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Best Ways To Get a Personal Loan at the Best Interest Rate

Published on Mar 24, 2020Updated on Jan 23, 2024

Best Ways To Get a Personal Loan at the Best Interest Rate

Lower the interest rates in a personal loan, better it is to take care of one’s financial needs. Personal loans have helped people for decades to meet unexpected expenses from medical emergencies to unforeseen debt consolidation requirements. However, in today’s date, the role of personal loans have broadened by miles. People take personal loans for holidays, weddings, education, and many other planned expenses too. This change has occurred due to a drop in personal loan interest rates and ease of availing them.

The best way to get a personal loan is through careful planning of expenditure, monthly obligations and income. On the other hand, if you are able to get a personal loan at a low-interest rate,  you can ensure smoothness in your cash flow without disrupting your lifestyle.

Our dreams are becoming bigger by the day and the capability of fulfilling them gives us immense joy. Personal loans have a very large role to play in helping millions of people realise their aspirations - no matter how big or small - at the right time.

Best Ways to Get Personal Loans at the Best Interest Rates:

1. Maintaining a Good Credit Score

A credit score reflects one’s creditworthiness. This depends on how one has managed credit in the past. A score above 700 or 750 makes one a worthy candidate for a personal loan. As a thumb rule, the higher the score, the better it is for one’s personal loan interest rate. Repayment terms, final loan amounts and interest rates to be applied are decided by lenders. However, the loan amount and the interest rate depend on one’s credit score. Personal loan interest rates can be slightly negotiable. And the biggest upper hand one has is by highlighting a high credit score.

2. Comparison of Lenders to Get the Best Offers

This is one of the best ways to get a personal loan. Investing time in proper research will directly lead to saving money and helping one in acquiring the ideal personal loan. Comparison of personal loan lenders can be done easily. All you need to do is to find the loan with the best interest rate and compare their respective benefits and features. This may take some time but it is only in one’s own best interest in ensuring that one is making the right decision. One can check eligibility, EMI amount, loan amount by comparing the loans by different lenders. Personal loan EMI calculators are available online so that one can extract the amounts after filling up one’s details. This gives a clear picture of the monthly payments.

Must Read: How To Calculate Personal Loan EMI

3. Look for Some Deals and Offers

Lenders tell customers about all special deals and offer through various sources like SMS, phone calls and emails. One needs to keep a watch for all kinds of offers to make your personal loan even more affordable. Such offers are limited and short-lived and they have to be grabbed when they are valid in order to lower the interest rate. Many times there are offers during festive periods.

4. Qualification Based on Professional Credentials

One’s profile has a lot to do with the decisioning on one’s loan application. If one’s profile is stable, then the interest rate is lower. Especially, if one draws a substantial salary and works for a highly reputed company, it could lead to an offer with a lower interest rate.  For instance, at SMFG India Credit, doctor loans are provided upto Rs. 30 lakhs. Another factor can be the number of years of work experience. If one has a work experience of a decade and above, it can be further useful in reducing the rate.

In conclusion, in order to get the best interest rate on a personal loan, it would be a very good idea to

  1. Leverage your professional qualifications and experience
  2. Check out offers provided by various lenders
  3. Maintain a good CIBIL score
  4. Use an online personal loan eligibility calculator to get a fair idea of the loan amount you can be eligible for.
  5. Use online personal loan EMI calculators to understand the EMI amount you will need to pay every month. If the amount is something which seems unmanageable, you can consider lowering the loan amount or increase the tenure.
  6. Talk to a representative of the lending institution to understand if your requirements are in line with their policy, and the best possible rate that can be offered to you.
Must Read: How to Check CIBIL Score For Personal Loan?

Features and Benefits of Personal Loans:

  1. The documentation is simple and quick. Here is a list of basic documents that will be required to complete a personal loan application.
    1. Photo Identity proof with age proof
    2. Fully filled up and signed application form
    3. Photograph
    4. Residence Proof
    5. Last 6 months bank statement
    6. Additional documentation for salaried applicants includes last 3 months salary slips, Form 16 or Income Tax Returns
    7. Additional documentation for self-employed applicants is last 3 years Income Tax Returns along with income computation, last 3 years certified Balance Sheet and Profit & Loss Account
  2. Flexible repayment tenures between 12 & 60 months
  3. The amount is disbursed directly to your account, which can be then used to make multiple cash payments as required
  4. Personal loans don’t require any collateral/security. At SMFG India Credit, you can avail personal loans upto Rs. 25 lakhs. We also offer customised personal loans as per your individual needs and profile.
  5. Online process - At SMFG India Credit, you can easily apply for a personal loan anytime, anywhere through our website. All you have to do is click the “Apply now” button at the top of the page, and fill up the information requested.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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