There’s a lot you can do to get a bank loan at a good interest rate:
Shop around
Ask your preferred choice to match a competitor’s best offer. If you or your family have frequently dealt with a particular bank in the past, ask for a preferred lending rate.
Don’t feel intimidated
Banks want to forge long-term relationships with young, educated, potential high-income earners like you. Ask them to explain any unclear terms. If you don’t like a bank’s attitude, go elsewhere.
If you are turned down for a loan, find out why
Your credit rating might be based on an inaccuracy. Get a copy of your credit record from your local Credit Bureau—everyone has the right to receive this.
Always negotiate to get a lower interest rate on your loan
Try asking banks for a quarter to half-percent lower. If they agree, you could save a substantial amount of cash in the long run.
See if you can make lump sum payments without penalty when you’re repaying your loan
This is particularly important if interest rates start to rise.
Bank loan repayment guidelines:
- Make payments on time! This boosts your credit rating and betters your chances of getting future loans at reasonable interest rates.
- Keep records of your payments—banks can make mistakes, too.
- Pay down your debt if you ever have surplus cash during school, and do it as soon as possible. Start with the loan charging the highest interest rate, if you have more than one loan.