A personal loan is the type of loan taken for personal needs like weddings, debts, travel, and other purposes. One does not require any collateral or security to avail of personal loans. These loans are excellent when you require funds in an emergency or a necessity.
Getting a personal loan is now a matter of a few clocks as most banks and NBFCs have shifted to digital, offering customers a convenient experience. Nowadays, it has become quicker and easy for one to obtain personal loan sanctions. That being said, spending some time on research and choosing a loan lender will take you a long way as the personal loan interest rates are more than other loans. So here are a few tips on how you can avail of these loans at lower interest rates.
Let’s explore a few:
Tips to Avail Personal Loan at the Lowest Interest Rates:
Know About Seasonal Deals
If you are not urgently looking for a personal loan and planning to take a planned loan, then the smart way to borrow would be to look out for seasonal loan offers. The lenders usually offer these deals during festive or holiday seasons. At such times the interest rate offered is usually lower than the rest of the year. Hence if you are not in a hurry, then keep watch for these offers by your financial companies.
Qualify Based on Your Employer Credentials
If you work for a reputed private or public sector, you can get a better interest offer. While processing your application, your lenders thoroughly verify your employer’s credibility to ascertain your source of income further. Any discrepancy in these checks will be considered as a risk and directly translates to higher loan rates. Hence if you have a credible employer, it is easier to negotiate a steal deal in interest rates.
Maintain A Good Repayment Record
A long-term loan repayment track record can improve your chances of obtaining personal loans at lower interest rates. Lenders check your repayment record for other loans before sanctioning a loan. Hence it will give you a better position to negotiate on interest rates.
Maintain A Clean Employment History
Your salaried employment and residential stability impact the interest rates too. Before sanctioning any loan, the lender or bank checks your employment history. Lending agencies favour loan seekers who are employed with the government or PSU. Financial status and stability play a significant role in the decision of interest rates. Additionally, your employers’ credentials are also considered, but the lenders ascertain the primary source.
Maintain A Good Credit Score
Improve your credit scores by paying timely EMI’s and dues. The lender’s approval process of your loans is done taking credit scores into account. Having a clean credit history will improve your chances of obtaining a loan and score low-interest rates. Lenders prefer individuals who maintain a good credit score amount of 700.
Apply For a Loan from Lenders Who Have Provided You Loans Already
Suppose you are looking for a quick yet economical personal loan. It is best to ally for it with the lender whom you have already dealt with. Lenders consider the negotiations made by my customers who are already associated with them. In fact, many lenders have rewards and exclusive deals for their existing customers. Enquire those criteria before you zero down on a lender.
Nowadays, most financial institutions have a robust digital platform. Do thorough research and zero down on a trustworthy financial institution that offers the best personal loan interest rates on the market. Use their calculators to find out the monthly EMI and check if it suits you. Select the one lender with the most competitive rates with the most features and benefits.
We hope you will use these tips for taking a personal loan at the lowest interest rates. It will save your money and time.