How to Choose a Loan and Not Overpay: A Checklist
- Select the type of loan depending on what you plan to spend the money on. Targeted loans usually have lower interest rates.
- Determine the loan amount and term.
- Explore offers from different banks, compare interest rates and loan terms.
- Calculate how much you will pay monthly. The ratio of payments on all loans to your income should not exceed 50%.
- Calculate the overpayment on the loan, taking into account insurance. Banks often lower rates for purchasing a policy. This option may be more beneficial.
- Before signing the loan agreement, consider how you will repay the debt early.