A personal or cash loan is very dangerous in many ways, so before you apply always think twice. Here are some common yet so unnoticed traps which you avoid while taking a loan. Personal or cash loans are very simple to look at but there are more whirling areas in this because money lenders are waiting to collect more money from you so always be careful to take loans.
Loans are temptations but banks or money lenders are eagerly waiting to grant loans for you and they will be tempted and show various opportunities as well as schemes to take a higher amount of loans than you actually decided. And the lender of personal loan will tell you to take a huge amount of loan which you can pay for many years as your choice and they also tell you that monthly repayments are also small. But the longer time they will receive money from you they will earn more in the course of time, so never be foolish with their sweet words.
If you choose longer time period, you have to pay a huge amount of money in those years so avoid this trap of a lender and choose small time period for a personal loan. And short-term loans with small interest rate will save your money.
Every bank and institutions which offer loans has fixed interest rate, but if you want discount, then look for the opportunities when they cut their offer and lower interest rate for promotional purposes. Annual percentage rate can be varied from the total cost including interest and money lenders often manipulate this APR and this will help you to calculate the percentage of interest. Once you can sure about the monthly interest rate, then you can decide the amount what you take as a loan and can afford. There are also many organizations which give interesting rate and sometimes lower than the banks and they also not take extra charge if you can pay the rest amount early than the contractual period. But it is hard to find those interest rates and organizations and you have to read every single point of terms and conditions before you take the loan.
Always calculate the total cost before you apply for the loan because there are also other charges such as origination fees, so when you take loan notice that it include the origination fees. If you have good transaction history and credit points, then you can easily get the loan amount. However, many lenders also offer loans to borrowers who have a bad credit history.