How to choose a bank loan product in case you feel the need for credit facilities? This question seems simple but, nevertheless, is often asked potential borrowers. First of all, you should decide so, what are you going to spend borrowed money. This may be buying a home, car repairs in the apartment, pay the costs of education and so on. The fact that banks have different credit offers based on where the borrower is going to spend borrowed money. On this basis, the bank evaluates and offers credit terms. For example, let's consider a situation in which you want to certain amount of money to make repairs in the apartment and an additional portion of funds for any purposes (can be anything). You go to the bank and learn about the various lending programs, such as mortgage lending (Mortgages, auto loans), loans to individual entrepreneurs, loans for education, non-earmarked loans.
Returning to our example, we ask the following question – "Under what kind of offer comes our potential application?" Logic suggests that this will be untied loan. Thus, we are simply saying that a loan officer, what we want to spend the loan funds, and obtain a certain number of proposals for consideration. Everything is quite simple. Further need to examine directly the conditions of the loan advanced by the bank. We draw attention to the amount we needed, because the different banking credit products provided to its maximum value funds.
Further relying on the logic, we choose the proposal with the lowest cost of borrowed money. Cost, of course, is determined by interest rates and other charges. This highlights that, as generally the same for most situations. However, in each case, the potential borrower should carefully read the terms of the contract, to avoid unwanted problems in the future. If you're unsure of something or there is any uncertainty, we do not hurry with the signing of the contract. Consult with knowledgeable people, or ask a question on forums devoted to lending.