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Loan borrowers have been witnessing a lot of offers pouring in from all sides. The credit crunch and its aftermath have led to a situation where several banks are reducing their interest rates for the customers. At the same time, many banks are also trying to attract more customers by making some special offers. These special offers often have some characteristics that need more attention so that the right manner of evaluation is possible in these areas. Here are a few factors that one should pay attention to in the process of choosing a special loan scheme.
Time Period of Low Rate
One of the most common ploys adopted by banks to attract investors is to offer a low rate of interest. Often this low rate of interest is not applicable for the entire duration of the loan. This point effectively reduces the attractiveness of the loan that might have been initially visible, thus it will need a reworking. If the low interest rate benefit is only for a specific period of time then this has to be considered in line with the overall period of the loan to understand the importance for the benefit. For example, if there is a concessional rate for two years out of a total loan period of 5 years then this is significant. On the other hand, a lower rate for one year out of a loan period of 15 years might not be significant. The higher the benefit of the low interest rate the better it is for the borrower.
Actual Linking of Rate
The initial interest rate applicable to a loan offering might look low, but the important point is the rate to which it is linked once things return to normal. This could be a slightly higher or different benchmark with the end result that the customer could end up paying a larger rate of interest than the market rate when the resetting takes place. For example, if a person has a normal loan then the rate could have been 10 per cent in the first year that becomes 9.75 per cent in the next year and then 9 per cent in the following year. On the other hand, a concessional offering might give 9 per cent in the first year but then when the linking takes place this could raise straight to 10.5 per cent because the benchmark rate to which this is linked is higher. This can then reduce to 10 per cent in the third year, resulting in a situation where the borrower ends up paying a larger sum. Choosing a loan where the benchmark rate is specified and which has a better linkage with market changes is important.
Period of Application
Another factor that is commonly applied in case of these special schemes is that they are open for investment only for a specific period of time. There is always a date or a period mentioned for which the rate will be applicable and this means that you have to take a new loan during that period to be given the benefit. This can result in a situation where the plans of the borrower might have to change in order to get this specific benefit. So, for example, if you were looking to take a loan after 4 months to buy a car but there might be a car loan scheme on, which is open only for 2 months, then you might have to prepone your buying decision in order to take benefit of this move. Choosing a special rate scheme that matches with your buying requirement will give the necessary amount of flexibility for you as a borrower.
A prospective client lands on your website. “Nice site,” she says, nodding approvingly. “Great logo.”
So she looks for a Call to Action: "Click here and get a Free Report."
And you offer one. 101 things a coach [accountant, consultant, speech coach, office organizer or virtual assistant] can do for you.
At that point, your prospect decides to leave. Unless she's been living on another planet, she has some idea of what you do (or thinks she does).
If you're an accountant, she won't be astounded to discover you'll prepare her taxes. If you're a virtual assistant, she'll expect you to help with mailing lists and phone calls.
And she's been to 43 other websites. She's already seen the same list. Her eyes start to glaze over. She decides it's time to take a break and watch the latest replay of The Sopranos.
At least that's what I would do.
How can you prevent the bleary-eyed visitor blues?
(1) Create a problem-solving Call for Action – before you design the rest of your web site. “How-to” titles work best because you demonstrate that you understand the problem and showcase your unique approach.
A Virtual Assistant: “How to delegate the 10 most critical tasks that keep your business alive and profitable.”
A speech coach: “Five techniques that tell your audience you're a professional speaker"
An office organizer: “It's 9 AM – do you know where your Top Priority is?”
(2) Make it easier for prospects to figure out why you're different from the competition on the other 43 websites your prospect just visited.
A hairstylist: “Curly hair is my specialty (and we're never late with appointments)."
A virtual assistant: "I can program the Internet's top shopping cart system to save you 5 hours each month."
A speech coach: "Five clients I coached last year are now listed with speaker bureaus."
(3) Identify benefits your prospect may not have anticipated.
For instance, prospective clients may not realize that some office organizers can help them choose furniture to make their lives easier. Others employ feng shui principles.
Bottom Line: Visitors who see a big grab-bag list of offers will tune out if they recognize the first few. “Ho hum. I know that.”
Instead, find ways to showcase yourself and your expertise --professionally. Your visitors will thank you.