For decades now, personal loans have been one of the best means for people to meet emergency or unexpected liquidity requirements. People usually take personal loans to fund higher education, weddings, medical emergencies and vacations.
The perfect thing about personal loans is that they do not require any collateral or security. They also happen to need minimal documents, so the entire procedure of getting a loan is relatively quick and free of hassles. Personal loans do, however, have an interest rate imposed. So, you need to repay the money you have borrowed along with the interest levied on it.
The amount of cash you can borrow, and the interest rate applied to this amount depend on a few factors. The factors are your age, income, credit score, occupation, the stability of your job, etc. Your type of occupation will also affect the documents required for the loan disbursal.
Now, no one wants to take out a loan with an extremely high interest rate. So, here are a few of the best and easy ways you can get low personal loan interest rates in India.
- Have a good credit score
A crucial determinant behind the approval of your loan application is your credit score. No lender would want to lend money to a person that has a low credit score as the person will be deemed as a risky applicant. So, try to have a credit score of 750 or above. This will show you to be a good candidate at repaying loans and increase your chances of getting a loan.
To do so, simply try to repay any other loans you might have taken in the past. This includes your credit card bills as well. Also, avoid trying to take out multiple loans simultaneously since it ruins your image in your credit report and labels you as a risky candidate.
- Try getting a reducing interest rate as opposed to a flat interest rate
The difference between a flat and reducing interest rate is significant. A flat interest rate is calculated on the entire amount of money you borrow. A reducing interest rate is calculated on the amount of outstanding money, and the interest money falls as the outstanding money falls. Usually, flat interest rates are lower than reducing interest rates. However, flat interest rates will cause you to pay higher amounts of money than lowering interest rates. Hence, always try to get a personal loan with a reducing interest rate.
- Look out for offers
Lenders, such as Banks, usually send automated texts to people and inform them about new promotional offers with low-interest rates. Keep a lookout for these offers since they typically have a deadline and are limited. These offers can help your best personal loan be more affordable for you.
- Compare lenders and their offers
As different lenders have different rates, you should compare them to find the best fit. Making comparisons will allow you to find the best deal for yourself.
Getting a personal loan at low interest rates in India will not be too difficult. Just keep the tips listed above in your mind, and you will be able to get a loan within no time.
Pre-approved offers are available on a variety of Bajaj Finserv products, including personal loans, home loans, and credit cards. By entering your name and contact information, you can check the offer for yourself.