APPLY FOR PERSONAL LOAN AT FEASIBLE INTEREST RATE

APPLY FOR PERSONAL LOAN AT FEASIBLE INTEREST RATE

APPLY FOR PERSONAL LOAN AT FEASIBLE INTEREST RATE
Meta: Follow some tips and tricks to get the best personal loan rate of interest.
Having issues with the lengthy medical bills? Hate how your savings account doesn’t
have enough for the brand-new MacBook in the market while you want to run your
fingers through the conveniently small keyboard and work at a lightning-fast speed to
keep up the hustle? Don’t be downhearted and breathe a sigh of relief, as banks and
financial institutions are extending personal loans at low interest rates for this very
purpose. Personal loan application is uncomplicated, and one can effortlessly have it
approved at a lower than usual personal loan rate of interest. It is the best financial
instrument that can take you through a sea storm of financial crisis, you still have to be
cautious while applying and pay attention to every detail else you’d drown into debt.
There are numerous banks and financial institutions that offer personal loans with
interest rates as low as 7.90% per annum to as high as 49% per annum. Therefore, you
must do enough research before applying for a personal loan concerning which loan
scheme best suits you and your financial condition.
If you are availing a personal loan, the following tips can help you acquire it at a cheap
personal loan rate of interest:
● Compare Loan Schemes: In order to avail a personal loan with competitive
interest rate, you must compare the different loan schemes available in the
market. You must consider factors such as urgency, convenience, processing fee
with the GST, maximum loan amount, loan tenure, prepayment fee, part payment
fee, disbursal fee, EMIs, charge on outstanding EMIs and obviously the interest
rate.
● Improve Your Credit Score: Your creditworthiness is determined by your credit
score. Higher your credit score, the better are your chances to get a loan at a
cheaper interest rate. Banks and financial institutions fancy and prefer
applicants with credit scores of 750 or higher. If you have a credit score below
750, you must start looking for ways to improve it. You can improve it by
reducing your credit usage, don’t use more than 30% of the limits and even if you
are not using your older credit cards, keep them open.
● Clean Up your DTI Ratio: The debt-to-income ratio indicates how much of your
monthly income is going towards the repayment of your previous debts. You can
calculate your DTI Ratio by summing up all of your existing EMIs and dividing it
by your gross monthly income. If your DTI is greater than 40, you must not push
yourself towards another loan as it might lead you into a debt trap.

● Avoid Missing Repayments: With every missed credit card or loan repayment,
your credit score experiences a downfall. Loan providers often take the
repayment history into account before settling down at an interest rate for the
loan you have availed for. Applicants who have paid off their credit card bills and
EMIs on time are provided with cheaper interest rates.
● Keep an Eye Out for Offers: Just like other commercial institutions, banks and
other financial institutions hold up special offers on loan plans during festive
occasions. You are bound to get a lower personal loan rate of interest during
such seasons.
● Negotiate with the Lender: If you are an existing customer of the bank and share
a good relationship with them, you can easily negotiate your way into the loan
scheme by submitting a formal written request to the loan provider.
CONCLUSION:
These are basic tips to secure a personal loan at relatively lower interest rates. Though,
the above mentioned tips majorly revolve around the basic eligibility criteria required.
You might not end up with the best interest rate by simply following the basics, you
must put more work into it. Choose your loan amount wisely by calculating your EMIs in
advance and avoid submitting multiple loan applications, no matter how desperate you
are for the funds as the banks would study your financial history in detail, put forth a
hard enquiry and it might adversely affect your credit score in future. Somehow, if you
perceive that your profile isn’t strong enough you can add on a co-applicant or even
provide an additional income source on the form. These tips and tricks would assure
you a great personal loan rate of interest.

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