Whether you come across a sudden medical emergency or you wish to go on a planned vacation, the need for some extra cash is quite common. At such times, a personal loan proves to be of great help. You can apply for the personal loan and get it approved quickly, provided you have the eligibility and documents for it. However, it is also quite important for you to get the lowest interest rates on a personal loan. An unnecessarily high-interest rate will lead to an added financial burden and you may find it difficult to repay the loan. So always look for the best personal loan interest rate.
If you are unsure as to how you can do so, take a look at the top five tips we have for you:
1) Improve your credit rating:
Anyone who has a high credit score can get an affordable personal loan interest rate. This is because a high credit score puts forth your financial discipline and shows how well you manage your money. So if you have a credit score lower than 700, work on it and improve it. Clear your outstanding bills and EMIs. Pay off your existing loans. Such actions would help improve your credit rating and thereby allow you to get a personal loan at a lower rate of interest.
2) Compare the available options
Rather than settling for the first option you come across, run a comparison and locate the best lender. The different loan providers offer personal loans at different interest rates. Unless you compare, you won't know what your best option is. Also, NBFCs like Bajaj Finserv offer some of the best personal loan rates. So run a quick online comparison and you will surely find the personal loan at the best possible interest rate.
3) Watch out for deals and offers
During major festivals such as Diwali and Christmas, personal loan providers offer deals and discounts. Watch out for these offers and try to apply for your personal loan at a favorable time. The banks and NBFCs notify their customers about these loans via emails or text messages. Subscribe to your preferred lenders’ mailing lists and stay informed about every offer. Also, remember to keep the required documents ready, So that you can apply for a personal loan as soon as the offer is floated.
4) Cash in on your professional status
A person who stably occupies a high position in a reputed firm is usually seen as a financially sound person. Lenders prefer such people to do business with. If you have such an occupation to boast of, make full use of it and get your personal loan at a lowered rate of interest. You can use a personal loan eligibility calculator to find out the rates you are eligible for based on your professional standing.
5) Apply for a short-term loan
Loan providers always look to get their money back at the earliest. The risk is always higher when the loan remains open for a long. As a result, lenders always prefer short-term loans. If you opt for a short loan tenure you will, in all probability, get the personal loan at a lower interest rate. It must, however, be noted here that your loan period should not be so short that your EMIs become unreasonably large. Opt for a loan period that is short yet economically viable for you.
The bottom line
Keep the tips mentioned above in mind. You will surely be able to get your personal loan at an attractive interest rate. This will help you to repay the loan in a more economical manner. So take the personal loan if when you need some extra funds, but make sure you get a good deal.
