Life is full of uncertainties, to unleash the prosper moments of life requires financial stability. The very dynamic nature of human life can face lots of complications related to finance, i.e medical emergency, marriage, education or any other contingencies. This is the time when a suitable personal loan meets the unforeseen financial complexities. It is an unsecured loan that can be acquired easily without any complications. The lenders don’t ask for any collateral security. Since the disbursement policy is simple, personal loan attracts a comparatively high rate of interest. It is gaining momentum with time, and its requirements have increased exponentially in the last few decades. Personal loan is an immediate inflow of finance to meet necessary personal expenses.
With the advent of technology, getting a personal loan became simpler and flexible.The application process and disbursal of required personal loans have become much convenient. Several reputed lenders offer online service which includes all required documentation and verifications. One can easily get a personal loan with his or her mobile applications. These apps are designed for getting instant personal loans without any physical prerequisites. You just need a stable internet connection to obtain a personal loan instantly.
The lending institutes vary from nationalised commercial banks to reputed NBFCs. The interest rate charged by private banks is not very high. However, the NBFCs are getting much preference in this sector compared to banking institutions due to flexibility. The personal loans are granted in a lump sum, and the borrower makes the monthly payments until the debt is cleared. Certainly, credit is a powerful financial instrument to manage the contingency, but it is a serious responsibility. Before applying for a personal loan, one should know more about its complete picture. Considering every viable aspect before making final decisions.
Effective Ways To Get Low Personal Loan Interest Rate
Everyone needs some sort of financial help in this volatile world. A personal loan is the most favourable credit instrument to meet any kind of unforeseen financial emergency. It doesn’t require any collateral security or any kind of mortgage, disbursed instantly and also has no such complexities related to documentation.
However, getting the requisite fund on short notice is worthwhile, it is also crucial to know how to get a personal loan at the minimum interest rate. The market is full of lending institutions like banks and NBFCs. Therefore, it is important to know the factors influencing personal loan interest rate. Let’s get acquainted with effective ways to get a low personal loan interest rate:
Maintain a Healthy Credit Score
An individual’s credit score reflects his or her creditworthiness based on how one has managed previous credit. In India, a score above 750 is considered a suitable credit score and it amplifies the chances of getting a good personal loan deal. Having a decent credit score shows individual responsible behaviour in terms of credit repayment. You can maintain a good credit score by following simple steps:
- Manage and pay your bills routinely, and remain consistent with it.
- Effective management of outstanding debts
- Avoid making any impulsive purchase with credit cards.
Having Favorable Repayment Track
Having a good repayment history is essential for getting a low-interest personal loan. Clean all your requisite previous debts by paying on time. It improves your creditworthiness and assures trust among the lenders. The unhealthy repayment record will reflect financial instability and thus acquiring a personal loan will be immensely difficult. However, even if you get it, the interest rate will be excessively high with no room for any negotiations.
Look for Special or Seasonal offers
Many times to attract customers, the lender comes up with some sort of seasonal offers or special deals occasionally. Mostly it happens around festive seasons, and India is well-known for its festive colours. These deals are available for a short period, and provide loan at a low-interest rate. So, look out for such favourable deals and make get a personal loan at a more affordable rate.
Having a good professional credentials
Lending companies look for customers with a high rate of financial stability. An affluent salary and employment stability will enhance the chances of getting a personal loan at a low rate of interest. Having a stable professional career is a plus point and also gives space for negotiations with lenders.
Research Thoroughly and Compare Lenders
Before applying for a personal loan, do research and compare the lending rates of multiple financial institutions. It is considered one of the most basic and essential financial workouts. Traditionally, the scope of the personal loan was limited to banking institutions only, now there is an ample choice among NBFCs, commercial banks, P2P lending forums, and reputed platforms offering short-term loans.The personal loan interest rate depends on the various criteria. One can apply for personal loans from leading NBFCs, these institutions somehow flexible as compared to banking institutions. Hence, it is important to compare the lending aspects of competent lenders and make an optimum choice.
Necessarily Check The Interest Calculation Method
Occasionally, the borrower fails to check the method of interest computation and falls into the trap of hidden charges. The method of calculating interest varies from one lender to another. Merely a low rate doesn’t mean a lower amount of interest. One should carefully check the technique of calculation to properly infer the actual interest amount. In addition, choose your EMI policies appropriately, it helps in maintaining a stable financial route.
At the end of the day, consider all aspects of the lender before applying for a personal loan. Apart from it, also consider miscellaneous processing charges and taxes. In general, there are several reasons for taking the personal loan, remember under any circumstances, the payment of the loan has to be done. Well,the above-mentioned ways surely help you in getting a low personal loan interest rate, and consequently reduce the extra debt burden.
