The loan interest rates determine your debt servicing costs. The lower your current personal loan interest rates, the lower will be your EMIs. You can use an online personal loan EMI calculator to compute your monthly loan installments.
Factors affecting current personal loan interest rates
2. Income The higher your income, the higher is your loan repayment capacity. Employment stability is equally important. Decent income plus stable employment implies lower loan default risk for the lender. Thus, you have a higher chance of getting personal loans at lower rates if you are a salaried individual employed with a reputed organization as opposed to a self-employed individual with fluctuating income. 3. Existing liabilities Your existing liabilities include fixed financial obligations like utility bills and day-to-day expenses, credit bills, and current loan EMIs. The higher your current debts, the higher will be your current personal loan interest rate, as the risk of default is higher. 4. Multiple loan applications Your CIBIL report shows every credit activity undertaken by you. Thus, if you have made multiple loan applications in the recent past, then your credit score will be adversely impacted. Multiple credit inquiries within a short time period imply that you are desperate for a personal loan tenure. This may be perceived as a red flag by the lenders, thereby lowering your chances of availing of personal loans at competitive rates. 5. Relationship with lender Your existing or past relationship with the lender also impacts your current personal loan interest rates. For instance, if you already have a savings account reflecting timely payments of your financial obligations with the lender, then your chances of getting loans at lower rates increases. If you are contemplating a loan, then you may consider Bajaj Finserv as it offers personal loans at attractive interest rates and provides pre-approved offers to select customers. You may visit their website for more details.
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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. |