You want to get a bank loan so that you can take your family on a much-needed vacation, but you want to get a reasonable rate. After all, vacations are expensive enough without being charged an exorbitant interest rate on top of it. Here's how to go about getting a reasonable rate for a family loan.
Know your credit score. Finding a reasonable loan rate is a function of your credit score. If you know in advance that your credit score is not good, it is best to do what you can to increase your credit score before applying for a loan.
Use your own bank. If you've established a relationship with your bank, your chances of getting a better rate are better than from a bank you do not have a relationship with. Many banks offer rate discounts if you have more than one account with them.
Offer collateral or security. If you use your home as collateral, you will get a lower interest rate. Your loan will not be as much of a risk for a bank if they have something they can use as collateral.
Shop around. Before you sign on the dotted line, be sure to shop around. Keep in mind, however, that if you are going to shop around, your window of opportunity is limited. You do not want several banks pulling your credit rating over a prolonged period of time. It will only cause your credit score to drop.