A personal loan is one of the best alternatives when it comes to finding the resort to cover your needs without pledging security or collateral.
Despite a personal loan being so common, many people don’t apply for it even when they have the eligibility. Why? It is because of the uncensored nature of the loan, which means that the lender asks for higher interest rates.
This way, the overall EMI payable may not be under the reach of everyone to afford.
But wait, you don’t need to worry as you can enjoy securing the low interest personal loan by following a few tips. Read on!
- Check the exact interest being calculated on a loan amount
You may calculate the personal loan interest rates manually if you are aware of the rate of your lender. Still, there may be some scope of manual errors, and it may not give you an exact picture., Therefore, the best thing would be using the personal loan interest rate calculator on a lender’s website and know the precise amount payable on a loan amount. Based on this, you can increase or decrease your loan amount as per your affordability so that the ensuing EMI does not affect your monthly expenditures.
- Have you maintained a clean repayment history?
Applicants who have never defaulted on ongoing debt repayment are going to get the benefit of that in the form of a low interest personal loan. Maintaining timely payments come what may, helps you being in a better position to strike a low cost deal with your lender.
- Shop around for the best offer
While you may see your application getting approval by the first lender, it is not wiser to go for it if you want to enjoy lower interest rates on Online Personal loan. How? You can simply compare all available offers on a third-party website to apply for one that matches your needs and repayment capacity.
- Maintain a strong credit score
Your Credit score is the mirror of your creditworthiness that lenders check while processing your loan application to know if you are a responsible applicant or not. People having a higher credit score of 750 or more not only get the loan approval fast but even may be rewarded with lower personal loan interest rates. You can maintain a robust credit score by making timely payments towards your loan EMIs and other bills.
- Approach a lender you know
The next step that can help you access a lower personal loan interest rate is approaching a lender that you have a past relationship with. Yes, it could be the banks you have your Salary account/savings account/loan account or credit card account with. Negotiate with such lenders for giving you the low interest personal loan. They would definitely not like to lose an old customer like you. Hence, they may let you enjoy a lower rate of interest on the personal loan.
- Make the most of your employer’s credibility
In case if you work for a reputed Company and draw a higher income, then it can be a factor for the lender to award you with a lower interest rate on the personal loan. It may be on the basis of the factor that you will find no issues in repaying the debt on time.
You should take into account all the discussed elements that may help you avail lower personal loan interest rates so that you can cover your needs and still pay lower EMIs.