Most salaried professionals rely on personal loans to meet financial emergencies. A personal loan is used to finance big expenses like weddings, higher education, medical surgeries, etc. Moreover, there are various banks that provide loans at various interest rates. Therefore, you can apply for a loan with the best personal loan interest rate to fulfil your financial requirements.
The EMI calculator for a personal loan shows you the best deals. Moreover, this tool educates borrowers about the instalments they need to pay within the loan tenure. However, it is crucial to consider the personal loan interest rate before taking a loan because it is a major factor that influences loan EMIs. In addition, borrowers can take certain measures to get the best loan interest rate.
This blog explains the best practices that help get the best deals for loans.
Maintain a Timely loan payment Behaviour
The loan provider not only focuses on your credit score but also seeks your loan payment history to determine your creditworthiness. Moreover, borrowers with good payment history have better chances of getting a low loan interest rate. Lenders generally prefer those borrowers who do not have any default history in the past 12 months.
While approving a loan to a defaulter, the banks charge a hefty loan interest rate to minimise their risk factor. Therefore it is crucial to follow a disciplined loan repayment to increase your personal loan eligibility chances.
Improve your CIBIL score
A borrower with a credit score above 700 has increased chances of negotiating with the lender and getting approval at a low loan interest rate. However, this score is backed by excellent credit payment history. A high credit score assures the lender that the borrower will repay all the loan instalments on time. Therefore, borrowers need to improve their credit scores by practising timely payments of credit cards and loan EMIs.
Establish Good Relationship With Your Bank
Banks quickly approve the loan applications of their loyal customers. Therefore, borrowers need to open and manage their savings and fixed deposit accounts. A good relationship with the bank increases personal loan eligibility and also helps in getting the lowest loan interest rate.
Compare Personal Loan Interest Rate of Loan Providers
All the banks provide varied personal loan interest rate for similar principal amounts. Therefore borrowers need to compare the interest rates carefully and select the one that is feasible for them. In addition, several banks offer a digital loan application process. Therefore, eligible borrowers can choose to apply online and get instant disbursal.
Use the Professional Credentials
Salaried employees can get huge benefits by using their professional credentials to get competitive personal loan interest rate. In addition, borrowers with higher income are generally preferred by lenders because they carry a low risk of making a payment default. Therefore, the probability of getting approval for a low personal loan interest rate increases.
Apart from the salary of an employee, lenders also seek to know the organisation where the borrower is employed. A reputed company reflects employment safety, and this increases the personal loan eligibility of the borrower.
Keep Checking Bank Offers
Loan providers often launch special offers for personal loans on occasions like New Year, Diwali, Independence Day, etc. Moreover, in these offers, the lenders slash their personal loan interest rate to attract more borrowers. Therefore, it is necessary to keep an eye on these offers to get the best deals to meet your financial requirement.
Personal loans are a great way of dealing with sudden financial crises or fulfilling a planned monetary requirement. However, the lenders generally charge high-interest rates on these loans. Therefore, it is necessary to take the necessary steps to get the best loan interest rate. Moreover, borrowers must also use a personal loan calculator to ensure their capability to pay regular EMIs within the loan tenure.