3 Ways to Get the Lowest Interest Rate on your Personal Loans

Low Interest Rate

Personal loans come with a higher rate of interest as these are unsecured. They are not backed by collateral; hence, these are more expensive to borrow compared to secured loans.

Usually, the interest rates differ between lenders and also between borrowers depending on their eligibility for the loan. A borrower best able to fulfil the eligibility criteria of the lenders will be able to benefit from the best personal loan rates.

Some of the ways you can avail a lower rate of interest include –

1. Improve your CIBIL score

Your CIBIL score is one of the most crucial eligibility criteria when applying for a personal loan. Ideally, the minimum score to apply is 750.

A higher CIBIL score will make you more creditworthy for the loan. Additionally, you may also be able to benefit from more affordable rates of interest.

You can improve your CIBIL score when you –

• Pay your loan EMIs in time.
• Pay your total payable amount of your credit card in time.
• Keep your credit card usage under 60% of your credit limit.
• Do not apply for multiple credits at a time. Application for credits leads to credit enquiries, which lowers your CIBIL score.

Must Read: Quick Ways to Get a Lower Personal Loan Interest Rate

2. Apply with a co-borrower

Applying for a personal loan with a co-borrower or co-applicant lowers the risk involved for the lender since the repayment burden is distributed between both the individuals.

Hence, financial institutions may offer you the best personal loan interest rates. Make sure the co-applicant you choose holds a good credit score.

3. Apply during seasonal offers

Several lenders offer seasonal offers on personal loans during festive periods and holidays. Applying during this time can help you avail a lower rate of interest.

Keep these points in mind when you apply for products like the Bajaj Finserv Personal Loan. Maintain a healthy CIBIL score and avail a loan at attractive interest rates and with multiple borrower-friendly features.

Reference: Avail Personal Loan with Low Interest Rate