When looking for the best cash loan, it is worth comparing several offers to be able to choose the one that will be the best and the most advantageous solution for us. We decide on a loan of $ 4,000 with a loan term of 24 months. What is worth noting the installments are equal. The borrower’s monthly income reaches nearly $ 5,000 a month and comes from an employment contract of indefinite duration. This is an internal customer, i.e. one who has a personal account at the bank and has previously used the credit products that the bank offers.
Checking on the Internet what loan
With such parameters would be the best solution, the first place was the offer of cash loan from Bank Zachodni WBK. The total amount we will repay at the end will be $ 4,435. The bank will distribute us a loan into 24 installments of $ 186. The nominal interest rate is 4.99%, and the commission for granting the loan is 5%. The annual Actual Interest Rate in this case is 15.3%. The second best offer was a tailor-made loan at Ruffsen Bank. The total amount to be repaid at the end is almost $ 4,600. Installments will be $ 191 each. The nominal interest rate on the loan is 8.49%, and the commission for granting it is 5%. The APRC remains at 14.25%. The third place is occupied by the offer prepared by Bank Bekao. The amount we will have to pay will be almost $ 4,600. Installments, as in Raiffeisen Polbank, will be $ 191 each. The nominal interest rate is 8.99%, and the commission for granting us a loan is equal to 4%. The APRC for this loan is 10.61%. These are the three best cash loan offers for $ 4,000, with a loan term of two years.
Choosing from among these three cash loan offers
we will choose the one which took first place. What to do when there are many offers? How to sort them? In fact, the most important parameter for the future borrower is not the nominal interest rate per year, but the APRC. The Annual Real Interest Rate is the total cost of our loan and everyone should pay special attention to it when choosing the perfect commitment for them. The APRC includes not only nominal interest per year, but also the amount of commission that the bank will charge us for granting us a loan as well as a preparation fee and all other costs that are associated with the activation of the liability.