Know how to avail of a Personal Loan with a low interest rate

Personal Loan

A personal loan is an ideal option for individuals as it provides a quick influx of cash to meet necessary living expenses. The lowest rate personal loan helps an individual manage their financial obligations well.

Individuals borrow a personal loan to meet their life goals and objectives, including meeting educational expenses, consolidating their debt, planning weddings, starting commercial ventures, etc.

Opting for a Low Interest Personal Loan affects the EMI payment since it leads to huge savings. Even if the interest rate increases in the future, there will be a less monetary burden on the borrowers’ part.

How to avail of a personal loan with a low-interest rate?

Following are some ways to get a personal loan with a low-interest rate:

Maintaining a decent CIBIL score

CIBIL score is a crucial parameter to assess borrowers’ credibility. Financial institutions will provide low personal interest rates to individuals with a decent CIBIL score. Therefore, an individual must check his credit score before availing of a personal loan. 

For instance, an individual with a credit score of 500 will not be eligible for a personal loan. On the other hand, someone with a credit score of 650 will be offered a personal loan but with a high-interest rate, and lastly, an individual with a credit score above 750 will get a loan with a lower interest rate. Thelowest rate personal loan is guaranteed to borrowers with a satisfactory CIBIL score.

  • Stay updated about offers.

Financial institutions provide special interest rates over a particular time. If one applies for a lower interest rate at the time of offer, they might get a lower interest rate on the loan amount.

Lending institutions usually notify about the ongoing special offers via messages or emails. One needs to keep an eye on the following interest rate offers to avail of an affordable personal loan.

  • Compare interest rates

Before applying for a personal loan from any financial institution, it is always wise to compare the different interest rates offered by other financial institutions. Never settle for one; instead, proper research on the varied interest rate will help you get easy and affordable personal loans. Compare the different interests on the interest rate calculator and get a personal loan at a competitive interest rate. 

  • Be eligible based on your professional credentials

A stable income makes an individual an eligible candidate to the lender. Furthermore, a company’s good reputation can help in getting a lower interest rate. High income indicates that an individual can repay the loan amount on time. 

Furthermore, individuals must avoid missing the loan repayments. Missing out on it may have an adverse effect on the credit score, which will affect the interest rate.

Generally, those who pay the EMI amount and credit card bills on time are charged a lower interest rate. 

In addition, an existing borrower can negotiate with the lender for a lower interest rate. A high credit score will give you an upper hand while dealing with the lender.

One can use the online personal loan calculator to get a fair idea of the substantial amount that needs to be paid at the end of every month.

Calculating the EMI amount beforehand helps one decide on the loan repayment tenor. The tenor chosen affects the rate of interest. 

Apart from meeting high-end expenses, there are multiple reasons to apply for a personal loan. Getting a personal loan at a low-interest rate gives an extra cushion to the borrower.

Personal loans are ideal for aiding financial emergencies. However, individuals must be aware of the mistakes to avoid while applying for a personal loan.

Besides providing personal loans at low interest, leading NBFCs provide personalized offers and services to accelerate the loan process through pre-approved offers. Financial products on which the offers are available are personal loans, business loans, etc. Borrowers can check their pre-approved offers by entering their name and contact number.

On the whole, a personal loan helps manage hefty finances and meet unexpected expenses. Getting it at a competitive interest rate is a crucial step. Adhering to low-interest rates helps the borrower manage other financial liabilities.

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