In March 2020, the RBI cited a report to claim that personal loans made up 24% of the total credit during the financial year 2019-20. The total transaction value in the category of personal loan will expectedly snowball to Rs.1015395 million in 2021. Low interest personal loans are on rise. These loans are easily available, a feature contributing to the popularity of this financial product. Lower interest rate facilitates doorstep loan repayment.
Advantages of Low Interest Personal Loan
Low interest rate is a big draw for the prospective borrowers and so, they always look for the lender offering the most competitive rate. The factors affecting the interest rate on personal loan are not limited to only the lender. Hence, the prospective borrowers should keep in mind some essential factors that have to do with personal loan interest rate.
A minimum CIBIL score of 750 is one of the primary conditions to get your loan application approved. However, the rule of the thumb is, the more, the better! You can maintain a good credit score or improve the same by simply clearing off dues on your existing loans.
Individuals without a healthy credit score resort to professional credentials to enhance their chance of getting a low interest personal loan. For the salaried individuals, mention of monthly salary is a must. There may be other sources of income such as yields from fixed deposit, rental income etc. You can mention all these details to get a better interest rate.
The facility entitles you to take out funds from a predefined credit limit. Furthermore, you need to pay interest only on the part of the funds utilized and hence, can save a substantial amount on interest payment.
Credit Utilization Ratio
Experts suggest that a credit utilization ratio below 30% helps avail a low interest personal loan.
Bajaj Finserv offers different pre-approved offers on products, including credit cards and personal loans. Submit the required details to check the available offers. The eligible borrowers can get loans at an attractive interest rate.
Must Read: All About Low Interest Personal Loan
Aman 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.