Life is like one big roller coaster ride, with its highs and lows, leaving the human kind exhausted and definitely not looking for bumpy ups and downs. The main force driving the workforce and the economy is money, and there are no two minds about it. At any given point of time, every person, no matter where he is, is thinking about how to earn or make that extra, to meet his demand, and that of his families. Demand is equal to supply only in theoretical terms. The demand and supply of funds is never equal in anybody's life. To fulfill this deficiency, loans are used or taken. A loan can be defined as the transfer of funds or monetary assets from the borrower to the lender. The opportunity cost of the lender for parting with the resource is termed as the interest. A loan can also be defined as a contract between two people, in which the borrower promises to repay the money taken form the lender along with the interest. Best loan has no fixed and regular definition. It can be explained in layman's terms, as a loan in which both the parties to the loan contract are happy with the terms of the deal and have a feeling of security. Therefore, what may seem to be a best loan for a borrower "x" may not be a best loan for borrower "y". Thus best loan varies form person to person and their needs.
Best loan can however be distinguished based of the following factors:
Rate of interest: the arte of interest should not be very high. There is a particular cut off rate of interest given by the apex governing body of the country and no lender is supposed to charge rates higher or lower then it. Hence rates are between the two boundary lines. A best loan will have a rate of interest which is closer to the lower boundary line. A borrower should shop for rate of interest thoroughly and get the best marginal rate that is easy on his pocket.
Processing time:
A best loan should take less time to get processed. Loans which have tons of formalities and consume a month's time just to get processed are tiring. Once the documents are furnished by the borrower, the lending authorities should investigate, verify and process the loan fast, so that the borrower gets the money in time.
Terms of repayment:
A best loan should have terms of repayment which is easy on the borrower. If the amount to be repaid in every installment is hefty, the borrower will be stressed, and at some point of time or the other he will have to borrow more to settle of the repayment. Thus, when a borrower is judging a loan he should keep in mind the repayment amount, and compare it with his incoming money sources.
These are the basic points which the borrower should keep in mind, so that the loan he chooses gets him the best. Best loan can be shopped for easily, only that it requires a little bit of homework. It is best to compare the deals of many lenders and also read various schemes and programs offered by them. A lot of information can be got form the internet and it is extremely helpful. One can also find lenders on the net who give attractive loan offers. The borrower must know what he wants and place his priorities right. Lenders too offer a lot so that the borrower is satisfied with the loan.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Where can I locate the blueprints for my house ...
By: Charles M. | 21-08-2008
Where can I locate the blueprints for my house build in 1907 in Denver, Colorado?
Why is that bad?
By: Angelina Boo | 21-08-2008
Why is it soo bad to burn our household batteries?
My Science prof. says that burning batteries damages the Earth, but to go home and look up why.
Can anyone help me? Maeby give me some links?
Rental Property Mortgage
By: Landlord | 21-08-2008
Is it still possible to get a mortgage to purchase rental property. I currently have 11 with 9 mortgaged. I heard Freddie Mac cut the number of investor loans to 4. The price to rent in my area is becoming favorable with all the bank foreclosures. Might be a good time to invest for the long-term. Also, has anyone had any success with bank's financing their own REO?
Looking for R &R in Key West Fl "BEACH"
By: ssnana1 | 21-08-2008
Looking for a beach house to rent for 5 nights 11-16-22-08 with private pool & hot tub Sleep 6-8 adults only
I do not have any sperm any more when my wife and ...
By: larry quillman | 21-08-2008
i do not have any sperm any more when my wife and i have sex
Looking for name of woman who died in a house fire ...
By: KeimM43 | 21-08-2008
Looking for name of woman who died in a house fire in or around New Orleans, 1964,1965, or possibly 1966. Woman was 65 years old.
Q&A Powered by:
Latest Finance Articles
Understanding Debt Consolidation Loans
By: Richard Greenwood | 07/10/2008
It can be all too easy to end up in debt and especially during the current times of financial uncertainty you may find yourself unable to make repayments. Consolidating your debt can make your debts easier to manage and lower your interest charges meaning you become debt free faster.
Credit Card Comparison
By: Richard Greenwood | 07/10/2008
Credit card offers are everywhere and all claim to out do each other. How do you cut through the marketing talk and understand the key features you need to compare to make an informed decision. Find out with this informative article on credit card comparison.
