Getting a personal loan in India has transformed into a matter of a few clicks as many lenders have shifted to offering a completely digital experience. Today, you can not only apply for a personal loan online but can also get approval and have the sanction disbursed without the need for any physical visits to the lender at all. However, apart from getting funding quickly, it is also important to know how to get a personal loan at a low interest rate. This way, you can reduce the cost of borrowing and enjoy a more comfortable repayment experience.
To help you get started, here are 4 ways to get a personal loan at low interest rate.
Maintain employment at a reputed organisation
Your employment or income history is also a factor that can help you get a better personal loan interest rate. When considering your application, lenders look into your employment history to determine whether or not you can maintain a stable income and thereby, repay the loan. Lenders also verify your employer’s credentials to further ascertain the stability of your primary income source. Any causes for concern in these checks may make you a risk to lend to and risk translates into a higher interest rate on the loan.
Take advantage of seasonal deals
A smart way to borrow on cost-effective terms is to wait for lenders to launch seasonal loan offers. These are usually available during holiday seasons or in the summer and can be quite beneficial to you. For instance, you may get a loan at a rate that is much lower than the standard rate offered during the rest of the year and this ultimately results in lower interest outgo as you repay.
Apply for a loan from a lender you’ve dealt with before
One of the easier ways to get a personal loan at a lower interest rate is to apply for it with a lender you have a relationship with. Lenders are more likely to consider negotiations made by existing customers as they have more financial information to work with. Further, many lenders also offer existing customers with exclusive deals and rates as a reward for their patronage.
Ensure you have a good CIBIL score
Your CIBIL score is important in determining your eligibility for a personal loan and it can also help you get a better deal on the interest rate. For instance, a CIBIL score of 750 or above indicates that you are a creditworthy, responsible borrower and that the risk in lending to you is minimal. As a result, lenders will be open to negotiations, which can lead to favourable terms. Further, a high CIBIL score indicates that your CIBIL report will also reflect a good repayment track record and a healthy mix of credit, both of which speak for your ability to diligently handle debt in various forms.
Employing these tips is sure to help you secure a personal loan in India at a lower interest rate. Another way to get cost-effective borrowing terms is to choose your lender wisely and only after conducting your own research. This way, you can identify lenders with the most competitive interest rates and also get access to other features and benefits. In this regard, the Bajaj Finserv Personal Loan is a worthwhile offering to consider as you can get access to a sizable loan amount at an attractive interest rate.
When you choose this loan, you can get up to Rs.25 lakh and can repay it over a flexible tenor ranging up to 60 months. Further, you can opt for the Flexi facility on your personal loan and borrow from your loan limit at any time, more than once, without making new applications. Here, you pay interest only on the amount you borrow and reduce your monthly EMIs by up to 45%. So, apply online for a Bajaj Finserv Personal Loan to get funding at a competitive interest rate and also enjoy instant approval within 5 minutes.
You can avail an instant personal loan without leaving your home