Low rate business loans are provided to all types of people for meeting variety of expenses towards their trade. However, just on applying for these loans is not going to give you the finance at desired rates. Instead you are supposed to meet certain conditions, and you must go well prepared to avail the benefits of the loan.These loans are provided at low rate of interest to the business people, against their residential or commercial property. The property has to be pledged for collateral with the lender. This means that you should be prepared to put the asset at stake. Collateral cuts the lender’s risks, but to avail the loan at low rate, still you must be having an excellent or good credit history. A high risk borrower with a bad credit record will be offered a secured loan at higher rate than a good credit borrower. Therefore, in case of a bad credit record, apply for these loans with an improved rating on paying off some debts.You must also be having a good repayment capability. This means that your business should be in a good position of repaying the installments of the loan on time. So, make a convincing repayment plan, giving details of your business earnings and spare money that you can have each month for repaying the loan. You can borrow any greater amount, depending on value of the property that you pledged for collateral. The loan can be repaid conveniently in 5 to 30 years.However, if you need only smaller amount, then it can be borrowed as unsecured business loan, without providing anything for collateral. But the rate will be little higher. Still, once you start comparing number of offers of low rate business loans, you can find a loan at comparatively lower rate, if you have a good credit record. Hence, it is essential that you approach the lenders with an acceptable credit rating to avail the loan.

Monthly payments make up an important element of the auto loan. The amount of money that you will pay each month depends on a number of things; such as the money you put down, the value of the car, loan term, your current income and credit score, etc. Many a times people wish to repay their auto loan earlier than their term or wish to get the loan refinanced. Understanding the effect of paying your loan early vis-à-vis making timely payments can help you in making a well-informed decision.

Pay Early or Pay on Time: The Auto Loan Question

· Are you interested in making Early Payments?

You know you are a financially adept individual when you think about paying your auto loan early rather than spending the money on frivolous things. The following pros and cons of prepayment will take you one step closer in making the right decision.

Pros: The reduction in the interest amount can help you save a great deal of money. Paying off your auto loan early gives you the financial freedom to use that money elsewhere. Secondly, if you are going to receive a large sum of money in the near future, it is wise to prepay your loan instead of spending it elsewhere. It will make your debt-free early and allow you to live a tension-free life.

Cons: Timely auto loan payments mean that you have planned your finances in an efficient way. If you repay your loan all at once, it may project that you are unable to manage your credit. Remember prepayment of your auto loan will not hurt your credit score, however, it will not improve the score either.

· Do you believe Timely Payments are a Good Choice in the Long Run?

Small payments made every month can surely have a positive impact on your credit rating. The following pros and cons will help you clarify the advantages and disadvantages of timely payments.

Pros: Timely payments made every month are certain to keep your credit score in check. Many a times people may forget to make the payments on time. However, automatic bank payments can help you to keep your payments regular. A shorter loan term with timely payments will help you in obtaining lower interest rates and an overall cheaper auto loan deal in the future.

Cons: An automatic timely payment means that you will have to maintain a certain balance in your bank account, which may temporarily block your finances. A certain amount of your income gets allocated to the monthly payment. Compared to a prepayment strategy, timely monthly payments carry less financial freedom.

Your Auto Loan Payment Schedule: What is Best for you?

Income is an important element that decides which option you should choose between paying your auto loan early and making timely payments. If your monthly payment is manageable and your income supports the loan, you should opt for timely payments. However, if your income source is unstable and you require a car on an immediate basis, you should opt to make a prepayment of your entire loan. On the basis of your financial situation and circumstances, make the wiser choice.