Demystifying Personal Loans.
Navigating through Personal Loan terms can be daunting but understanding them is crucial for leveraging the loan benefits fully.
Here is a quick rundown of fundamental loan terms every smart borrower should know:
1. Cooling-off period
A time frame allowing you to reconsider your loan agreement post-acceptance, without penalties.
2. Early settlement charges
Fees applied if you decide to pay off your loan early. It compensates for the interest the bank will miss out on.
3. Salary transfer loan
A loan type requiring you to transfer your monthly salary directly to the lending bank as a repayment security measure.
4. Late payment charges
Additional fees imposed when your loan repayment is overdue – stay punctual to avoid these.
5. Processing charges
The cost associated with the administration and handling of your loan application.
Understanding these terms will ensure you are equipped to make informed decisions throughout the Personal Loan cycle.