If you are successful in finding a personal loan offer so far, there are only a few more things you need to do. Many of these factors can make or break a seemingly good deal.
Read through the terms of the loan and be on the lookout for:
-- check to see if you will be charged a penalty if you make your prepayments early. Generally, most lenders do not charge prepayment or exit fees.
-- some lenders will require that payments are automatically withdrawn from your account. If such is the case, always ensure you get low balance alerts from your bank. You will avoid overdraft charges.
Total loan charges
-- you do not want surprise charges popping up after you have signed the loan papers. Check to see that the total cost of the loan is disclosed and accounted for in the percentage rate. Verify these details using a loan calculator.
Other friendly aspects of the loan that you need to check are:
The flexibility of repayments
-- with some lenders, you will be allowed to choose your repayment dates. They may forgive late payments (to an extent) and may allow you to skip payments when in hardships.
Direct deposit to creditors
-- if you are taking out a personal loan to pay another creditor, it is essential that the funds are paid directly. This will be beneficial to you as loans will not pile up.