest rates and various bonuses.

How to lower the interest rate

In the event that you do not want to wait, you can try to reduce the interest offered by the bank. For example, a low interest rate on a loan can be obtained from the financial institution where you have a salary card. Reputable banks often make concessions to their regular customers.

Another way to reduce the overpayment is to apply for a loan with good collateral or to attract one or more guarantors. Try to arrange targeted loans whenever possible - the rates on them are always lower.

The best way to reduce the overpayment is to be able to return the money as soon as possible, so before entering into an agreement with the bank, ask if it is possible to repay the loan ahead of schedule and on what terms.

If you need a small amount for a short period, get a credit card - practicallythey all have a grace period during which no interest is charged at all. Sometimes it reaches two months, the main thing is to return the money on time.

Ideal candidate for a cheap loan

Getting a cash loan at a low interest rate, subject to certain requirements, is quite easy. Here are a few requirements, the fulfillment of which will lead to a positive result:

• make a loan for the shortest possible period;
• collect the most complete package of documents;
• prefer directed loans;
• provide the bank with information confirming the level of your solvency;
• official employment will serve as a plus;
• provide liquid collateral to the bank;
• monitor your credit history - carefully make the required payments;
• try to cooperate with the same bank for as long as possible - become a regular customer;
• if you are taking money to develop your business, be sure to submit a good business plan to the bank and bring some guarantors.

Where to find the right offer

Today, the vast majority of people, studying the question of where to get a loan at a low interest rate, turn to Internet services. Indeed, there are an incredible number of offers on the Web, but this method has both its advantages and disadvantages. The first include the fact that almost every site has its own loan calculator, with the help ofwhich you can calculate the amount of the overpayment without leaving your home. In addition, you can not only read the loan agreement, but also print it for consultation with a lawyer. Thus, you can study the offers of a large number of financial institutions without wasting time on long trips and queues.

On the other hand, you can't ask the bank for a discount over the Internet and you lose the opportunity to communicate with a real person. Sometimes the percentage offered by the bank may depend on the personal impression of the manager. By the way, there are times when a bank employee can offer you a loan option, information about which is not yet available on the bank's website (for example, tell about an upcoming promotion).

Bank tricks

Now let's talk about whether a low interest rate loan is always beneficial. Oddly enough, but the small interest rate indicated in the advertisement, in practice, often turns out to be a fabulous overpayment.

What can be considered a low interest rate? Consider a few examples:

• 1% per day;
• 11% per month;
• 10% APR + 0.8% account maintenance fee;
• 16% per annum (no fees).

Looking at the numbers, you might think that the lowest rate is 1% and the highest is 16%. Is this really so, let's count:

One percent a day in a year will turn into 365% per annum. A lot, right? And if you need a loan for 2 or 3 years? Have you counted?

Next option: 11% x 12 months=132% per annum. Too many.

Nextwe have only 10% per annum - it seems to be not much, but if we add the commission for servicing the account during the year 0.8% x 12 months=9.6%, then in the end we get a little less than 20%. And everything started so well…

Now let's take the seemingly largest rate of 16%. If, under the terms of the contract, there really are no hidden service charges, various commissions, etc., then this option will turn out to be the cheapest in practice.

So a low percentage by itself doesn't mean anything. To find the best deal, you need to know and carefully calculate all the costs that will fall on your shoulders.

Instead of afterword

In conclusion, I would like to say that finding a bank where it is not difficult to get a loan at a low interest rate is possible only by approaching this issue with all responsibility. Remember: no financial institution will work at a loss, and a loan with a low interest rate does not mean “free” at all. So weigh all the pros and cons, study as many offers as possible. And you will definitely find the best percentage, which will become "low" just for you.