You can certainly expect to pay a processing fee when obtaining an unsecured personal loan. Processing and/or origination fees are standard and unavoidable. But that doesn’t mean you shouldn’t try to negotiate a better deal. In fact, some lenders automatically deduct this fee from the total amount being loaned. For most borrowers, this comes as a huge surprise.
Before signing any loan papers, look at everything you’re being charged, including the annual percentage rate (APR), which is different that the interest rate they may be offering. It’s important that you know every detail so that you are not trapped into agreeing to a quick loan online that you might ultimately never be able to repay. Deducting the amount of the processing fee from the total amount loaned is a sneaky way of charging the borrower a prepayment penalty without telling them.
If you are being told that you need to accept an offer on a quick loan online because it “expires in 24 hours,” you are being unnecessarily rushed. The lender may be counting on you to not take the time to read the fine print. This is where they are likely hiding all the risks. Make sure you read and fully understand their terms and conditions and that you get all your questions answered. If they claim they are offering the “lowest interest rate of all time,” you shouldn’t just believe them.
If they are rushing you to sign the paperwork, this is a giant red flag. Everyone knows it is critical that the fine print must be read before signing any contract. And a loan agreement is no different. In fact, it is more important to scrutenise the fine print on a loan agreement. Even if you are in a huge hurry to get your hands on the money, do not fall into the trap of rushing through the paperwork.
If you’ve been dealing with the same bank for the last ten years you probably assume that they will offer you their best deal. Sadly, this is not necessarily true. Banks, in an effort to recruit new customers, will often give them their best deals, not their existing customers. It would be smart to go online where you can find some very reputable third-party lending websites. These websites post the most current information on quick loans online, including the processing fees and interest rates being offered.
If your lender wants to sell you an insurance policy on your loan, you might want to question them further. The purpose of this insurance is to assure them that they will be paid back should something dreadful happen to you. It may be a life insurance policy they are trying to sell you or some form of insurance that covers job loss. If you are confident about keeping your job, then this insurance is not really necessary.