4 Simple Tips to Get a Low Personal Loan Interest Rates
A personal loan is an important financial tool available in India that can easily help borrowers cover their sudden financial needs.
The personal loan is a unsecured loan facility which means you don’t need to submit any collateral or security to a lender. If you have the personal loan eligibility, then you can avail the loan approval quickly.
However, even though the instant instant personal loan is quick to apply and get approval for, it carries a higher interest rate given its unsecured nature.
It is one of the reasons many people don’t apply for it despite having personal loan eligibility. Nonetheless, you can still avail the lowest personal loan interest rate by following some tips. Read on!
- Maintain a good CIBIL Score
Having a robust Credit Score is the first thing that a lender checks to determine if you have the creditworthiness or not. If you have managed to repay all your previous debts on time and without defaults, then you can get the lowest personal loan interest rate. As a result, you can pay reduced EMIs and manage other expenses easily. A Credit Score reading 700-750 is enough to get you the lowest personal loan interest rate offer. If you don’t have a strong CIBIL Score, you should build it first by paying off your existing loan and credit card outstanding on time.
- Think beyond banks
The first name that comes to mind while applying for a personal loan is of nationalized banks. They may approve a personal loan for a higher amount but ask for a higher interest rate while approving a smaller amount. It is a fact that only some probable loan applicants are aware of. Hence, if you want to enjoy the lowest personal loan interest rate, then you should apply with non-banking finance companies (NBFCs) and private banks.
- Compare lenders to find the best offer
Most of the prospective instant personal loan borrowers settle for the first lender whom they get approval from. However, the best thing to do is not go for the first offer and instead look around for the lowest personal loan interest rate. You can easily do that by landing on a third-party website where all personal loan offers are listed. Once you are there, you can compare all available instant personal loan offers as per your needs and repayment capacity to get the best offers. This way, you can also save the time that you would have invested in visiting many lenders physically.
- Consider a shorter loan tenor
The faster a lender is able to get its loan money back, the less risk they have on their lending. It is one of the prime reasons that leading lenders offer their lowest personal loan interest rate for the short-tenor loan. Also, a personal loan has a short tenor of around 1-5 years, and if you can go for a small tenor, you may get the best offers.
A personal loan does carry a higher interest rate because there are no collateral or security required. However, by using the discussed tips successfully, you can easily work your way towards the lowest personal loan interest rate and pay reduced EMIs.
If you are ready to apply for an instant personal loan, you can do that online and get quick approval and money disbursement within 24 hours. Some NBFCs presents pre-approved offers on personal loans, home loans, business loans, and loan against property, credit cards, EMI finance and more. Such deals are created to help a prospective borrower go through entire loan formalities faster and hassle-free.