your personal loan

Negotiating a good deal for your personal loan

Author Name : Harsh Roongta
Tuesday,14th August 2007

• Remember that all personal loan interest rates are negotiable. You can always play off one bank against the other to some extent. • Once you have reached the limit of negotiation on interest rates, you can negotiate on other charges, especially upfront fees. • Bundle your loan request with the loan requirements of your friends and colleagues and thus offer a larger loan portfolio to the bank. • You can also try the ‘month-end trick’ by negotiating till the 23rd or 24th of the month: Every bank has monthly loan targets for its staff and as the month-end nears, the bank offers slightly better terms to enable them to fulfill targets. However, this is unlikely to work where the income documentation is not absolutely clear. • Give full details of your existing borrowings (including any credit card borrowings) and show good repayment track record to all lenders: Remember that most banks will check with the credit bureau anyway to find out about your existing borrowings and repayment track record. So, making full disclosure of your existing borrowings makes sense and can actually be used to reduce rates further.

Avoiding Common Problems Faced By Personal Loan Customers

Author Name : Harsh Roongta
Tuesday,14th August 2007

Here are some common problems faced by personal loan customers, and possible ways to avoid them.

Problem: Delay in disbursement beyond the promised date.
Solution: Budget for at least a week’s delay in disbursement, even after you have handed over all papers.

Problem: Non-disbur

sement despite approval of loan.
Solution: Just move your loan to another bank

Problem: Delay in handing over cheque disbursement even though interest meter starts from date of cheque rather than the date on which the cheque is handed over.

Solution: Open an account with the bank early enough and ask for credit of the loan proceeds to that account; as part of the loan application itself. This will ensure that the bank cannot charge interest for any delay in handing over the cheque.

However, this is unlikely to work where the income documentation is not absolutely clear. • Give full details of your existing borrowings (including any credit card borrowings) and show good repayment track record to all lenders: Remember that most banks will check with the credit bureau anyway to find out about your existing borrowings and repayment track record. So, making full disclosure of your existing borrowings makes sense and can actually be used to reduce rates further.