The interest rate at which Personal Loans are available plays a crucial role in deciding how much the total loan cost will be. A lower interest rate translates to lesser interest liabilities and Loan amounts. The Personal Loan interest rates offered to differ between each bank and applicant case. Income, type of employment, age, and relationship with the lender influence the interest rates.
So, now that you know how crucial Personal Loan interest rates are, here are some tips to get the best deal:
Work on credit scores
Your score depicts your credibility as a borrower. A higher rating reflects that you are a responsible borrower capable of repaying the loan on time. Your credit score has a significant hold over your Loan approval and even the interest rates offered. Banks offer a lower interest rate to those holding ratings of 750 and above. Therefore, work towards improving it and keep it error-free always.
Clear repayment track record
Be very specific about maintaining a clear repayment track record. Be timely with your equated monthly installments. Always pay the entire EMI amount and not just the basic payable amount. This lets you pay off the Loan faster and hold a better credit history. Applicants having a strong repayment track record receive better interest rates.
Look for offers
Banks come up with special online Personal Loan offers frequently. These get generally launched during the festive season or the bank's anniversary. Watch out for them as you truly benefit from it.
Compare and Negotiate
Before signing any loan deal with the lender, ensure that it is the best possible deal at that point then. For this, study the offerings made by various banks carefully. Do not be in haste to lock in any deal. Analyze and compare the options handy. If you find a bank that offers a lower interest rate and better repayment terms, there are two things you can do. Either you consider the deal your desired bank offers or negotiate with them.
Or try and convivence them to make a better deal by making your case. The other thing that you can do is switch to another lender if the one you chose disagrees. To know more about the interest rates offered by various banks, visit their website. The online Personal Loan application allows you to compare different offers under one roof.