Srini Krishnamurthy, associate professor of finance, has advice for those who want to lower personal loan rates and how important annual percentage rates are to personal loan terms.
“Oftentimes, if you have a relationship deposit account with a bank, you can benefit from a slight decrease in the loan rate, usually a quarter to half a percent,” said Krishnamurthy. “You could choose to borrow for a shorter term (say five years instead of ten), and while your interest rate will be lower, the monthly payments will be larger so make sure that you can afford to make the payments.”
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