Banks, Moneylenders, Private Financiers, everyone is running after the salaried individuals. All they want is an YES from them. The Personal Finance is delivered , wrapped up in a beautiful package. So easy, So fast, but is it so simple? In the hour of urgent need, most of us tend not to look at the fine print of the bankers or the money lenders. We sign up and some how get the money. We repay every month faithfully. After a few months when we look at the loan statement, we are taken back.

The loan amount has actually increased instead of decreasing! Why is this? This is because the banker or the money lender is often wise to our needs,but more wise about their bottom lines. They extrapolate all clauses in the documents that we signed . These clauses give them the right to load various charges on to our loans. Without ever inspecting your workplace or home, they charge Inspection Charges. They hike the rate of interest periodically without ever thinking of informing you or sticking to the originally contracted rate. They have a special weapon called Incidental Charges which could be anything. Right from the charges for the phone call they made to you or the expensive dinner the loan recovery manager ate last night!

All these ensure that the banker gets his due while we simply remain sitting ducks, watching helplessly as the remittances we make towards the loan just sink and disappear.

[ad]

If we take a little time to think before we sign the dangerous documents, we can save ourselves from eternal liability!. Before you put any signature on any piece of paper, insist that it be filled up. Read the filled up portion. Check that the amount granted, rate of interest, period of loan, EMI s are filled up correctly. Ensure that the correct rate of interest is mentioned. Ensure that there are no hidden documentation, incidental or other charges. Obtain a loan statement once in a quarter and check that the interest charged gets reduced proportionate to the installments that you pay.Never sign any papers that the bankers may ask you to sign during the pendency of the loan, if you are prompt in loan repayments.

Once the loan is liquidated, be alert to get a no-liability certificate from the banker, lest they come up with a demand note later.Just in Case!

Bankers and other money lenders are there to help you meet your financial requirements. But that does not mean that you should trust them blindly. Keep your eyes peeled!Mate, then only you shall survive!

Share