A personal loan is a stellar financing solution that helps you meet a range of personal and professional needs in a hassle-free way. Whether you use the personal loan for debt consolidation, want to fund your daughter’s wedding with
loan or want to sail out with your partner on a world tour, you can do it all with a personal loan. As it is an unsecured loan, you do not have to pledge any collateral to access a hefty sanction, but the interest charged is higher than that of a secured loan. However, when you apply for a personal loan with trusted lenders, bagging an affordable interest rate is also easy.
Take a look at these key tips that will answer the common question: How can I get a low-interest personal loan?
While there are many simple methods to avail a hefty personal loan sanction at competitive interest rates, comparing lenders is one of the simplest and most vital. Instead of applying for a loan from the first lender you come across or via your existing bank, check to see what’s available in the financial marketplace. This will allow you to crack a
favourable personal loan interest rates. If you are wondering ‘Which lender is best for personal loans?’, the best way to go about it is to check the interest rates offered, hidden charges, if any, the repayment tenor, ease of application, online access to your loan details, a substantial loan amount, and eligibility criteria.
You can enjoy a personal loan at
low-interest rate from reputed and trusted lenders like Bajaj Finserv. Here you get a sanction of up to Rs.25 lakh via an easy online or offline application. Moreover, you can make the most of flexi facility and withdraw from your sanction in parts, multiple times. Interest in this case is charged only on the amount you use. Thereafter, you can also make part-prepayments and even redraw from the repaid amount. Additionally, you can choose to pay interest-only EMIs through the tenor and repay the principal only at the end of the tenor. This helps you save up to 45% on EMIs and helps you address frequent or unexpected costs easily and affordably.
Your credit score is a measure of your
creditworthiness, so having a score of 750 or more is likely to fetch you a quicker and more affordable sanction on unsecured loans. When you apply for a personal loan, check your credit score in advance. Rectify and improve your score in case you find it lower than 750.
Owing to wrong information provided by your existing or old lenders, your score may be low. So, checking your score and credit report will help you spot any mistakes, so you can report them. If you have too many on-going debts or have missed paying EMIs
on some of them, you are likely to have a low credit score. Work on these areas of concern and only apply for a personal loan when you have a good score to enjoy a nominal rate of interest.
In many cases, a lender offering a low interest sanction tries to make up with a list of hidden charges. A hefty processing fee and secure fees, high charges for foreclosure or prepayment, and other miscellaneous charges create undue pressure on your finances. So, beware of these and stick to sanctions from trusted lenders who have all the fees listed clearly. Compare these fees charged by different lenders to identify the one with the lowest charges.
Lenders will give you a sanction on a loan amount you requested at a favorable interest rate only if you qualify for the loan based on their specific terms and conditions. Knowing the eligibility criteria is thus very important. For instance, if you are applying for a personal loan for debt consolidation, read the lender’s debt consolidation loan eligibility criteria to see if you meet the requirements. This will help you secure the loan faster and on a low-interest rate.
One of the most important things to keep in mind is the question, ‘What is the minimum salary required for a personal loan?’ from your chosen lender. In most cases, lenders set a minimum salary requirement, have a specific list of cities in which they sanction a loan, and also want you to have a good credit history. Qualifying for a loan based on these terms is sure to fetch you a low-interest rate on your personal loan. These handy tips will help you get the most affordable loan; however, be sure to also check your personal loan EMI in advance using the EMI calculator. This will help you forecast your EMI and plan your repayment. To get instant personal loan approval, check your pre-approved offer and check the customized deal awaiting you.