Be Prepared and Get that Loan!
Before you go to a bank or a finance broker for a loan, you can prepare yourself for the questions the lender will ask you. You can also prepare your own list of questions to ask them. By educating yourself in all areas of getting a loan, you can make informed decisions about what type of finance is best suited to your needs. Remember, at the end of the day, it is YOU who is obligated to pay back the loan amount, so you want to make sure you have made the best decision.
When you are applying for a loan, a credit provider may ask you to provide them with the following personal information:
- Evidence of your income and your employment details (bring a pay slip with you)
- Details of your assets (things you own such as a car, furniture, boat) and liabilities (other loans or credit cards you may owe money to)
- Statements of savings you may have
- Details of your monthly expenses (this is your "Budget Plan")
- Your identification including: birth certificate and driver’s license
And of course – what do you want the loan for?
We've prepared a few questions you may wish to consider asking the lender:
1. What is the interest rate? (Interest is the amount of money that the credit provider charges you, to lend you the money)
2. Is the interest fixed (won't change over the course of the loan) or variable (may change)?
3. What are the minimum repayments?
4. What is the term of the loan (length of time of the loan contract)?
5. How much are the loan establishment fees? What other fees will you have to pay for?
6. What is the total interest payable on the loan?
7. Are there any penalties for terminating (ending) your loan contract early and paying it out? If yes how much?
Where is the best place to get a loan?
Things change too quickly to say which is best, what is best one day may not be the next. Contact at least 3 to 4 different financial institutions and compare what they offer.
You can check the InfoChoice website at: http://www.infochoice.com.au to compare the best loans in your area!
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