Choose your personal loan wisely

Secured Loan or Unsecured Loan – Which is the best?

Secured loans are those loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral, and a lien is placed on such item.Advantages1. Offer lower rates2. Higher borrowing limits3. Longer repayment terms than unsecured loans.

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In unsecured loan, Lenders take more of a risk by making such a loan, with no property or assets to recover in case of default, which is why the interest rates are considerably higher. The lender believes that you can repay the loan on the basis of your financial resources. You will be judged based on the five (5) C's of credit -- character, capacity, capital, collateral, and conditions – these are all criteria used to assess a borrower's creditworthiness.

Learn what is floating or fixed rates?

Better to clear on this pointIt is always thought that a fixed interest rate means same rate throughout the  tenure but sometimes it is adjustable after a certain period of time, provided which either your EMI amount or the loan tenure can increase. On the other handIf you are opting for the floating rate loan, make sure that your lender’s floating rate has come down at least over the past two years.

Always Compare Loan Providers

Lenders can be compared under following points Processing fees EMI, Interest Rate and Tenure Pre-closure Charges Loan Amount

Other Points to be kept in mind while availing home loan

Use the debt calculator to work out what the loan will cost you each month and in total.

Check your credit score - Having a good credit score puts you in a position to attract the best deal on your home loan.

Finalize Your Property & Then Go For A Lender Know Your Home Loan Eligibility Status

Final Step

Make sure you have understood all their terms and conditions correctly. Ask for as much information as you need or consult with Paisabazaar.com