How to Get the Best Interest Rate on Your Personal Loan?
An instant personal loan can reduce your immediate financial stress by providing liquid funds right when needed. But you will need to repay the loan as EMIs by the end of the loan term, and interest forms a major component of it.
The loan amount and interest rate determine the total interest payable, which means the lower the interest rate, the lower the total EMI amount. So it is no surprise that most borrowers prefer a lender offering a lower interest rate when they apply for a personal loan.
But how do you get the best interest rates on your personal loan? Read on to find out.
Four Ways to Get the Best Personal Loan Interest Rates
1. Compare Interest Rates Offered by Different Lenders Before Applying
Lenders typically offer quick personal loans online at different interest rates. Even the slightest difference in the interest rates available can significantly impact the total cost of the loan. So, do your research well and choose a lender offering an affordable interest rate at terms that are comfortable to you.
2. Maintain a High Credit Score
Found a suitable lender but want a lower interest rate? Make sure you have a high credit score.
Most lenders look at your credit score to determine your creditworthiness before approving a loan. A high credit score reflects lower chances of defaulting on loan repayments. Hence, lenders are more willing to offer better loan terms if you have a high credit score. They not only offer better interest rates but also approve personal loans instantly.
3. Have a Stable Profile
Lenders always want to maximise their chances of getting timely loan repayments. So, they are willing to offer better terms like personal loan instant approval and lower interest rates to borrowers who won’t default on repayments. Having employment stability gives such surety to the lender.
If you draw a high monthly salary and work for a reputed company, lenders see you as a stable applicant. With the regular income, lenders believe that the chances of defaulting on EMI payments are quite low. This gives you the power to negotiate the personal loan interest rates. Not to mention, online personal loan approvals get easier too.
4. Apply During Seasonal Offers
Don’t need funds urgently? Then wait for seasonal offers to get the lowest personal loan interest rates.
Subscribe to different lenders to get notified about the latest festive season deals and offers. Once you do this, lenders will inform you about the latest offers via call, message, and email. You can compare the different offers, choose the best one and apply to get a personal loan instantly.
Keep in mind that most seasonal offers are for a limited period and are available when you apply for a personal loan online. So, keep an eye out to get the most out of them.
Over to You
The above tips can help you get the lowest personal loan interest rates. And when in urgent need of funds, check out the personal loans offered by IndusInd Bank. With a flexible loan tenure and convenient repayment terms, you can pay off your loan EMIs comfortably without dipping into your savings. The best part? Thanks to the lower interest rates, the total interest outgo on your personal loan is also reduced, and you save more funds too!