4 Top Ways to Avail Personal Loan at Low-Interest Rates in India
According to RBI, personal loan in India accounted for 41.5% and 41.6% of incremental credit growth during the financial year 2016 and 2017. It is one of the most sought after advances because of its no end-user restriction.
However, the rate of interest may be problematic as these loans are unsecured. The rate of interest varies from lender to lender, and they take into account factors like credit history and score, income, existing debts, state of residence, etc.
Therefore, when applying for a personal loan in India, it is important to conduct proper research to make an informed decision.
Must Read: Few Tips to Get the Best Personal Loan Interest Rates in India
Ways to avail a personal loan with low interest
- Compare different rates: Compare the rates of interest provided by different lenders. It will help you save considerably in interest payments if you pick the right rate. Lending institutions may provide nominal interest rates if you meet simple eligibility criteria.
- Opt for a shorter tenor: The repayment tenors vary from lender to lender. NBFCs offer flexible repayment period ranging from 1–5 years. Opting for a shorter tenor may help you to secure lower rates.
- Improve CIBIL score: You will have to improve your credit score before applying to get better rates and more comfortable loan terms. There are few ways how you can improve your cibil score: timely EMI repayments of your previous loans, utilising only 30% of your credit card limit, properly using old credit cards to create a good credit history, etc.
- High income: Lenders prefer customers who have a high income, as it increases the latter’s repayment capabilities. Hence, disclosing all your sources of income may help you to avail lower rate of interests.
By following the aforementioned ways, you can avail a personal loan in India, which is best suited to meet your needs as per your eligibility.
Reference: Avail Personal Loan at Low Interest in India
