Whenever we are in urgent need of cash, the only investment we resort to is personal loans. They are disbursed instantly and require minimal documents.
A personal loan comes handy not only during emergencies but also for other kinds of financial purposes. However, before applying for the right kind of personal loan, you have to check the interest rates offered by different banks. Although most of the banks follow the same personal loan interest rate, you can avail of exclusive discounts on the rates depending on your profile.
How can you get the best interest rate on a personal loan?
1) Credit score: If you have a clean credit history and a decent score, somewhere between 700 to 900, the chances are that you can acquire the best personal loan for a lower interest rate. You can manage your credit score if you make your remaining financial payments on time
2) Repayment track record: The repayment factor for other loans also plays a crucial role as well. If you have a decent payment track record, you will be in the right position to negotiate on the personal loan interest rates with your lender
3) Seasonal offers: During festive seasons, banks offer lucrative deals to match up to the rates offered by other banks. Since these interest rates are offered during special occasions, they last for a limited period only. It is advisable to take up a personal loan during such times
4) Interest calculation method: Understand the loan calculation process before opting for a low-interest rate personal loan. Some calculations do not involve gradual repayment of principal and interest amount
5) Relationship with the bank: If you have an excellent relationship with the bank, you can get discounted interest rates on personal loans. Some banks offer such deals to retain their customers, be it old or new. Another advantage here is that banks know about your credit behaviour. That acts as a reassurance for the loan providers
6) Job value: Banks also are favourable towards customers who work in top-end companies. It speaks volumes about their job stability and regularity of income. Some of the banks are also tied up with corporate companies. So, if you work with any such organisation, you might receive discounted interest rates often
Apart from the above hacks, you can take the effort from your end as well to avail of the best personal loan:
1) Ensure there are no debts by paying off your loans on time
2) Work towards improving your credit score as a poor CIBIL score can lead to rejection of your loan
3) Avoid taking back-to-back loans
4) Use your credit card in a healthy manner
A personal loan comes handy not only during emergencies but also for other kinds of financial purposes. However, before applying for the right kind of personal loan, you have to check the interest rates offered by different banks. Although most of the banks follow the same personal loan interest rate, you can avail of exclusive discounts on the rates depending on your profile.
How can you get the best interest rate on a personal loan?
1) Credit score: If you have a clean credit history and a decent score, somewhere between 700 to 900, the chances are that you can acquire the best personal loan for a lower interest rate. You can manage your credit score if you make your remaining financial payments on time
2) Repayment track record: The repayment factor for other loans also plays a crucial role as well. If you have a decent payment track record, you will be in the right position to negotiate on the personal loan interest rates with your lender
3) Seasonal offers: During festive seasons, banks offer lucrative deals to match up to the rates offered by other banks. Since these interest rates are offered during special occasions, they last for a limited period only. It is advisable to take up a personal loan during such times
4) Interest calculation method: Understand the loan calculation process before opting for a low-interest rate personal loan. Some calculations do not involve gradual repayment of principal and interest amount
5) Relationship with the bank: If you have an excellent relationship with the bank, you can get discounted interest rates on personal loans. Some banks offer such deals to retain their customers, be it old or new. Another advantage here is that banks know about your credit behaviour. That acts as a reassurance for the loan providers
6) Job value: Banks also are favourable towards customers who work in top-end companies. It speaks volumes about their job stability and regularity of income. Some of the banks are also tied up with corporate companies. So, if you work with any such organisation, you might receive discounted interest rates often
Apart from the above hacks, you can take the effort from your end as well to avail of the best personal loan:
1) Ensure there are no debts by paying off your loans on time
2) Work towards improving your credit score as a poor CIBIL score can lead to rejection of your loan
3) Avoid taking back-to-back loans
4) Use your credit card in a healthy manner
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