There’s no denying that some people find themselves in trouble when they applied for a personal loan with any bank or nonbank lending firm in Australia simply because they rushed into the application process without due diligence. Comprar Ropa Interior Calvin Klein Chances are their application gets rejected because they did not check the necessary requirements that would help increase the approval of their loan application. Slip Calvin Klein Baratos Or, if they get approved by some stroke of luck, they would later on find themselves scratching their heads because of the “unknown” penalties or fees they are charged by the lender or the bank for non-fulfillment of their repayment obligations.
While taking out a personal loan is a common and not out-of-the-ordinary undertaking in Australia or even in other countries around the globe, some people sometimes forget that along with a loan decision is the awareness and consciousness of the responsibilities required of the borrower to fulfill to the lender.
Hence, due diligence is important so that when they apply for a personal loan, they know the restrictions, inclusions and other important terms and conditions that come along with the approved loan.
Some of the usual problems faced by borrowers who did not take enough time to study or research about personal loans include:
The Difference Between Fixed Interest and Variable Interest Rate
A borrower may agree to a fixed interest rate without fully understanding the principle behind it Therefore, because they didn’t really know what a fixed interest rate means, they may end up confronting their loan officer demanding for a lower interest rate same as the prevailing rate in the market.
On the other hand, if he opted to have a loan with a variable interest rate, he may be surprised when his next repayment amount becomes higher than the previous because the interest rate in the market has gone up.
The Chargeable Fees When Repaying Loan Early
A borrower may also not know that in the event that he decides to repay the remaining loan balance earlier than the agreed loan term, a corresponding ERA (early repayment adjustment), break or economic costs and administration fees will be charged to the borrower. You can refer to this article for additional information about early loan repayments.
They may not also know that there are certain limits on the lump sum payments they can make in a year that will not be charged with ERA or break or economic costs. Calvin Klein Underwear Mujer If you exceed the specified limit on the lump sum payment amount, you will be charged for the loss incurred by the lender when you repay the loan earlier than schedule.
The Chargeable Fees When Repayment Due Dates Are Missed Out
If a borrower misses out on a repayment due date, there’s a corresponding penalty or default fee alongside some arrears management fees that the borrower has to shoulder for non-payment. Boxer Calvin Klein Baratos They may not also know that by notifying the bank or the lender that they are in financial difficulty, the bank or lender may offer assistance to help fix the situation and get back on track in the repayment path.
Losing Collateral When in Default
Some borrowers may not understand the risk of losing the collateral they have pledged as security to the loan, if and when they fail to fulfill their obligation to repay the borrowed money. The bank or lender may have explained this but the borrower can choose to ignore it because they didn’t seriously think it can happen.
Having approval for the loan is one thing. Fulfilling the obligations that go with an approved loan is another.