Getting a personal loan is the best solution to address your financial hassles; it not only helps you take care of unexpected financial situations, but also helps you fulfill your life goals. However, when applying for a personal loan, availing the loan at low interest rate is important as it ensures that you don’t end up repaying a high amount and can handle the monthly EMIs with ease. Read the below article to understand how you can get low interest personal loan in India.
How to get low interest personal loan in India?Snneha Lukka july 6, 2019
Ensure you have a good credit score: Your credit score determines your credit worthiness; it displays your ability to manage finances. The score ranges from 300 to 900 with 900 being the highest and 300 the lowest. The higher your score, the better the chances of your loan getting approved at a low interest rate. Having a higher score gives you an upper hand to get a high loan amount, repayment tenure and interest rates. Lenders consider score of 700 to be an ideal score for giving a personal loan. In case if your credit score is below 700, then you can look to improve it by following the below steps:
Maintain your credit utilization ratio: The ratio is nothing but the ratio of the credit you have used divided by the credit limit given to you. When using a credit card, ensure that you don’t end up utilize the maximum limit and use only up to 30% of the given limit. Pay your bills on time: When lenders review your credit report, they check how reliable you are with payment of your bills. This is because your good past performance is an indictor of you being responsible with your future performance. Paying the bills late or not settling full dues can have a bad impact on your credit score.
Check your credit report regularly: Ensure that you check your credit report to figure out discrepancies. Any error in your CIBIL report can bring down your score that can lead to rejection of your loan application. Compare interest rates online: To get a personal loan at best interest rate, compare personal loan lenders online on instantloanindia. Comparing personal loan interest rates online helps you make the right choice and get the loan at best rate and features. Also, when zeroing down on a lender, ensure that you compare charges such as foreclosure charges, part payment charges and others.
Check for seasonal offers: Lenders usually offer low interest personal loan at the time of festival such as DiwalI, Dussehra and others. You can check for these offers online on lender’s website or app. Lenders are also likely to notify you about the same via email or SMS. These offers are usually given for limited period at varying interest rates. Professional credentials: If you draw a high salary and work for a reputed public or private company, then there are high chances of you getting a loan at a low interest rate. Your company’s good reputation combined with your income helps you negotiate on the interest rate.
Finding a personal loan at low interest rate isn’t difficult. Research and spend some time comparing loans online to ensure you make the right pick.