A loan with a low interest rate is a myth or a reality?

When lending to many people the question arises: "Where to find a loan with a low interest rate?" After all, no one wants to overpay. When choosing a bank, as well as a credit program, you should pay attention to some of the nuances.

The interest rate per se does not provide exhaustive information on the total cost of the loan, as in advertising, most likely, all fees, insurance and other payments have not been announced.

Credit in cash, a bank payment card, goods on credit - a dilemma for the borrower. The choice of the loan program depends on the interest. The most expensive type of loan is a cash loan. A low interest rate in this case will be balanced by additional commissions. Another thing - the goods on credit. This is the cheapest kind of consumer lending, because in this case the bank takes the goods as collateral. A loan to a bank card is also a rather interesting product. In most cases, the bank makes it possible to use credit facilities on preferential terms for a certain period (30-50 days). This is an opportunity to save on interest.

If you need a large amount of money for consumer needs, sometimes it is easier to use such a product as a consumer loan secured by property. In this case, there will be the lowest interest rate. The loan is issued mainly for a long time, which will significantly reduce the burden on the borrower.

Consider the frequently encountered "pitfalls" for borrowers.

Hidden commissions in the form of loan insurance

Such insurance - rather, the sale of additional banking products, rather than the need. After all, in general, the borrower is insured against an accident, and not from the non-return of funds.

Monthly commission for credit management

Even if the interest rate will be attractive enough - do not rush. Consult the manager for commissions. As a rule, banks, offering a loan with a low interest rate, ensure the profitability of the organization at the expense of a monthly commission. The amount of such a commission varies from one to two and a half percent of the original loan amount and is paid monthly.

Commission for the issue of credit

Typically, this kind of commission is used only when issuing a loan in cash. The cost of the commission depends on the terms of the loan and is measured as a percentage of the amount of the loan. You can also find a commission for the withdrawal of loan money through the cashier's bank or ATM.

Commission for early repayment

Sometimes you can find in the bank loan products commission for early repayment of the loan. This increases its cost to the borrower, and in this case, a loan with a low interest rate turns out to be much more expensive than a similar one in another bank with a higher interest rate.

Thus, we focused on those points that significantly affect the decision when obtaining consumer credit. This makes it possible to calculate all the costs, pros and cons of issuing a loan for a particular program and really get a loan with a low interest rate, rather than a huge baggage of overpayments.