Getting a loan sometime can be a very straightforward thing. The main reason why financial institutions give you loan is because they want to make money from you. Some people mistakenly think that bank manager that approve their loan application is doing them favours. This is far from the truth. The bank manager is simply making money for his employer ie the bank. Banks use credit agency to assess your suitability for loan. If you have good credit history, the offer you as a practise low apr loan. However, if your credit history is not  good enough. Getting a low apr loan could prove very difficult. The bank may want to offer you a high apr loan.


The banks make money on the loan by assessing their risk. They offer you high interest of their risk is higher apr to people with bad credit score and low apr loan to people with good credit score. Their assessment is based on their perception of your likelihood of defaulting or paying back the loan. As a business or an individual looking for loan. Your objective is to protect yourself by shopping around. Don’t ever accept your first loan offer no matter how good it sounds. Shop around, use the power of the internet to look around for the best loan deal. If you eventually decide on a particular loan offer, you can still haggle on offering to accept the loan on lower apr if that is acceptable to the bank. Hence, when applying for loan don’t sound too desperate, calm and negotiate the best loan deal