posted on 2020-05-25 14:44:07 by Admin
Personal Loan is the best financial product to meet the emergency funds requirement. The loan can be used for multiple purposes like wedding, home renovation, debt consolidation, payments, etc. It is an unsecured loan that does not need any collateral to get it.
With so many banks/ NBFC offering personal loans at different interest rates, you must compare all plans to get the best rates. Also, getting a personal loan at a low-interest rate will help to finance your credits well.
When you are looking for a personal loan, compare the interest rates and other costs of various financial institutions. Always ask your lender, the total cost associated with the loan. Opt for the right mixture of the loan amount, interest rate, and repayment period as per your financial situation.
#1. Compare Loan Offers from Different Lenders
It is a good practice to research various offers in the market. Little efforts here will help you to get the best personal loan at the lowest rates. So, what can you do? Shortlist the best lenders. Then compare their monthly interest rate and other features. Then, check your eligibility criteria in these institutes.
After that, apply and contact the selected bank/ NBFC. Get to know their policies and loan process. Once you are satisfied with the interest rate, processing charges repayment duration, and loan amount. Then, only apply online for a personal loan or visit the nearest branch.
#2. Maintaining a Good Credit Score
A credit score tells the creditworthiness of a borrower. So, if you have a high credit score then it will give the advantage to negotiate for a low rate on the personal loan. A borrower with a score above 700-750 has a higher chance to get a personal loan at a low-interest rate.
So, if a lender finds that you have a good credit history then it will give low rates looking at your responsible past behavior. In case, you have a low credit score, it's time to increase your score to reap the benefits later.
If you already have so many loans, it will not reflect well on your credit card score. Also, don't make simultaneous queries at multiple banks (to avoid giving the impression of credit desperation).
#3. Benefit of Employment
Many financial institutions offer personal loans to salaried employees. So, if you are working at a reputable private/ public company, then you can negotiate for a lower rate. With the company's reputation and regular source of income, lenders will get assured that payments will be done on time.
Your stable job and income will work in your favor to get the personal loan at a low rate. If you are working for a company for more than 1 year, it will add stars to your profile. Thus, a good history of employment is a good way to get a favorable interest rate and terms of condition.
Check out: Ways to Plan your Personal Loan EMI
#4. Be updated with Seasonal Offers
You can take advantage of seasonal offers that offer loans at low interest. These are attractive plans on loan. Keep an eye on your mailbox for such plans. Most often, these plans are usually available for online applications for better accessibility. Try to avail of these limited period offers to get the best interest rate on a personal loan.
Recently, banks are offering COVID-19 Personal loans at low-interest rates. Such loans can help to meet emergency requirements at low rates as compared to regular loans.
#5. Check the Interest Rate Calculation
Before getting the loan, ask the lender if it is offering a flat interest rate or reducing the interest rate. In the flat interest rate, the same interest you have to pay every month. Whereas, at reducing the interest rate, you have to pay interest at the only outstanding loan amount.
So this way, getting a personal loan at a reduced interest rate will be much lower than getting at the flat interest rate. You can use EMI Calculator to check your monthly EMIs.
The way to get a personal loan at the lowest interest rate requires persistent efforts. You need to be patient in your research for the best plan. Don't get lured by only interest rates, also check repayment period and loan limit.
As a responsible borrower, always pay your EMI on time. Keeping a good credit score is the key to negotiate for a low-interest rate.
Q. Can I compare various loan features online?
A. It will help you to compare different loan rates offered by the banks.
Q. What features should I check while comparing loans?
A. Along with the interest rate, check the repayment period, processing fee, and the loan amount you can get.
Q. How to Apply for Personal Loan?
A.You can easily apply for a personal loan online with minimal documentation.
Q. What is the minimum time duration to get the loan approved.
A. Your loan gets approved in a minimum of 4 minutes and disbursal in 24 hours.
To apply and for personal loans, home loans, business loans, credit cards, visit Loanadda.com. Best assistance and guidance is just one call away.