BackSmart insights to getting the best personal loan interest rate
Here are a few useful tips to follow to get the lowest interest rate on your personal loan.
PremiumPersonal loans are considered one of the best credit instruments for salaried individuals. They are specifically designed for people with a steady income who face immediate funds requirements for various reasons. You can avail yourself of an online personal loan at the best personal loan interest rates for medical emergencies, setting up a home gym, going on a vacation, and even covering wedding expenses.
Going for personal loans online is a convenient option as it also gives you the chance to use a loan EMI calculator. This handy tool helps you calculate your precise EMI amount for the loan amount you seek. An online personal loan allows you to use the disbursed amount you see fit. Another advantage of a personal loan is that no collateral is required. To get the best personal interest rates with lenders like Bajaj Finserv, you must ideally have a high CIBIL Score of 750 and above.
If you anticipate any extra expenditure soon, here are some tips that will help you get the lowest interest rate personal loan:
1. Compare interest rates
Check what interest rate your primary bank offers, and even if you find it satisfactory, check out the personal loan interest rates of other lending institutions. This will give you an idea about the ongoing market rates and allow you to make the best decision for yourself. You can also negotiate with your bank or financial establishment and ask for a lower interest rate. But your powers of negotiation depend largely on your credit score and history.
2. Floating vs. Fixed interest rates
Banks often compute the overall interest rate of your online personal loan through different computing methods. Some banks charge flat interest rates, while others use a floating method. A flat interest rate is calculated directly on the principal amount right when processing the loan. The entire payment liability, including the interest, is divided into EMIs. On the other hand, a floating interest is applied on a progressively diminishing principal balance. This implies that the interest component of your EMI reduces with every payment. While a fixed interest rate is easy to calculate and manage, a floating interest rate is, without a doubt, more economical in the long run. You can use a loan EMI calculator to better understand how these interest rates work.
3. Build and maintain a solid credit score
Your credit score plays a vital role in determining your eligibility for a personal loan. Most banks require you to maintain a credit score of 750 or above, as this is a straightforward indicator of your repayment capacity. A higher credit score allows you to negotiate with your bank for the lowest personal loan interest rates. The best way to build your credit score is to pay all your credit card bills and EMIs on other loans quickly. And never, ever default on any loan!
4. Keep a check for offers from the lender
Banks often launch special offers on occasions such as Diwali, New Year, and Independence Day and grant personal loans at relaxed interest rates. Going for an online personal loan is ideal when a lending institution has slashed its rates but getting to know about the offer in time is the trick here. To ensure you don’t miss out on any festive deals, you should subscribe to newsletters and WhatsApp groups of all the major banks in the country. Checking out the official portals of banks periodically is also a good idea.
5. Keep your documents ready
Online personal loans are disbursed quite fast and are offered without collateral. Banks, however, rarely, if ever, compromise on the eligibility criteria. Since a personal loan is disbursed without collateral, it is a high-risk investment for the bank. Thus, lending institutions ensure that they grant loans only to eligible and deserving candidates. Here are the conditions you must meet to avail yourself of a Bajaj Finserv Personal Loan:
- Any Indian who meets the age criteria of 21 to 67 years*
- Minimum salary of Rs. 22,000 or higher based on your city of employment.
- Employment in any MNC, private or public company
- A credit score of 750 and above
Ensuring that you fit the eligibility criteria and have the documentation ready is the right way of making sure your application gets processed quickly. Lenders like Bajaj Finserv offer personal loans of up to Rs. 25 lakh at attractive interest rates. The Bajaj Finserv Personal Loan comes with no hidden charges, and you can avail of this loan by filling out their online application form. That’s not all; on completing the application process and meeting the eligibility criteria stated by the lender, you can get the personal loan disbursed into your account within 24 hours*. You can also use their online Personal Loan EMI Calculator to determine the most suitable tenor and interest rates for your financial needs.
*Terms and conditions apply
Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
