A good deal always makes the purchase worthwhile. We have all bought goods and services a number of times. Most would be need based, and others for our pleasure. When the product purchased is bought at a reduced value or with a free gift, we think we have made a great bargain. Consumer Psychology teaches that a free gift is always welcome.

When sourcing a good loan deal you too can have a great deal falling into your lap. There are a few points to remember for this.

Unlike impulsive buying, taking a loan is more serious and has to be a thought out process. It should begin ideally with a need. A need that cannot be paid for by you with the current income or savings you have. A loan taken for a luxury would need to be reviewed. A car for instance could be a need if you work far away from home. A luxury car on the other hand would not really be necessary. The difference in cost for both could be an awful lot. Having a positive attitude tilting towards a need based loan will prevent a massive amount of debt right at the start.

Instead of taking a formal loan from a bank for instance, why not take a soft loan. If you borrow the money needed from family or friends you can leverage the benefit of the relationship and get an interest free and friendly loan. This is a much better choice and one, though informal, can still be worked out in its terms and conditions in a good manner.

If you must take a hard loan then you need to do the following. Decide how much money you need. If you have a decent credit history, chances are, you will be offered more than you apply for. Even if the money seems good, remember it is still a loan and it will make you a debtor. Decide firmly to take just what you need.

Like you would shop around for your gifts, do the same with the various lenders. At any given point of time you can find loads of offers and advertisements for the same. Get the information, compare the terms, set up appointments to know learn more and then choose your lender. Do not assume that going in for the biggest name would ensure you get the best deal. Check however for the authentication of the lender as that will ensure your position in case of any issue.

While the rate of interest is a prime factor, consider also the fine print. Application charges, late payment penalties, hidden charges, early repayment penalties if any, can nullify the benefits of a loan with a low rate of interest. Often the rate advertised may not be applicable to you if your credit history is not much.