Common Problems of Business Loan
1.Before applying for a private loan, in addition to interest rates, what factors should I consider?
In addition to considering the level of interest rates, you should also consider the following factors:
Read the terms and conditions carefully to see if there are other fees or hidden fees;
Whether the application method is simple, the approval time, the bank branch network and the application channel are convenient.
2. Does the loan represent a problem with my financial management?
Not necessarily. Saving on a monthly basis is of course a good way to buy your favorite items or fulfill other wishes. The only thing you have to pay is time-you need to wait until you have enough money to make your wish come true. In addition, you may want to consider inflation factors, such as purchasing a vehicle. Sometimes you may miss a great investment opportunity or the sale season. What if extra cash is needed in an emergency? Of course, some people may need debt restructuring or borrowing because of the increasing debts that lead to fiscal runaway.
In fact, loans are suitable for many situations. Various types of loans are more suitable for different needs. The question is how to find the type of loan that best suits your needs.
3. How much should I borrow?
The loan amount should not exceed your actual needs, because business loans are not purely material desires. The repayment amount should not exceed 30% of the monthly income (except for mortgage loans, which can account for up to 50% of the monthly income). However, you must carefully consider other expenses and ensure that you can afford the monthly repayment and will not cause a shortage of funds.
4. What repayment period should I choose?
Since the repayment period will directly affect the monthly contribution, you should strike a balance between the loan amount and the monthly contribution you can pay to choose a repayment period that suits you. After deducting the repayment amount, you must have sufficient living expenses, and preferably a small amount of savings. In most cases, the repayment period should not be too long.
5. In addition to the fixed monthly repayment, are there any other repayment methods?
Yes. If you have a fixed monthly income, of course, it is easier to arrange monthly repayment and income and expenditure budget. However, if you do not have a stable income, it is difficult to book a fixed monthly repayment amount; or you may only need a backup cash. If so, you can choose flexible loan products, such as revolving loans or overdrafts.
6. What is the difference between installment loan, revolving loan and overdraft?
Instalment loans are repaid in fixed amounts on a monthly budget based on the loan amount. The calculation of interest rate depends on the loan amount and repayment period selected by the customer.
The revolving loan amount or overdraft amount will be deposited into your loan account or comprehensive current account, which can be used at any time. Interest is calculated on a daily basis only on the loan amount or overdraft amount that has been used. The main difference between the two is the withdrawal method. Revolving loans require the use of ATM cards or credit cards to withdraw cash from ATMs or shop with merchants for "ease of doing business"; overdrafts are mainly through the use of the transaction amount of the integrated current account.
