How to find a Perfect Loan Lender

Loan lenders are people who independently or as part of an institution lend money to one or more individuals, with most probably a high rate of interest. Some are honest people while some are crooks. They can charge you a very high APR (Annual percentage rate).The purpose of the loan can be varied. You can apply for a construction loan, Car loan, Auto loan, Home equity loan etc.

Factors from the outlook of the Lenders

  • You should have a regular income. Only then you will be able to repay the amount in monthly installments.
  • Some lenders appoint brokers though which they can communicate with a debtor.
  • Some lenders insist on a middle man who can introduce the debtor.
  • The debtor should be doing quite a shopping on money lenders online & also offline for the best money lenders.
  • Collateral security of the debtor.

Factors that influence the Debtor

  • APR: – It is your annual percentage rate. If your annual percentage is high, you have to pay high interest. Two types 1) nominal APR:-with simple interest rate. 2) Effective APR: – compound interest rate + processing fees.
  • Processing fees: – In some cases you have to pay processing fees in addition to the interest rates.
  • Experience of the lender: – A lender must possess at least 2 yrs experience in money lending.
  • Repayment term:-It is always influenced by the amount taken by the debtor. If the amount is high, go for a high EMI. Then the amount can be repaid without much hassle.
  • Method of payment: – The amount is automatically cut off from the account of the debtor, as now most of the money lending happens online. By hand also occurs rarely in some cases.

Different types of Loans

1) Construction Loans: – Loans that are used for construction of houses or construction of offices are construction loans.

2) Home equity Loans: – Loans that are needed for renovation of houses or office are Home equity loans. These loans are also taken for undergoing any professional course.

3) Auto loans: – If you are interested in purchase any vehicle, heavy/light you can opt for this.

4) Car loans: – you can buy a new brand car with the help of car loan.

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