How To Get The Best Personal Loan Interest Rate
When applying for a personal loan, the interest rate plays a crucial role to determine whether the loan suits your financial needs and capabilities. Various factors affect the interest rate charged by the financial institution. A low-interest rate makes the loan more attractive by making repayments easier.
At the same time, it is important to find which bank is best for a personal loan. Do note that a loan with the best interest rate might not be the best loan for you. There are additional terms like EMI, processing fees, application process etc. that you must consider while choosing a personal loan for yourself. When aiming for a lower interest rate, here are a few things to keep in mind:
1. Get A Good Credit Score
A good credit score is a testament to prudent financial management. While assessing your application for a personal loan, the financier will assess your track record of repayment habits and capability. Borrowers who have paid their EMIs and credit card bills in the past on time are likely to be charged a lower interest. By paying your credit card bills, and proving stable and sustained income, you can convince the financier that you are a trustworthy and low-risk borrower. A score of 700-750 or higher is desirable.
2. Comparing Lenders
While you are applying for personal loans, different financial institutions offer different interest rates. This depends on how they assess your application and their risk appetite. As a borrower, you should research which bank is best for a personal loan. You should also look at other terms of the lender and notice whether a lower interest rate means hidden charges or a strenuous application process. IIFL Finance offers attractive personal loan interest rates up to 5 lakhs with a quick 3-step, hassle-free process.
Zaroorat aapki. Personal Loan Humara
Apply Now3. Look Out For Seasonal Offers
At times, lenders may offer special interest rates, especially during festivals. You can opt-in to be notified of such offers through SMS or email. These offers will make the personal loan more affordable if you time it right. You may also ask for any additional discount that lenders may be providing at the time of your application.
4. Take Advantage Of Your Professional Credentials
Being a highly paid employee with a reputed private or public company with a stable income throughout the years builds the confidence of the lender. This makes you a stable candidate and the lender can trust your repayment capability. While negotiating terms, bring this to the lender’s attention and use it to your advantage to push for a lower interest rate.
5. Making Changes To The Tenure
Generally, the lower the tenure, the lower your interest rate. This is because a shorter tenure makes the loan less risky for the lender. However, for the borrower, this means that the EMI will be higher. Essentially, you will pay more money monthly but can bring down your interest rate. Thus, the total repayment amount will be lesser. Therefore, if you have the capacity to pay a higher EMI based on your monthly, you must reduce the tenure of the loan repayment.
Frequently Asked Questions
Q.1 Can A Loan Be Prepaid Before The End Of Its Tenure?
Ans. IIFL Finance allows you to prepay your loan post 6 months of loan disbursal. We do not charge any prepayment fees for the same.
Q.2 Are There Any Additional Costs Involved In Taking A Personal Loan?
Ans. There may be some additional costs included like a processing fee of up to 2% and late payment charges if you default on your EMI payments.
Zaroorat aapki. Personal Loan Humara
Apply NowDisclaimer:The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
