5 Tips to Get a Low Interest Personal Loan

1. 5 Tips to Get a Low Interest Personal Loan

2. Personal loans are one of the most sought-after loan types, as they are fast to avail and require minimum documentation. A personal loan can be beneficial when you have a financial emergency or any other pressing financial need. However, before applying for any personal loan, it is essential to compare the interest rates with various lenders. If you cannot repay loans with high interest rates, getting low-cost personal loans can be the best way forward. That said, obtaining low interest loans is easier said than done. To help you get low-interest personal loans, we present a list of five tips to follow. Read on.

3. 1.Maintain a Good Credit Score When you apply for a personal loan, the first thing a lender does is check your credit score. Maintaining a good credit score increases your chances of securing lower interest rates on your personal loan. To maintain a good credit score, you need to keep a clean credit history and pay your loan installments on time. Also, please do not apply to multiple lenders simultaneously, as it also affects your credit score negatively.

4. 2.Do Not Default On Your Loan Installments Defaulting on your loan installments can be a recipe for disaster as it ruins your credit history. Therefore, it is vital to maintain a good track record in terms of loan repayment. Suppose your repayment record is suitable to avail of other loans. In that case, you will have a better chance to avail a low-interest personal loan without any hassles.

5. 3.Reapply for a Loan With Your Previous Lender If you have a good relationship with your previous lender and have repaid your loan on time, then reapply for a personal loan to the same lender. They will offer you lower interest rates as the lender is aware of your credit behaviour and will want to retain you as a customer. That being said, you may not always be able to reapply with your previous lender. In such cases, we suggest that you look for a new trustworthy lender.

6. 4.Look for Seasonal Loan Offers Banks and lenders offer lucrative loan offers at certain times to stay competitive with other lenders. Usually, you will find such attractive schemes during the festive season, which will only be available for a limited time. So, availing of a personal loan at such times can help you get better interest rates.

7. 5.Learn about Interest Calculation Low interest rates are not always good for you. You need to understand the complete method of loan calculation to choose what’s best for you. There are flat-rate and reducing rate methods for calculating interest. While your interest rate stays constant for the entire tenure with a flat rate, the reducing rate method implies paying interest towards the outstanding balance only. Generally, flat rates are lower when compared to reducing rates.  

8. Wrap Up The points mentioned above can help you get better interest rates when you apply for a personal loan. However, the whole process of applying for and getting a personal loan sanctioned by traditional lending institutions is generally a big ordeal. So, if you are looking for a simple, hassle-free option to obtain low-interest loans, download, install and register with a reputable personal loan app. Then, you can avail of low-interest rate loans, get approval instantly, and have the funds disbursed into your account in under 15 minutes only.

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