Each one of us has taken loan at some point of time in our life. More or less each one of us, before the end of payment period realizes a good number of things that we should do or should not do. No matter if it is a business loan or personal loan; one should derive maximum benefits out of the loan. Maximum benefit means, meeting the objective for which the loan has been taken. Before taking a loan one must draw a chart to be able to repay the loan back in a particular period and yet loss should not be incurred.
It is a general believe that, the shorter the repayment period, the better for the borrower. But they should understand there are advantages in longer term repayments. Longer term loans have a very wide margin, so the risk factor is considerably less. In a long term, one may end up paying a little more but it is better rather than adjusting your life style and budget. A quick repayment schedule can also create obstacles during the whole repayment process. A non payment or delayed payment of loan is a disaster in case of a business loan and suicidal in case of personal loan.
So, make a proper judgement of the repayment schedule and involvement of risk before borrowing a loan.
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