Signing an agreement is a very serious matter. The agreement has legal effect and is by no means a joke. So, before you decide to apply for a loan and get to the point of signing an agreement, you must ask your borrower for some important information. If you sign the agreement and find that you are not satisfied with some regulations, it is probably too late and there is no chance to recover. Therefore, you must stand your ground and never sign vaguely because of the pressure or cajoling of the borrower.
How much does it cost?
The cost of a loan you can think of is nothing more than principal plus interest, but it actually costs more than you think. When you apply for a loan, the process also costs money, including the cost of preparing the relevant documents, as well as the processing and approval fees of the relevant departments. If you don't want to consult the borrower in person, you may also need an intermediary to help you build a bridge with the borrower, so the intermediary fee is also a large expense. So because there are a lot of extra expenses, you'd better make a list of the expenses you spend and ask the borrower to explain what they are for, otherwise you are likely to be overcharged by the borrower.
If you find any unreasonable charges, please argue with reason and ask for the cancellation and refund of these fees. If the borrower is unwilling to return them, I think you can cancel the cooperation. After all, the unpleasant cooperation at the beginning must not make sense to continue, and you can even report the lending institution to the relevant departments.
Do you meet the requirements?
In order to ensure the validity of the agreement, you must meet some requirements. For example, you need to open an account with the bank you borrowed to maintain a certain level of consumption and make the bank think you can be trusted. If you do not meet these conditions, then your agreement is likely to have no legal effect, which is very detrimental to you. If you can't meet some strict conditions, consider changing a lending institution and, of course, try to negotiate. No matter which of these two methods you choose, the ultimate goal is to make yourself meet the conditions of the loan and ensure the legal effect of the loan agreement. If there is a mistake in the process, you may lose money. So, when you apply for a loan, you must carefully check every regulation! If conditions permit, you can even consult professional institutions to obtain the most professional and useful advice.
What are the conditions related to the collateral?
General loans require the borrower to mortgage his or her personal property, including a car or house. But it's all about your personal property, so make sure your collateral doesn't have an impact during your normal performance of the loan contract. You need to check your loan contract, whether the relevant rules on collateral are reasonable, if not, you need to ask questions, and consult with the lending institution. Finally, when the loan ends, you should make sure that the possession of the collateral is yours.
What about the prepaid penalty?
In order to prevent the lender from losing interest due to the advance payment of the loan, banks will have the relevant provisions on fines. Because for the lender, it can reduce the interest, which is a good way to repay the loan, but it is really a loss for the bank. Before signing the agreement, you'd better confirm whether there are relevant provisions in the agreement, or how to implement them. You need to discuss and negotiate with the bank, which can help you save trouble later.
Having the above knowledge does not mean that you can sign a perfect agreement, but more importantly, your brain! Keep awake before doing anything, so that you can make the most correct decision.
