How to Track Personal Loan Application Status Online?
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Today, you can avail various types of loans for varying circumstances and different reasons. Knowing which loan to apply for and for what purpose will help you in making the most out of it. However, the two loans that generally confuse people are home loans and mortgage loans. So, before we start talking about how to reduce the loan amount, let us understand the basic difference between these two types of loans and find out whether or not the latter can be converted into a home loan.
You should be aware of the conditions when you transfer the loan amount to another financial institution. Make sure that the interest rate offered by the lender on the loan is lower than that being charged by the current one. You should also be aware of the pre-closure penalties of the existing loan and processing fees for the new one. If you are not careful while switching the loan, it might cost you the same.
In addition to the above pointers, you may also consider taking a top-up from your lender, which will be higher than the interest rate charged for a home loan, but lower than that for a mortgage loan.
ALSO READ: Points To Consider Before Taking A Loan
The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.
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