Understanding loan terms is crucial before borrowing. Key elements include the loan amount, tenure, and interest rate. Loan disbursal marks the funds' transfer, and collateral secures the loan with assets. Co-borrowers share responsibility, while co-signers assume liability. Grace periods offer payment flexibility, and processing fees cover administrative costs. The loan-to-value ratio assesses secured loan viability. Pre-payment and part payment options exist but beware of pre-payment penalties. Loan amortisation creates a fixed repayment schedule. Deferment and credit appraisal aid in challenging situations. Hard and soft credit checks impact credit scores. FOIR ensures loan eligibility by assessing disposable income.
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