Surprising as it may seem, there is a lot of room for bargaining and negotiation in the terms and conditions being offered by banks for personal loans. Armed with this information we can easily negotiate wonderful deals on personal loans if we put use our inherent bargaining skills for which we Indians are famous.
One can easily wriggle out better features and waivers on charges from the bank authorities to get a personal loan that is cheaper in real terms.
To be well informed about the current trends is one of the most potent weapons while bargaining with financers for a personal loan. For this, the customer has to update himself on the prevailing practices, eligibility criteria, interest rates, tenures and special offers that are available in the market.
This puts the lender on back foot when negotiating and prevents him from feeding incorrect information to the customer. By understanding how the interest rates are calculated the customer cannot be lured into the trap of flat rates as against reducing balance interest rate loans.
When negotiation with a financer, make sure that you have applied to other financers too and have their details in hand. The lender often feels insecure when the customer has more options and is then likely to give in to some of your demands if he appreciates the fact that the customer may go to others unless entertained. Hiring certified brokers or agent to negotiate on your behalf can also be contemplated if does not cost you a fortune in the process.
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One the major influencing factor for the financer to accept your requests is your credit rating of simply put history of financial dealings and repayments. A customer with a great credit score is always preferable to the lender who can now make some concessions in order to retain the customer with himself. Some of easiest means of improving credit ratings are:
· Timely payment of all bills and dues.
· Avoiding frequent job changes in short spans.
· Not applying for too many loans.
· Not using up to the limit of the credit card.
· Paying off outstanding debts which had been defaulted at some point of time.
The stringer and efficient the paperwork of a customer more preferred he will be to the financing institution and therefore more likely to avail special concessions. The customer must ensure that all the required paperwork has been prepared correctly as per the financer’s norms and ready for submission.
There are two aspects to the timing of a personal loan. Firstly as a policy some banks offer special products during festival seasons. One must wait for such offers if possible. The other aspect is that most banks and finance institutions have their own internal targets and will not mind going an extra mile to achieve those by giving some concessions to the customer.
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