The best way to save your money is to opt for a low-rate loan. Here are proven six ways using which you will be able to obtain the loan at a lower interest rate.
1. Meet the eligibility criteria of the lender Eligibility is one of the most important factors that help you to get approved for a personal loan easily. If you meet the desired eligibility criteria set by the lender, the chances of your loan approval would be much higher. Therefore, before applying for a loan, you need to check your eligibility first and then apply. Here are the basic personal loan eligibility criteria to get an online loan:
2. Maintain a good repayment history You should have a good repayment history to get unsecured loan at a lower rate. To maintain that, try to pay your credit card bills and loan EMIs always on time. If your repayment history is good you have a better chance to negotiate for the interest rate with the lender. 3. You should have a good credit score Credit rating is one of the most important factors that influence your ability to get a loan at a low rate. Before sanctioning you a loan, your lender will evaluate your credit score to gauge your creditworthiness. You should have a credit score above 750, it will more likely to increase your loan approval chances and will also help you to get the loan at a low-interest rate. You can maintain such kind of a score by keeping your credit utilization ratio within the 30 per cent limit, reviewing your credit reports regularly and by maintaining a mix of both secured and unsecured loans. 4. Maintain a good relationship with your lender The kind of relationship you maintain also holds importance when you apply for any credit. If you are a loyal customer and you have maintained a good relationship with them, your lender is more likely to offer you a loan at a relatively cheaper interest rate and better service terms due to your pre-existing relationship. 5. Compare offers from multiple lenders Before applying for an unsecured loan, you should always try to cross-check and compare the rate of interest offered by the various lenders online. In-depth research will help you to get a loan at a low rate of interest along with the best features. 6. Apply for the loan during the festive season The banks and NBFCs launch attractive schemes during the festive season, try to apply for the loan at that time to save your money. So, if you are planning to apply for a personal loan to tackle your immediate financial expenses, keeping the above-mentioned ways in your mind will help you to get the best personal loan interest rate easily.
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The personal loans are considered as the most viable means to meet all the financial requirements. The loan amount can be used for any reason as per your need be it is your wedding expenses, educational fees, medical expenses, or any kind of emergency expenses. With the help of the best personal loan offer, you can make urgent payments with ease. It is the most sought-after loans in the financial market if you get considerable interest rates. Here are the tips through which you can the best personal loan rates:
Having a good credit score: When you are going to apply for a personal loan, you must ensure that you have a strong credit history and report. Any score above 750 is considered a good credit score, which will give you an upper hand when you make negotiations with the bank. To get the best interest rate on a personal loan, always try to build a clear credit history. For this, you need to review your credit report frequently. Prefer to avail of the benefit of Seasonal offers given: Financial institutions give seasonal personal loan offers from time to time. Through these offers, you can get personal loan interest rates that are much lower than those regularly offered. Please keep in mind that these offers one can only be availed for limited periods. So, always keep an eye lender’s notifications you received either on your mail or through SMS. Always maintain a good relationship with the lender: A lender is likely to give the personal loan offers at much better interest rates, if you are a loyal customer. Customer loyalty is determined based on the relationship with the lender and your repayment behavior. A good relationship and payment history will always help you in increasing increase the chances of availing a loan in a hassle-free manner with the best personal loan interest rates. Prove professional credibility A financial institution always believes that an employee who belongs to a well-reputed company and earning a significant salary makes for a great loan-candidate. Thus, if you work for a reputed organization, you can use this to get a personal loan with attractive interest rates. Apart from following the above tips, always try to make a conscious effort for building up your credit score by following tips:
Read more - Best Personal Loan Interest Rates in India India is changing along with the evolving mindsets, practices, and habits. For example, today, taking a loan is no more a taboo. Young individuals take a loan for a variety of purposes such as studying abroad, financing holidays, renovating their houses, buying a car, and for their weddings! To fulfil this growing demand, many organizations have begun to offer instant loans online to fuel the dreams of the ambitious people of today through the introduction of instant loan apps. Online loan apps in India are slowly becoming popular due to the many benefits they offer – customized repayment plans, cheap credit, simple application methods, and 24X7 tracking. Multiple instant loan apps in India today offer a quick, paperless, and trouble-free way to get quick access to funds to make a dream come true during a financial emergency. So, why should you use an online instant personal loan app?
Instant personal loan apps provide a quick way to apply for loans, anywhere, and anytime. Before this era of apps, one of the biggest challenges remained to visit a bank to obtain relevant information first, and then visiting again to apply for the loan. However, with instant online loan apps, not only can you know about different loans on offer, but you can also apply for an online loan instantaneously from the comfort of your home. Besides, you can also monitor the progress of your application. Of course, you will also be able to view the details once the loan has been approved. Here are some of the biggest benefits of using an instant loan app:
Documents required while applying through Instant loan apps You need the following documents to apply for a personal loan through an instant loan app-
Bottom Line There is the availability of several personal loan apps in the market that makes your overall loan application process hassle-free and secure a low-income personal loan. But before choosing the one, make sure you go through the terms and conditions carefully so that there is no scope for misunderstandings and mistakes that may cause hardships later. Fintech means financial technology and its existence has gained much popularity in recent years. It enhanced the entire process of applying for a personal loan and made it quick and hassle-free for the people. The best part about FinTech is that they are not only restricted to work for only bank personal loan, even if you are employed in a start-up that is not listed in the database of the big banks, it will approve your application for NBFCs also on being satisfied with your credit profile. Checklist for getting a personal loan from Fintech Companies
Age: The borrower’s age should be between 21 years to 55 years to apply for a loan. Income Requirement: As per Fintech lenders, the borrower should earn at least 15000 per month. Employment: The borrower should be employed for a minimum of 2 years to get an online personal loan approval. In other words, the job stability of a borrower should be good. Documents required: As compared to the traditional mode of applying for a bank personal loan, documents required by Fintech company for applying for a loan are less; it includes PAN Card, Aadhar Card, Bank Statement and photograph. All need to be uploaded online. Credit Score: Fintech lenders only gives personal loan approval if the credit score of a borrower is 700 and above. Repayment History: Fintech lenders also check the creditworthiness of the borrower that how well it is managing the finances. It is done by checking the repayment history of the borrower if any, good is the repayment history, easier is to get the loan. Factors that make Fintech’s working the best! Instant Approval: By using risk- assessment algorithms, FinTech companies evaluate the credit profile of the applicant by going through with the credit report of the applicant. It results in giving a quick approval or rejection of the loan applications. Once the loan is approved, disbursal will take place in a matter of minutes. The online personal loan processing is quick of the FinTech’s. Online Verification Fintech made its loan application process digital so the verification process also. It not restricted to only online loan applying, but it moves further with the uploading of the scanned documents to get an online verification done. It saves both the time and effort of the lender and the borrower. Quick verification means quick disbursal. Flexible Tenure and loan amount: FinTech companies give you even short-term loans starting from Rs 20,000. The minimum tenure for short term loans is 12 months and the maximum tenure is usually set as 60 months. FinTech companies give many other options apart from bank personal loan. There are many NBFC’s also that are dealing with personal loans. Fin Techs connect well the borrowers with them by sharing the credit profile. It is one of the main features of FinTech companies which attracts borrowers. FinTech’s have made a strong reputation in the banking industry. If you are looking for an instant personal loan, it would be the best place. |