The loan agreement of both secured and unsecured personal loans contain the following details.
1. The Loans Tenure- Loan tenure is the loan period or the repayment period during which the borrower is required to repay the loan as equated monthly installments (EMI). The loan tenure for secured loans is longer than unsecured personal loans.
2. Details about the termination of the loans- This contains clauses regarding what charges and penalties(if any) will be borrower be required to pay to the lender if he decides to repay the loan before its maturity date.
3. The true cost of the loan- The loan agreement contains all vital details like the nominal interest rate, the brokerage charges, the APR, the annual charges and others. This helps the borrower to know that how much he will actually be paying for the loan.
The borrower should read each and every detail mentioned in the loan agreement properly before finalizing the secured or an unsecured personal loan. Any objectionable clause should be sorted out beforehand with the help of a mutual decision taken by the lender and the borrower.
Especially in the case of secured loans, the borrower should thoroughly check the loan agreement as the home of the borrower is at risk. Even in the case of unsecured loans, borrower should take every possible precaution to prevent himself from falling in to bad loan deals.
About The Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. She has done masters in Business Administration and is currently assisting online-unsecured-loans as a finance specialist.For more information about Unsecured Personal Loan. Please visit at www.online-unsecured-loans.co.uk
This article is free for republishing
Source: http://www.articlealley.com/article_148434_19.html
Keywords: authoritative articles, building societies, business writer, clauses, creditor, financial help, installments, loan agreement, loan deals, loan period, maturity date, mutual decision, nominal interest rate, precaution
, repayment period, secured loans, unsecured loans, unsecured personal loan, unsecured personal loans, vital details.
