Getting Personal Loans at Low Interest Rates Explained

Getting a personal loan is one of the best ways to meet your urgent financial needs. Since there's no restriction on the end usage of the funds, you can use them for various purposes such as funding your higher education plans, financing a wedding, planning a trip or meeting an unexpected medical emergency. But your personal loan has to be affordable, i.e. it has to be a low interest rate loan as well. Here are four tips you can adopt to increase your chances of qalifying for a low interest rate personal loan:

1.Strengthen Your Credit Score

This is the first and most important thing you need to do to qualify for a low interest rate loan. Your credit score is a measure of your creditworthiness, which is the first thing your personal loan lender will check after receiving your loan application. Typically, a credit score of 750+ is considered healthy by banks and financial institutions, though some lenders even accept 700. Ensure the timely repayment of your existing debt, and don't make any new credit inquiries until you've cleared all your current loans. The higher your credit score, the better the terms on your personal loan.

2.Shop for the Best Low-Interest Lender

Suppose you want to get an affordable low interest rate loan from India's best personal loan lender. In that case, you must research and shop around first. It would be best if you compare personal loan offers from several lenders based on several factors – their interest rate, the loan amount they're offering you, processing fee, and other charges. Only if you do this will you know which lender is best suited to fulfil your low-interest loan requirements. Once you find such a lender, you can check your eligibility for a personal loan and apply for the same.

3.Take Advantage of Offers & Discounts

Another way of ensuring that your loan is more affordable is by using offers/discounts wherever possible. If you've already signed up for a low-cost personal loan before, check your inbox for updates from your lender(s). If they have any offers or discounts going on, they'll send you an email. Apart from festive offers around Diwali, other common offers include reduced interest rates, discounts on processing fee, waiver of pre-payment charges, etc. If you can take advantage of such offers, your low interest rate loan will become even more affordable.

4.Leverage Your Professional Qualifications

When you apply for a low-cost personal loan, the first thing your lender checks is your repayment capacity. The reassurance that you'll be able to repay your loan EMIs on time is what's essential for them. In this regard, you can leverage your monthly income and professional qualifications to qualify for a low interest rate loan from your lender. If you work for a reputed organisation or draw a relatively higher salary, communicate this to your lender. This information will make you a stable borrower in their eyes, and they'll be confident about your repayment capability.

Wrap Up

If you follow the four points mentioned above, it shouldn't be too difficult for you to qualify for a low interest rate loan. Just ensure that you do thorough research before selecting your lender to end up with an affordable loan offer that meets your requirements. 


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