Few tips to get the best Personal Loan interest rates in India

Owning to the popularity of personal loans, leading financial institutions and NBFCs are offering the best personal loan interest rates to woo the potential borrowers. Between FY 2017-19, Rs. 2.34 trillion worth of personal loans has been availed making it the most availed form of credit. This unsecured advance rose from 26.9% to 28.3% from FY 2018-19, as they cater to diverse personal and professional needs.

So, if you consider tackling your urgent financial needs, availing short-term personal loans are the smartest way to do it. From financing a wedding to booking a vacation, you can bankroll your diverse needs with the best personal loan. However, availing an advance with the most competitive rate is essential. This will make your repayments more manageable. Hence, finding the best interest rate is an absolute necessity.

This is how you can avail better interest rates for your personal loan –

[1] Maintain a healthy CIBIL score

Your CIBIL rating exhibits your creditworthiness based on your repayment track record in the past. A high credit score of 750 or more makes you a worthy contender to enjoy the best personal loan interest rates.

A very high CIBIL rating instil a sense of confidence among the lenders and puts you in a better position to negotiate terms. If you want to improve your credibility, make sure you follow certain behaviour to improve your credit score such as timely repayments of dues, low credit utilisation ratio, limited loan applications, etc.

[2] Look out for promotional offers

Reputed financial institutions and NBFCs notify their customers regarding special offers via email and SMS. A borrower must always keep a watch on these offers to avail the best personal loan interest rates on the loans.

[3] Compare between lenders to get the best credit offering

In-depth research goes a long way in procuring better personal loan rates for your requirements.  Hence, compare all the leading lenders in the market and settle on one that best suits your financial portfolio and value-added features. Also, check the eligibility criteria and the documentation required before you opt for such advances.

So, if you are wondering which financial institution to approach or, which NBFC is best for a personal loan, you can consider Bajaj Finserv for their instant loan approval and fast disbursal of sum. With their Personal Loan, you can avail a substantial loan amount of up to Rs. 25 Lakh that comes with no end-usage restriction. Furthermore, nominal paperwork is required to avail this credit facility making the loan processing process quicker.

Furthermore, if you are an existing customer, you get to enjoy pre-approved offers which make the process of application simpler and less time-consuming. These offers are applicable on unsecured credits like personal loans, business loans, and secured advances such as home loans among numerous other financial products. You can check out your pre-approved offer by sharing only a few necessary details like your name and contact number.

 [4] Qualify based on your professional credentials

For example, an applicant draws a high salary from a reputed private or public sector company – it makes him/her a suitable candidate from a lender’s point of view. Hence, you can put this to your advantage to negotiate the best personal loan interest rates.  Your firm’s excellent reputation goes a long way to secure better interest rates, as the lenders are assured that you possess the financial means to conduct timely payments.

[5] Existing relationship with your lender

If a borrower exhibits a healthy relationship with the existing lender, there will be the chances of getting best personal loan interest rates. The primary reason is that lenders aim to retain clients, especially those who have an above average credit behaviour. Secondly, if a borrower has an excellent interpersonal relationship with the bank official – you can grab reasonable interest rates. They might also inform you about new offerings which could prove beneficial.

With these 4 tips in mind to find the best personal loan interest rates, you can procure a low-interest rate personal loan conveniently. Besides, make the most out of your outstanding CIBIL score and stable employment status to further increase your chances of loan approval and the most beneficial terms on them.

Pardeep is an experienced financial analyst, researcher & writer. I have done MBA in Finance. I have worked extensively in the finance sector along with many organizations. I spend most of my time on the Internet reading finance related stuff and love to share my expertise with readers.

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