2 loans you should close quickly

There are a variety of loans available in the market. You can choose from an ample number of options to suit your needs. But do you know that every loan has its perks? Do you know the terms and conditions of each loan? How to repay them? Does repay them before time will get you some benefits?

A lot of people do not understand what they need as far as the loan goes and take simple options that are offered by their banks or relationship managers. While the procedure follows they are not given proper insights into the loan they opt for and later land up in a financial mess. For example, there are some loans like, home loan and education loan which give you tax benefits and you can also go for longer tenure with these loans, but in cases of other loans and financial products like credit cards, you will not have flexible options as compared to others.

You will have to choose wisely with proper research while going for a loan which would not only help you while in emergency situations but also will help you to stay financially secure in long financial ruin. Repayment is the toughest thing ever, you take a loan and while opting for the same you have plans on how you will try to foreclose it. Eventually, you are stuck with debts and all your efforts to foreclose your loan goes for a toss. We will help you, with which loans you must try to close quickly to achieve financial harmony,

Car loans There are a variety of car loans available in the market, which you can go for according to your car preference and the financial options attached to it. These days there are many car companies who provide loans themselves for smooth car buying process and also to achieve their own sales target, that to at attractive interest rates. What we do not understand is that a car loan can be the worst nightmare.

You have made up your mind and buy your dream car which costs you around 20 lakh rupees on the road (Inclusive taxes, registration, and insurance) and the bank has funded you 90% of the on-road car value i.e. 18 Lakh rupees with the interest rate of 11% (10-13% Being standard interest rate according to current market) at 5 years of tenure. As we all know car is a depreciating asset and due to low demand for used cars because of attractive offers from various car dealerships the depreciating value of cars has increased to at least 20%. This means you are paying a lot of interest i.e. almost 2 lakh rupees for a depreciating asset.

Personal loans This type of loan is the easiest to go for. Minimum documentation, fast processing also in some cases the personal loan is pre-approved, the person can get the money credited in the bank account within minutes provided you cibil score is great.

You can also get a personal loan for a low cibil score but the interest rates will be higher than market standards. A personal loan can be a savior when in desperate need of money or in emergency situations. As mentioned earlier a personal loan can help you when in desperate need, but the loan can be complicated if not taken seriously. As we all know that the personal loan interest rates are relatively higher than other loans, also the penalties and other charges are also high, this will create a great impact on your cibil score and chances of you getting any type of loan or financial product in future.

To avoid such mishaps of not making the EMI payment on time, try to pre-close the loan and get an early financial relief. Last but not the least, there are many other good loan options available in the market like, mortgage loan, etc. which will help you in your emergency situations, so explore your options and go for the best which will help you and your family be in financial peace.

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