Beware about The Loan Deal
Interest rate is a main measurement to measure a loan cheap or costly. Interest rates are the most critical of all the costs that you pay. Therefore you should go for the cheapest option. Beware of banking terms like flat interest rates that appear to be cheaper but are in fact the most expensive. For example a 7% flat rate would come out to an effective cost of around 13%. Therefore it’s better to choose a monthly reducing balance option than a half-yearly reducing option or flat-rate option. This means lower effective cost for the same stated interest rate. Interest-free loans are sometimes too good to be true but view them with suspicion.
There will also be other costs such as processing charges. You should ask for zero processing fees and zero-penalty for pre-payment option. If this is not available, then lowest cost would be better. Make sure you work out as to how much these other costs add up to. So even though the interest rate may be lower, it usually adds up to being expens