Shopping For Auto Insurance
By: Brenda Williams | 07/10/2008
When you get your license for the first time before you begin driving you need to get car insurance as it's mandatory to have car insurance while driving. Car insurance can be rather expensive, especially for new drivers which is why you'll need to ensure that you're getting the best...
Taking 100% Responsibility - the Prerequisite for Creating Money & Marriage Success
By: Leslie Cunningham | 07/10/2008
It's a simple concept, to refrain from blaming and complaining, and yet it's a challenge to change a habit, especially one that everyone else has. Like sticking to your diet, when everyone else around you is enjoying chocolate cake. Keep reading and you'll find out how this relates to your marriage and finances. Then I'll share some action steps to help you become 100% responsible for your life.
Retirement Income Investing and Your Portfolio
By: Steve Selengut | 07/10/2008
Brokerage firm monthly statements are designed to promote either fear or greed, depending on the current market environment. Nowhere on your statement can you find numbers that report your net investment, your total working capital, or your true asset allocation. Current and projected income numbers are given little attention
Buy to Let Investors Get a Boost
By: Parmdeep Vadesha | 06/10/2008
Buy to let UK investors are in a prime position to take advantage of a new government plan to spur property market activity. The scheme aims to permit property buyers to buy properties worth up to
How to Buy a Repossessed Property for Below Market Value
By: Parmdeep Vadesha | 06/10/2008
Buying a repossessed property is what matters for investors who are keen on reaping high profits. But even with the advantages it poses, there are certain aspects you need to be aware of before you start on the task of acquiring your next property cheaply.
Brits Should Ensure They Have the Cheapest Energy Supplier
By: Abbi Rouse | 06/10/2008
With energy prices escalating steadily, consumers could knock considerable amounts off their utility bills by switching from their areas default supplier.
More from Micheal Coley
Bosch Appliances | Toronto Warehouse For Home Appliances
By: Micheal Coley | 09/02/2008 | Home Improvement
In our traditional homes, we can see the housewife cleaning all the dishes, knives, spoons, cups, and saucers keeping cleanliness and hygiene in mind after every meal.
Most of the people now a day opt to become corporate and are now busy going to office and then coming back to home....
Bosch Appliances | The Appliances Place
By: Micheal Coley | 09/02/2008 | Home Improvement
In our traditional homes, we can see the housewife cleaning all the dishes, knives, spoons, cups, and saucers keeping cleanliness and hygiene in mind after every meal.
Most of the people now a day opt to become corporate and are now busy going to office and then coming back to home....
Mortgage Loan For You
By: Micheal Coley | 14/12/2007 | Finance
Mortgage loan is the money that the lender gives to the borrower; sometimes these loans need a guarantee. A mortgage is what one gets as a certification once the asset is used as a pledge for security. There were times when availing mortgage loan was very difficult but with the...
Homeowner Loans For You
By: Micheal Coley | 06/12/2007 | Finance
Whenever we are in need of money we look out for different loans. The market is full of various kinds of loan but the most preferred loan is secured loan. Homeowner loan is a secured type of loan i.e. to avail homeowner loan one has to keep his home as...
How A Home Loan Can Help You
By: Micheal Coley | 03/12/2007 | Finance
Home is not something that one purchases everyday. It is everyone's dream to own a house, buying a home requires huge capital and good planning, when you decide to purchase a house you do not feel like compromising on anything but your resources are limited. Now with the home loan...
Get A Home Improvement Loan
By: Micheal Coley | 27/11/2007 | Finance
Your home is like a world to you. It is a place where you live a peaceful life with your loved ones. We may travel to the best of places, live in the finest hotels but the place that gives the most relaxed feeling is your home. We all want...
Learn About The Problem Remortgage
By: Micheal Coley | 02/11/2007 | Finance
When people have a problem, remortgage is often a popular solution. When you apply for a remortgage, you should try to get the best remortgage rates possible. Before discussing about the best remortgage you should know what remortgage is. It is nothing but negotiating a deal on your existing mortgage....
All About The Personal Loan
By: Micheal Coley | 31/10/2007 | Finance
The market is full of lenders ready to give personal loans at the most realistic rate of interest and simple terms. Personal loan can be used for anything and everything such as vacation, renovation of house, extension of house, medical purposes, weddings and so on. The process of getting personal...
Finance 
