Smart Tips to Get the Best Rate on Your Personal loan

Smart Tips to Get the Best Rate on Your Personal loan

Personal Loan

When you find yourself constantly struggling to fulfill your dreams or needs due to financial problem, a personal loan can help you recover control over your financial situation. Personal loans are fully unsecured loans. It’s easier to procure because of less paperwork and without giving a guarantee with the best interest rates. It is quite difficult to find the best interest rate for personal loans due to some reasons.

We are really trying hard to reduce any financial uncertainties that may affect our day to day activities, but we may have to face financial uncertainties sometime in our lives. This might be due to some surprising expenses that might have come up suddenly or due to the desire to fulfill our long-lasting wishes. To get a personal loan on best or low-interest rates is the best solution to manage all financial problems of life.

Best Interest Rate Personal Loans

Personal Loans on the lowest or best interest rates are one of the most popular financial products of the existing times due to the various benefits they offer to the applicants. Personal Loans in India are offered by many financial institutions at very competitive rates. Personal Loans are an unsecured loan where you don’t have to offer collateral (assets) to the lender in lieu of the money.  You need not give any details to the lender regarding the planned use of the money.

The repayment tenure for a Personal Loan can go up to 5 years, due to the various benefits offered by Personal Loans, they are best to meet any urgent financial expenses. Repayment can be made in the form of EMIs; there is no needless pressure on your savings. Personal Loans are available for salaried, self-employed and sole proprietors only. Most of the lenders allow you to foreclose the loan without paying any penalties as and when your financial situation improves.

There are specialized online finance marketplaces where you can compare different Personal Loan products and apply for the one which meets your requirements the best.

The entire process starting from application till disbursement of loan can be completed within a few hours’ useful online channel, like . With the help of this online channel you can meet your expenditures in an efficient manner.

Smart Ways to Avail Low- Interest Rate Personal Loans

Following are the smart ways to avail low- interest rate personal loans without any difficulties:

  • Maintaining a Good Credit Score
  • Ensure Stability of Income
  • Having Private Assets
  • Make a comparison between Multiple lenders
  • Be careful of Hidden Costs incurred with the personal loan
  • Chase for Discounts and Offers
  • Check the best calculation Method for the Interest Rate

Maintaining a Good Credit Score

Having a good credit score is necessary to be appropriate for a low- interest rate Personal Loan because credit score shows the previous financial records. Most lenders will not even process your application if your credit score is not up to the mark. Maintaining a credit score of more than 700 will enhance the chances for a better loan, it would also ensure the lowest interest rates from the lenders. The lenders have less risk of losing their money (default) and will be ready to offer you highly competitive interest rates.

Ensures Stability of Income

The lenders also took your professional stability into consideration. Also, want to know about job tenure.  This fills in them the confidence that you have stable cash and will be able to repay the EMIs on time. They are thus able to offer you lower interest rates. You must be working at your present job for at least two years to be qualified for a Personal Loan.

Having Private Assets

While there is no need to pledge any asset to avail a Personal Loan but having any fixed capital asset in your name significantly reduces the risk of the moneylender, and they know that your chances of defaulting are minimal.

Make a comparison between multiple lenders

The marketplace is filled with personal loan offers, a lot of lenders are ready to provide personal loan at the best rate. However, you must choose your lender with care. Getting a personal loan at a low rate is important. Compare the features of different lenders and interest rates with other charges. You can also use a personal loan EMI calculator of the various loans you have shortlisted. It will also help in pre-planning.

Chase for Discounts and Offers

Banks and Non-banking finance companies (NBFCs) and other lenders to offer rate, discounts and cash back offer on loans of a particular amount. Such a limited period offers may go a long way in helping you balance out the current cost of your personal loan.

Be careful of Hidden Costs incurred with the personal loan

A personal loan with a low- interest rate is good enough, the loan also carries a hidden charge. It pays to be careful, as some lenders try to make up for a low- interest rate by charging a heavy processing fee. Other fees like those for foreclosure, part pre-payment etc.  So, before applying for a loan with any of the lenders must require being aware of all the charges.

Check the best Calculation Method for the Interest Rate

If you find a lender offering you an interest rate that seems too good, try to understand the all about loan completely, can also hire some loan experts.  The rate offered is a flat rate that doesn’t consider the repayment of principal and interest amount over the course of the loan tenure. Read all the terms and conditions carefully and take decision rationally.


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