7 Tips to Avail a Personal Loan at a Lower Interest Rate

"Discover personal loans at lower interest rates from top banks. Apply online for low-interest personal loans and secure your financial future."

4 mins read

Published: 3 August 2023

Updated: 20 September 2023

Banks and NBFCs are providing personal loan at lower interest rate to people who have passed the eligibility criteria set by them. Personal loans are the type of financial aid provided by banks and NBFCs to people who are facing financial difficulties. A person can apply personal loan online to quench the financial need of day-to-day life. You can apply personal loan either from the bank's portal or through a physical process. However, it is convenient to opt for the online personal loan process to make it hassle-free.

Low interest personal loan is offered to a person who has a CIBIL of more than 700, stable employment, banking, and consistent income proof. The basic requirement for apply personal loan online or offline is to have excellent CIBIL, Income above 20000, stable employment proof in a company for more than 2 years, and KYC Documents. A borrower can upload these documents and get to know the eligibility for a personal loan instantly. Check your CIBIL Score before apply personal loan online to avoid rejection.

Personal Loan Interest rate

Banks and NBFCs are providing personal loans at different rates of interest depending upon the eligibility criteria set by them for personal loans. The personal loan low interest rate bank and NBFCs provide start from 10.25% P.A. The low interest personal loans can help you to be financially stable without hurting your pockets and disturbing your savings. A personal loan at lower interest rate means that you need you shall be paying less amount as interest and this can help you to repay your loan quickly by paying the maximum principal amount.

Apply personal loan online through My Mudra by filling in the form and submitting it. Get your personal loan approved in no time, give a look at the interest rate personal loans offered by the banks and the NBFCs.

Here is the table describing the top banks and the NBFCs providing personal loans at respective interest rates.

Bank

Rate of Interest

HDFC Bank

10.25%

IndusInd bank

10.25%

Standard Chartered

10.75%

Axis Bank

10.99%

Kotak Mahindra

10.75%

 

Amazing Hacks to get Personal loan at lower interest rate

The interest rate on which the loan shall be approved is the crucial factor hence, the borrowers should be paying attention to it. You can get personal loan at lower interest rate if you know the top tips.

1. Maintain a Good Credit Score

A strong credit score is crucial for getting personal loan at lower interest rate. To maintain a credit score make sure you pay your bills on time, keep credit card balances low, and avoid opening multiple new credit accounts. Your Credit Score shall be reflected in three months, so your timely repayments will take three months to make a good credit score. Check if your credit history has no glitches, it is error-free before apply for personal loan online or offline.

2. Comparison Shopping

Don't settle for the first offer you receive. Shop around and compare personal loan offers from different banks and NBFCs to find the one with the most favorable interest rate and terms. Personal loan low-interest rate banks and NBFCs can be found all over the internet, surf and choose the lender which is offering low-interest rate personal loans and has favorable terms and conditions. Also, save yourself from fraud, do not apply personal loan online on websites and lenders that you do not have knowledge of and cannot trust for taking financial aid.

3. Shorter Loan Tenure

Opt for a shorter repayment period if you can afford it. Banks and NBFCs offer low-interest personal loans for shorter-term loans as they perceive them to be less risky. You can even check the EMIs that you shall be paying through the loan tenure. After checking the EMIs you can make a loan

4. Lower Debt-to-Income Ratio

Lenders prefer borrowers with a lower debt-to-income ratio, which means your total debt compared to your income should be low. Try to pay off existing debts or reduce them before applying for a new loan. The ideal Debt-to-income ratio is 28% which means not more than 25% of your monthly income should go into repaying the debt.

5. Show Stable Employment

A stable employment history and consistent income demonstrate to lenders that you are financially responsible. Lenders are more likely to offer a lower interest rate to borrowers with a steady income source. A steady income means that you should be employed in a company for at least 2 years or more than that. While checking your eligibility for a personal loan makes the lender believe that you have the capacity to repay the loan without defaulting it.

6. Secured vs. Unsecured Loan

If you have valuable assets like a car or a property, you may consider a secured personal loan. Secured loans are low-interest personal loans because there's collateral involved, reducing the risk for the lender.

7. Negotiate with Lenders

Don't be afraid to negotiate with lenders to get a lower interest rate. Personal loan at lower interest rates is knocking at your door If you have a good credit score and a strong financial standing, you may be able to leverage that to secure a better offer.

Conclusion

With the advancement in technology now you can apply personal loan online. Online loan applications reduce the documentation and make it a transparent process. The documents required for Personal loans involve banking statements, income proof, KYC Documents, and a PAN card. This article is a small initiative for the borrowers to make them understand the tips to take personal loan at lower interest rates. The notifying fact here is that interest rates can vary based on several factors, and not all lenders will offer the same rates. It's essential to do your research and find the best lender that suits your financial needs and can help you in fulfilling your dreams.

Also read: Get your Personal Loan Approved with a Low CIBIL Score

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