Before choosing a loan, decide whether there really is a need to borrow money. A rational approach is when the amount taken, being invested in a certain direction, will be able to generate additional income. The monthly installment will be paid from it. However, this business approach is often obvious to many entrepreneurs. If you are a private person, it will be easier to decide on a loan.
Instructions
Step 1
First of all, try to justify the rational need for a loan, on the one hand. On the other hand, calculate whether the future monthly payment is in line with the financial burden that your personal budget can bear.
Step 2
After you are convinced of the need to apply for a loan, you should choose a loan based on the associated monetary costs that you will incur during its repayment. To do this, calculate all payments and all other expenses (commissions for maintaining an account, for depositing money through a bank cash desk, etc.). You can calculate payments yourself, knowing the appropriate payment formula, or using credit calculators. Determine for yourself the amount of money that you could easily make monthly payments. Also go to the banks for a consultation and get an approximate printout of the loan repayment schedule.
Step 3
Add all the monthly payments together and calculate the actual cash overpayment. The amount you pay on top of the loan you borrowed may differ from bank to bank. To choose a loan, compare this amount across the payment schedules of the banks you have visited.
Step 4
When applying for a loan, you should think not only about how not to overpay, but also about options for early repayment. Before you finally decide and choose a loan, ask a bank consultant for the terms of early repayment. Is there a moratorium on cancellation, a commission for early payment, is there a recalculation of interest, etc.
