Before withdrawing a loan, it is appropriate to compare the products offered on the market. As with every single thing here, checking for possible analogs is a very important point. This can save not only unnecessary costs but also multiple headaches afterward. There are plenty of banks and non-banking institutions on the market that have quite palatable offers at first glance.
However, favorable terms and promotional interest rates may contain clauses and appreciation that make the loan extremely difficult and unpleasant. Comparison of the loans in Bulgaria can be made both on the specialized sites and by visiting some of the sites offering generic parameters of most credit products. No matter if it is a bank loan or a non-bank loan, comparing offers can find the best terms for any consumer. In the modern world of diversity, you do not have to agree with the first that is offered to you. There are always options!
Most common parameters that users want to know before applying?
When deciding to look for a home purchase loan, home repair, car, shopping or urgent need for money to spend time on a paycheck – look at some of the basic parameters. You do not have to borrow from the most advertised site or apply to the same fast loan companies only. Check out the other options. There are plenty of loan comparison sites in Bulgaria and this seriously opens up the options for selecting the best option for every consumer.
Interest. Interest is a key factor in determining the appreciation of the loan. As with fast and bank loans, interest plays an important role in determining the final price of a product. For bank loans, it is much lower than for fast loans, but the repayment time for the former can be up to 20 years, while for the latter it is an average of about a month.
Promotional conditions. Many companies give special conditions to their customers during a certain promotional period. For example, there are offers that give an interest-free period, a fixed term with a low-interest rate, a fixed interest rate, additional gifts in the form of shopping vouchers, etc. When taking out a loan with such special conditions, it is very important to know when they expire and what their term is. However, if the interest rate rises or there is a grace period then the contribution will increase and this should be planned in the family budget.
Insurance. Most bank loans, especially long-term ones, are covered by life insurance. It is usually included in the price of the loan and goes with the down payment. However, when making insurance, it must be clear in advance its coverage and the options in which it is valid. Is there an option to defer or cover part of the loan in the event of unemployment and, in tragic circumstances, to the disadvantage of the borrower? Although particularly unpleasant, this point needs to be clarified.
Monthly installment. The amount of the monthly installment of each loan, especially the long-term ones, is a regular expense, which becomes a monthly part of the family budget. Once the loan is already a fact, the remaining costs must be planned and adjusted accordingly. Before withdrawing a particular loan, it is imperative that you see what your options are for the maximum amount of the monthly payment. You also have additional circumstances in mind, such as having children or planning to have one, the partner also has a loan, you are not sure of your job, you do not have a property that could provide you with additional stability.
Term of repayment
According to what the possibilities for the monthly contribution depend and what the term will be. If you have concerns about what exactly a monthly payment can handle, negotiate a longer-term.
Additional terms and fees. When trying to compare loans in Bulgaria, take note of the additional conditions that may exist. The fees for utilization of the loan, the use of additional services, which are often required by the banks to be included in the package, such as payment of utility bills, the opening of the bank account itself, etc. Fees for applying and reviewing documents are still in place, so it’s a good idea to pay attention to them as well. Although in many cases these fees seem negligibly small, in the face of the overall cost increase, they end up being not so small amounts.
Documents required. If you are applying for a loan from a non-bank institution, you may only be asked for your identity card or your personal details. However, the situation is slightly different from banking ones. In most cases, institutions require several basic documents such as a note guaranteeing a permanent, regular income, identity document, often for large sums, and a guarantor. Each bank has its own set of documents that borrowers should collect and submit. On the basis of these, a contribution calculation is usually made and the repayment options and the maximum amount for each individual client are estimated.
Security. Non-bank institutions usually do not want loan collateral. If they are in doubt about the repayment options, the creditors may request that a guarantor be provided to guarantee the claimant. With bank loans, it is most often required to transfer a paycheck to the bank so that the funds to cover the installments can be collected as soon as the account is received. A comparison of loans in Bulgaria on-demand or not on the guarantor cannot be done. The need for an additional guarantor is determined by the individual ability of each client to repay the loan. Therefore, this parameter cannot be analyzed for bids.
Conditions for delay
Delaying one installment is an unpleasant moment for both the bank and the borrower. However, delaying a longer period and making more contributions is something very serious. Whenever you are unable to make the monthly payments, you must proceed promptly and responsibly. It is easiest to contact the bank and alert or renegotiate the terms or contributions. Take the problem seriously and responsibly. The default conditions are in most cases the same and most institutions are open to negotiating with clients. This applies to both fast loans and bank loans.
What will be the cost? When comparing loans in Bulgaria, look at the basic parameters, but also see what the amount below shows at the end. The difference between the final amount and the amount you will receive is the real appreciation of the loan and the cost of the loan itself.