Over the years, personal loans have gained popularitywith more and more people relying on them.Especially, with the economic inflation caused after the covid-19 pandemic, jobsand businesses experienced a downfall. That’s when people preferred taking personal loans with a low-interest rate.
However, with digital platforms, an online personal loan is easily accessible for all age groups who are between 21-58 years of age and earning a minimum salary of Rs.15000 per month. Young professionalsand self-employed individuals can avail of an instant loan through the official lender’s website or the loan apps available on the Google Play Store, in-built into your android phone.
Besides, online personal loans procure flexible loan procedures with seamless features and benefits. Mostly, while taking a personal loan, people seek low-interest rates to ease off the repayment. This is because a low-interest rate will help applicants to tide over hard times and save money for other essential things.
But getting a low-interestrate onan unsecured loan is a tedious task as it allows no collateral and the lender may find this a risky affair. So, the interest rates on instant personal loans are slightly higher compared to secured loans. So, if you are wondering how to get low personal loan interest, there are chances that the lender may approve of a low-interest rate if you consider a few important elements before applying for the personal loan.
Here are the essential 5 tips you should stick to get a low personal loan interest rate
- Improve your credit score – Taking a personal loan with a good credit score will benefit you. A good credit score means you are a creditworthy individual, and the lender may offer you a personal loan with a low-interest rate. On the other hand, if you have a poor credit score due to delayed repayments on your existing debt, you can constantly improve your credit score throughtimely repayments.
- Compare with multiple lenders- Several financial institutions and NBFCs offer personal loans at an interest rate that may be affordable. Hence, before deciding or applying for a personal loan, don’t stick to just one lender.
It would be wise if you compared the interest rates with multiple lenders because each lender provides a different rate of interest. In addition, the Interest rate varies from lender to lender. Finally, choose the lowest interest rate that suits your budget and doesn’t make your EMIs heavy to repay every month.
- Choose a reputed lender-Verify and select a trusted lender in the market before locking in a personal loan. In terms of customer satisfaction and other services the lender provides, choose a lender with an excellent reputation in the market.
- Analyze other discounts and offers – It becomes vital to compare additional charges and discounts associated with a personal loan, including processing fees, penalties, foreclosure charges, etc. For example, the lender may offer you discounts or lower your interest rate if you are an existing customer.
- Evaluate your monthly instalments – Lower your interest rate by calculating EMIs using the loan EMI calculator. The Loan EMI calculator will help you to know a fixed interest rate levied by the lender.
As per your convenience, you can keep the EMI for a shorter or longer tenure. If the repayment tenure is short, the interest rate will get lower, and if the tenure is longer, the EMI will be less, but the interest rate charged on the principal amount will be higher. So before applying for a personal loan for a low-interest rate, evaluate and calculate carefully to avoid financial stress or disturbance in the budget.
A personal loan isa versatile product and can be used for many purposes. It is not restricted to any particular user. So, go ahead with these tips to get a low personal loan interest rate.