A personal loan is a collateral-free loan taken out for personal reasons that is typically offered with minimal documentation. It is a great way to address urgent financial needs such as a medical emergency, home renovation, a child’s education abroad, a wedding, etc. But while a personal loan takes care of current financial requirements, it isn’t always easy to repay, particularly if the interest rate is high. Paying back the loan, however, becomes far easier if the loan has a low interest rate. Here are five valuable tips to get the most competitive interest rate on a personal loan:
i) Improve & Maintain a Good Credit Score
A good credit score – above 700 or 750 – is essential as lending institutions and banks typically decide on loan amount, repayment terms, and interest rate on the basis of your credit score. The higher your credit score, the better you can negotiate and qualify for a lower interest rate. It is therefore important to boost your credit score and history by repaying any outstanding loan before or on time and making timely payments for credit card bills.
ii) Utilize Your Professional Credentials
Your professional credentials matter. If your income is high, you are deemed more capable of making regular loan payments by the lender. This increases your odds of having a loan approved at a better interest rate. Likewise, a bank or lender considers you financially stable if you are an employee of a reputed public or private sector organization. This could help you get a lower interest rate on your personal loan.
iii) Look out for Seasonal Offers
Attractive interest rates are occasionally offered by banks in order to have an edge over competitive rates being offered by other banks. These lucrative schemes are commonly launched during the festive season and last only for a short limited period. Keep a lookout for these special seasonal offers through netbanking as well as SMS and email. Availing of such offers can help you cut down substantially on your loan repayment expenses.
iv) Build a Good Banking Relationship
If you are an existing, responsible customer of your bank and have maintained a good relationship with it over the years, you may be able to avail a discounted interest rate on your personal loan. Typically, in such cases, if you have responsibly managed your savings accounts, repaid your credit card bills, and opened fixed deposits at the same bank, it acts as a reassurance while furnishing a loan as the lender is familiar with your good credit behavior.
v) Compare Interest Rate Offered by Various Lenders
Invest in some research before applying for an instant personal loan. Compare the interest rates offered by various banks and lending institutions and go for the one offering the most attractive interest rate. Though this may be slightly time-consuming, it will help you pick the best option. Additionally, look for other features such as minimal documentation, paperless application procedure, flexible loan tenure, and speedy disbursal of funds.
Looking for an instant personal loan? Opt for Indus Easy Credit Personal Loan by IndusInd Bank. With a host of customer-friendly features such as personalized loan offers based on individual details, simple documentation, flexible loan tenures ranging between 1-5 years, and attractive personal loan interest rates, this is a great option for those in need of urgent funds. Additionally, it involves just an easy, four-step 100% online application process, giving you the freedom to avail of a personal loan at the click of a mouse, from the comfort of your home. Get a personal loan, apply today!