what should i know and criteria i should consider when choosing financial institution for taking loan?

Answer 1

Usually all financial institutions offer a variety of loan packages with attractive interest rates and so on. what you should always do is, on you cut off list first choice should be, stick to the largest financial institutes. This is true, these boys they have enough money to make the country float they will offer better loans with much better repayment schemes.
Another thing you may notice, their interest payment on savings are low, which is a good sign for borrower as they lend at lower interest.
no matter which institute you may opt to use, the interest rates will fluctuate time to time, you can pose as a question to the institute you visit as for how long the interest rate will be fixed? and thereafter what % will be increased or decreased and what will be the effect on your loan?
One more thing, if the institute is offering free gifts and various bag of goodies, they seem to have problems getting clients on bottom line details which clients look for, so they offer gifts, you are in trouble taking loan. Their rates may sound nice and low at beginning, but they will increase even without informing and their compounding and calculating you remaining balance will be very unhealthy for you.
Good luck!

Answer 2

When I was shopping for a vehicle loan recently, two important criteria for me were a low interest rate and also the ability to prepay the loan without any penalty. I would say check out your interest rate, payment schedule, and read carefully for any unusual demands. One other valuable item for me, if you also have the luxury, I chose a financial institution who was willing to do business with me. I enjoyed working with the people at the bank, and I feel I can work with them on other loans and accounts.

Answer 3

To save yourself time: Newspapers frequently publish a listing of financial institutions and their various rates for loans, savings, checking, et cetera.

To save yourself money, pick the bank with the lowest rate and begin there. If you have 2 or more offering the same rate, then pick the one with the closest branch.

For example, in last week's paper Discovery Bank was offering unsecured lines of credit at 9.75% and citibank was offering the same for 17%., and Pacific Trust was offering at 11.95%

Your credit rating will also play a part