It was on a fine morning that I received a mail from a loan vendor providing information on my failure on meeting the loan payments, which I believed to be something simple. But it didn't take much time for me to realize that I am in a trap. My only sin was that I opted for a simple personal loan.
Availing financial assistance from a financial institution was the need of the hour. Like any customer, I inquired about the terms and conditions, on interest rates along with payment details, for which the banking organisation presented a bundle of documents. I like any other satisfied customer used the opportunity of the financial assistance. According to the papers, I was to pay 11% interest which after comparing with other loans sounded like a fair deal. Who knew that there was a trap waiting for me all set.
Factors Acted Against
According to documents, the interest rate was 11%, but there were also some hidden charges. All together, it could easily reach around 16%, which may was higher than many other loans.
To make things worse, there was also a clause stating on the consequences hat may happen on non payment, which acted against.
Lack of clarity poses a real threat in most of the personal loan documents. There are chances of banking institutions charging higher interest rates later on the basis of hidden statements in the documents. Always care should be taken to clarify the clause and conditions to avoid later miseries.
Never make any failure in payment of amount, which may pose a danger of hike in interest rates.
Never can it be stated that personal loans are always dangerous, but make sure on every detail of the document and amount as ignorance on this can make your life miserable.
