Everyone wants a loan to get sanctioned at the lowest possible interest rate be it a personal or business loan. The banks these days provide a good deal on loans but they don’t tell you about their loan programs with low-interest rates. Taking a loan can be a nightmare with soaring rates of interest. So here are a few steps that can land you a loan for your business at low rates of interest.
- Make yourself aware of the lowest possible rates
You cannot negotiate with your bank on interest rates if you are unaware of how low your banks can go. So, to know that what you can do is
- Call your bank as an enquirer and ask for a bigger loan so that you know the lowest interest rates provided by them
- Visit the website of your bank and know about the loan programs they are offering.
By pretending to be a random enquirer, you’ll get to know that banks are offering lower interest rates to new customers or borrowers and thus you will be able to negotiate on a better level.
- Find out what convinces your bank to give lower interest rates.
Know your bank before you apply for a loan. Some of the points to convince your bank can be
- Bigger loan. Lower rates.
- Some lenders give you lower rate if you borrow under 80% of the property value
- Home loans have lower rates than investment loans
- Combine investment and home loans
- Know when you will pay higher interest rates
Again, know your bank. Know how it can lure you into taking up a loan with high-interest rates. Like,
- Having less than 80% of property value
- Not having a guarantor
- Not combining home and investment loans.
- Compare rates of different banks
An essential step to getting a loan at lower rate of interest is to know about different loan programs provided by various banks and compare them to know where you can get a better loan at low rates.
- Know how to negotiate with your bank
After figuring all the things out you must know a few things about the most important step towards your goal i.e. how to negotiate
- Apply to the right bank. This is an essential step towards getting a loan with low rates.
- If you are an existing borrower of the bank then you can tell them you are thinking of refinancing to save yourself from getting tricked into their schemes
- If you are still unable to negotiate then leave your bank and refinance for a new deal.
- Do a thorough study on bank loans and procedures.
You can be easily tricked into any deal which can be harmful to you financially in future. Make sure that you don’t fall into the trap and keep your eyes and mind open.