4 Tips to Get Low Interest Rates for a Personal Loan

Personal loan interest rates vary from lender to lender. However, all lenders follow the same basic principles while approving a personal loan application. The following are 4 easy tips to increase your chances of getting a lower interest rate on a personal loan.

1. Maintain a Good Credit Score

A CIBIL score above 750 is desirable for instant personal loan approval and the borrower is deemed creditworthy. Also, it could help to get a lower personal loan interest rate.

2. Choose The Right Loan Tenure

Choosing the right loan tenure helps to spread out your repayment obligations evenly without stressing your finances. Use a personal loan calculator to choose the right loan tenure. Ensuring that the sum of the resulting EMI and existing EMIs doesn’t cross 40% of your monthly income could lead to better terms.

3. Apply for the Right Amount

Use a personal loan eligibility calculator to get an estimate of the maximum amount you may be able to borrow. Ensure that the amount you apply for is within this range. If you need a larger amount, consider paying off existing loans, adding a co-applicant (with a good repayment capacity & credit score), or taking a secured loan against property.

4. Check Out for Special Offers by the Lender

Lenders often come out with limited-period special offers on personal loans in the form of lower interest rates for eligible borrowers. Look out for such offers to avail discounts of personal loan interest rates.