The personal loan interest rates are usually higher than secured loans owing to the collateral-free nature of the former. No security-backing increases the lender’s risk. Hence, they charge higher than the likes of home loans or loans against property.
However, there are ways in which applications can secure the lowest interest rates on a personal loan. How to Ensure Affordable Personal Loan Interest Rates? The list mentioned below discusses a few ways to implement and gain competitive rates of interest – 1. Improve credit score A 750 or higher credit score showcases that you are a responsible borrower and have managed your previous credits well. Hence, make sure to improve your CIBIL score before applying. 2. Opt for shorter tenor A shorter tenor for the loan will help you in repaying the amount faster. It can also assist you in availing the best personal loan deals. 3. Compare lenders Opt for comparison of various lenders and their offers. A close comparison of multiple aspects can help you land on a better deal with an affordable interest rate for your personal loan. Bajaj Finserv offers low interest rates personal loan within just a few clicks. 4. Get a co-applicant Apply for a loan with another member of your family who has a good credit score. It will lead to sharing the financial obligations; it will also reduce the lending risk. Must Read: How Interest rates are calculated on Personal loan. 5. Disclose all income source Disclosing all your incomes will assure the lender of your repayment capability. If you have a steady income, you may avail lower personal loan interest rates. 6. Check your pre-approved offer Pre-approved offers will help you be aware of the eligible amount so that you do not end up making an application for more than you can receive. By fulfilling most of the eligibility criteria, starting from credit score to a decent credit history, you will gain benefits of personal loan with attractive rates of interest on personal loans. Additional Read: Methods To Get Good Deals On Personal Loan Interest Rates
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |