A personal loan is prefered by many to finance emergency monetary requirements. However, it is an unsecured loan and therefore fetches a high-interest rate. Nevertheless, you can still borrow an instant personal loan offline or online with a nominal interest rate from a lending institution by following some practical yet effective ways, which are highlighted in this article.
8 Ways to Get the Cheapest Personal Loan in India
Follow the tips mentioned below to get a personal loan at an affordable interest rate:
- Maintain an optimum credit score
Your credit score showcases your creditworthiness. This score depends on how you have managed your credits before. Ideally, lenders prefer a credit score of 750 or above to qualify for a personal loan. This means a higher credit score increases your eligibility to get a personal loan.
Your lender determines the loan amount, repayment tenure and interest rate after assessing your credit score. So, if you have a high credit score, you can negotiate with your lender for a lower interest rate.
- Search for seasonal offers
Lending institutions send notifications regarding special loan offers to your registered email ID and phone number. These deals include discounts on interest rates among others. You can often get these offers while applying for an instant personal loan online, especially during festivals. However, keep an eye on these offers since they are available for a limited duration.
- Check your professional credentials
If you earn a high salary and are employed in a trusted private or public sector company, then it makes you a creditworthy applicant for a lender. You can use your stable employment status to negotiate with a lender for a nominal interest rate. Besides, the company’s reputation can assist you in getting a personal loan at a lower interest rate as it ensures your financial stability to make timely repayments.
- Pay your existing debts
You must repay all your outstanding dues before you apply for a personal loan. If you have multiple loans that are still due, repay them soon as loans remaining due over a long time create a high risk of default in repayment. Therefore, a lender charges a high-interest rate. Besides, avoid applying for too many credit cards and limit their usage for similar reasons.
- Check for any additional charges
Financial institutions often levy penalties and fees on personal loans. These charges include processing fees, pre-closure penalties, and verification fees, to name a few. All these charges increase your overall borrowing cost. Therefore, select a personal loan that not only offers a lower interest rate but also has nominal additional charges.
- Search for pre-approved loan offers
Lenders provide pre-approved loan offers to those borrowers who have taken a loan previously and hold a satisfactory repayment record. Usually, you may get a nominal interest rate with pre-approved loan offers, which lowers your EMI payments and assists you in managing your personal loan repayments affordably. Besides, you can also enjoy a short processing time, which means quick disbursal of the approved loan amount.
- Contact lenders from whom you have borrowed before
You can approach a lender with whom you share an existing cordial relationship to borrow a personal loan. Existing relationships with your lender will allow you to negotiate and get a personal loan at a concessional interest rate along with flexible terms and conditions.
- Compare different financial institutions to get the best deal
Thorough research of personal loans offered by different lending institutions is essential before applying for them. This is because you can carefully go through each of its terms and conditions, interest rates and other details like personal loan documents required and select the one that suits your financial capacity and requirements.
Several leading online marketplaces allow you to compare personal loans offered by different lending institutions. So, check the interest rates and other charges of each personal loan and select the one that is financially suitable for you to repay.
To conclude, you can borrow a personal loan to meet any of your financial needs. So, be it paying for your unforeseen medical bills or funding your wedding, you do not need to worry about its end use. Moreover, follow the above mentioned ways to get an instant personal loan online or offline at a nominal interest rate and cover your hefty expenses quickly and affordably.