5 Smart Tips for Getting the Best Interest Rate Deals on Personal Loans
Being a personal loan deal hunter is a smart way to go about it. As these are unsecured loans, the interest rates may be higher, but you may find profitable deals. The personal loan interest rate differs for each lender, and getting the best deal will reduce the burden on your savings. One of the ways to get the best interest rate on a personal loan is to know the factors that affect it. Armed with this information, you can take the necessary steps to obtain a favorable offer.
To learn more about how you can get the best deal on personal loan interest rates, read on.
Use digital tools to compare offers
It is important to compare different offers from various lenders, as lenders have different terms and requirements. Likewise, personal interest rate offers will also have some variance. An easy way to compare offers is to use a personal loan EMI calculator. This tool takes into account the interest rate, sanction and term of the personal loan to calculate the EMI. You can use this tool as often as needed to find loan offers that match your financial capabilities.
Maintain a high credit rating
For lenders, your credit score is a direct indication of your creditworthiness. If you have a high credit rating, lenders consider you a low-risk borrower and may offer you a better interest rate for personal loans. Ideally, it would help if you had a credit score above 750. There are different methods you can try to improve your score and get the best interest rate for a personal loan. This includes maintaining a steady repayment history, a low debt-to-income ratio, and ensuring an optimal credit utilization ratio. Overall, being financially responsible can help lenders know that you are a responsible borrower.
Take advantage of exclusive lender offers and pre-approved offers
Lenders offer exclusive and seasonal offers, including a lower interest rate for personal loans. Additionally, lenders are extending pre-approved offers to a select few. These are often existing customers who are eligible and have a proven track record. Remember that seasonal and pre-approved loan offers are only available for a limited time. So, if you are planning a big expense and you can delay it until you get such offers, do it.
Furnish all sources of income
Your income indicates your ability to repay the loan quickly. This is a key criterion for most lenders. So, if you want the best deals on personal loan interest rate, make sure you have a steady income. Ideally, to get the best rates, you should disclose all your sources of income. Whether it’s rental income, interest income, or freelance income, all of these reduce loan risk and can help you get a low rate.
Have a stable job in a reputable company
Another way to prove your income stability is to have a steady job with a reputable organization. Additionally, it helps if you’ve been employed for at least a year, as this assures lenders that you’ll be able to keep up with payments. All of these factors reduce your risk profile and lenders are more likely to offer a competitive interest rate for personal loans. If you have changed jobs frequently, it weakens your candidacy because you have diminished job security.
Financial planning is key to making informed decisions, especially before taking out a loan. Since the personal loan interest rate dictates the cost of borrowing, neglecting it can be quite problematic. To estimate your monthly payments and total expenses, use an online interest rate calculator. With it, you get an overall understanding of the loan and can make an informed decision on offers that match your profile. For a profitable and user-friendly experience, choose the Bajaj Finserv personal loan.
Depending on your profile, you get approved up to Rs. 25 lakh instantly and enjoy payout within hours. Plus, you get a flexible term between 12 and 60 months to ensure repayment remains easy and affordable. Best of all, Bajaj Finserv has no hidden fees and you get full transparency in all loan transactions. To get funds easily, check your pre-approved offer online.
Disclaimer: This article is a paid publication and does not involve any journalistic/editorial involvement of the Hindustan Times. Hindustan Times does not endorse/endorse the content(s) of the article/advertisement and/or opinions expressed herein. Hindustan Times shall not be in any way responsible and/or liable in any way whatsoever for anything stated in the article and/or also with respect to the view(s), opinion(s) ), announcement(s), statement(s), affirmation(s) etc., stated/presented in the same.