Despite having personal loan eligibility, many people still don’t want to get personal loans owing to a higher interest rate. Yes, personal loan interest rates are on the higher side to avoid the risks of possible defaults.
But if you want some considerable amount to cover different needs, you can still get personal loan at a lower rate. Read on and know ways you can do that!
Maintain a good credit score
The first thing that can help you get the personal loan at a lower rate is maintaining a good credit score. It is ideal to have a higher CIBIL score to get loan approval faster and at a lower rate of interest. Hence, you should check CIBIL score for personal loan approval beforehand. If your credit score is 750 or more, it denotes that you have paid your EMIs and other bills on time. Lenders may consider you an ideal loan candidate and may approve your application at a lower rate.
Compare the offers of different lenders beforehand
While looking to get personal loan for your different needs, you may come across many loan offers from multiple lenders. It may confuse you which one to select and not. But to enjoy affordable personal loan interest rates, you can do one thing which is to compare all lenders on a third-party website and pick an offer best suiting your needs.
Maintain a good repayment record
Another way to avail lower personal loan interest rates is by maintaining a healthy repayment record. If you have a clean record for past and existing loan EMIs and credit cards, then a lender may consider you loan ready. Thus, when you wish to get personal loans online, you should ensure not defaulting on any loan and other EMIs.
Get an idea about exact personal loan interest rate charges
Before applying for the online personal loan, you should get an idea about the precise interest rate charges beforehand. You may find it tough to do that manually. It is because it may contain errors. Hence, you may be unable to arrive at the exact charges. The best way to do that would be using the personal loan calculator for EMIs. The tool can display an exact loan amount, along with interest charges and total loan cost. If you are aware of the precise loan charges, you may increase or decrease the loan amount.
Keep necessary documents handy
The prospective borrowers also need to carry important documents required while applying for a personal loan. Regardless of the reasons to take a personal loan, individuals need to submit those documents to complete their eligibility criteria and avail the credit necessary. It includes.
- KYC documents
- Financial documents
- Proof of employment.
Along with that, they may also need to submit other additional documents as and when the need arises.
Apply for the personal loan with a known lender
If you want to get a personal loan at a lower rate of interest, you can also try applying with a known lender. Why? It is because the lender already knows your financial profile well; it may sanction the loan request at an affordable rate. In turn, it may help you to repay reduced EMIs, and manage other expenditures in the month smoothly.
If you are employed with a known company, you can also use your employer’s credibility to negotiate for a reduced interest rate. By considering these aforementioned tips, you can surely help yourself getting lower personal loan interest rates.
Bajaj Finserv offers pre-approved offers on personal loans, home loans, and more. It is to make the loan processing simpler and faster.
You can share your basic details like the name and mobile number to check your pre-approved loan offers today.