In banking, there are so many services provided to its customers. Whether in the form of savings deposits, time deposits and demand deposits or loans for purchasing homes, vehicles or other loans purposes.
Going to the bank for loans is one solution in making a long-term plan, because not everyone has sufficient funds to purchase an item or items in cash. Especially if the price is quite expensive like to purchase homes, motor vehicles (cars, motorcycles) or for the cost of education.
If you want to buy a house or car, things to be noted is how to buy it; with cash or credit. We can buy in cash if we have enough money or it is equal to the desired price. But in reality, most people do not have enough money to buy in cash. Finally it can be conducted with credit.
Buying on credit ease some burdens for the people with lower economy rate or middle income. However, the bank generally gives the strict requirements for prospective borrower (customer). One of the common conditions is the borrower must have a minimum cash downpayment (typically 20% – 30%) of the goods to be purchased. Then the bank will provide loans amounting to balance of the price of these goods (70% – 80%).
So even for taking a credit you’ll need to get some savings at least 20%-30% of the purchase price. Then aside from this upfront cash downpayment, you need to consider the monthly repayment. Remember, this debt must be repaid each month with accompanied interest within a repayment period agreed by the client (the creditor) and the bank.
If you will take to the bank loan, choose a loan to suit our purposes. For example to buy a house then we took home purchase loans, commonly called as home mortgage loan. Or if you want to buy a vehicle, you get vehicles purchase loan.
Tips for getting bank loans:
- Choose a bank that has experienced and has special expertise in the field of handling credit because it will help us if there are problems in the future.
- Ask the people who have taken loans to the bank. What is the feedback or suggestions from people who have taken loans to the bank.
- Find lots of information via the Internet or newspapers and magazines.
- Ask for clear and detailed information to the bank customer service about the credit you will take.
- Most importantly, think twice whether you really need the loan, in order to avoid problems later on.