Tips on being eligible to score lower personal loan interest rates before you apply for the loan!
The personal loans are indeed the best financial instrument one can expect at a desperate time. And there are many financial institutes like public and private banks and a list of Non-Bank Financial Companies (NBFC) that offer personal loan at a faster processing pace. But some people still feel reluctant to opt for a personal loan and the common reason behind it is interest rates. It makes sense as the personal loan interest rates go higher, the borrower needs to pay extra on the interest payments.
It is easy to believe you have to settle for the personal loan interest rates which are suggested by the loan lender and there is no scope one could find to lower it down! But there are some tips you can follow to logically make the interest rate favorable, irrespective of which loan lender you choose.
See what your eligibility says!
Your loan eligibility will fairly define and includes the options in personal loan interest rates, tenure options, and installment values. So it would matter how successful you would be in finding the cheapest interest, the loan lender would only sanction your loan application only if you pass the eligibility criteria. In the brighter light, being eligible get benefits of getting better interest rates or ability to stretch the borrowing limit. You can use a personal loan eligibility calculator with how much loan amount you could quote in the loan application.
Also, check your credibility!
Goodwill always pays off! The apnapaisa personal loan interest rates you are offered as based on your credit history and monthly income, whether you are a salaried person or self-employed one. Since personal loans are an unsecured loan and don’t expect an applicant to submit any collateral security. So for a loan lender, your financial credibility becomes an anchor point for a loan lender to approve the loan application. Indeed you would have more weight on your loan profile if you work in a reputed firm at the respectable position or operating your business at soother flow.
Power of Credit score!
It is quite a well-known fact that your credit score aka CIBIL score could positively say personal loan interest rates in your favor. Most loan lenders keep 750+ as a parameter to consider someone’s CIBIL score as legible to allow reduced interest rates and even let you quote extra loan amount in the application. Since personal loan lenders know most applicants apply for such loan as they are in financial situations, so some lenders might speed up processing. It would be better to keep you CIBIL score up and maintain so in case if you need a quick fund aid, you would get it at the quicker pace.
The benefit of market competition!
Since there are so many financial institutions offering suitable loan option, you are bound to find lower personal loan interest rates, if you search wisely. We have two teams; in one corner you have public banks and on the other end you have private banks and NBFCs. Now in order to cater to the larger audience, each type of loan lenders offers discounts and concessions which also include the possibility of lower interest rates!
