Best Ways To Get Low Personal Loan Interest Rates
Whether you need some extra funds to pay for your honeymoon or you need some money to renovate your home, a personal loan can help you out. Personal loans are very useful as they allow you the financial freedom to achieve your targets. However, personal loans are unsecured loans and so tend to be a bit expensive from time to time. Thankfully though, there are some ways in which you can get a personal loan at a lower rate of interest. What are these ways and how can you use them? Read on to know more.
Tips to lower personal loan interest rates
Here are some of the handiest tips that you can use to lower the personal loan interest rates:
- Manage your credit rating –
It is very important for you to maintain a good credit score at all times. A person who has a good and healthy credit score always gets a personal loan at a lower rate of interest. This is simply because a person with a good credit score is someone who pays all his EMIs on time and clears all his dues diligently. Such a person is obviously a very disciplined person who takes responsibility for his own financial health. Such a person is guaranteed to repay his personal loan too and so the lenders offer the personal loan to him at a lower rate of interest. If you have a good credit score, you can expect the best interest rate. If not, then it is advisable for you to first improve your credit score by repaying your old loans and then applying for a personal loan. Doing so will surely fetch you the loan at a lower rate. - Compare –
There are many banks and NBFCs in India that offer personal loans. However, all the lenders have their own rate of interest and this is precisely why you should compare before you choose your lender. Some of the new-age NBFCs offer personal loans at very good rates of interest. If you compare and do your research, you can easily find a very good personal loan at the best possible rate of interest. - Do not apply too much –
Do your research and compare the personal loan interest rates. However, do not keep applying to different banks and NBFCs. When you apply for a personal loan, your credit score is pulled out. Repeatedly getting the score pulled up may make you seem like a desperate loan seeker. When this happens the lenders understand your desperation and hike the personal loan interest rate. This does not work in your favour and you unnecessarily end up paying extra for your personal loan when you stand to get it at a lower rate of interest. - Use your employment status –
If you have a good job with a stable income, the lender may feel more confident giving the loan to you. This is because it is obvious that you can afford the EMIs as you have a steady income. Make use of this and state to the lender that you are properly employed and draw a regular income. This can help you to get your personal loan at a lower rate of interest. Remember to select the EMI scheme wisely, and the monthly installment should be such that you can pay it easily. This will make the loan repayment smoother for you. - Look for a good lender –
And last but not the least, look for a good loan provider. As stated, there are many places from where you can take your personal loan. However, getting a personal loan from a good lender like Navi can not only get you the loan at a lower rate, but it will also give you the loan on better terms and conditions. This is highly desirable as you won’t face any issues later on. Explore all the lenders and choose one that has the best rate and also the services on offer.
Put these tips to good use and you will surely find the best personal loan interest rates.
In a nutshell
To put it in a nutshell, you can indeed get a good interest rate when you apply for a personal loan provided you follow the tips mentioned above. Maintain a good credit score, compare the personal loan interest rates, look for a good lender and use your employment status wisely to get low interest rates for the personal loan. Also, remember to borrow only as much as you need, because the more you borrow, the more you have to repay. It is thus advisable for you to make a plan, write down your requirements, do the math and then apply for a personal loan. This will help you to find the best personal loan at the best rate.
