In recent years, the cost of living has greatly increased; thus, it has become extremely difficult for people to attain financial wellness. Further, if there is an urgent requirement for cash, then we would have to lose face in front of family & friends, and borrow money from them.
However, now we can easily opt for instant loans from banks and NBFCs (Non-banking financial companies). These financial institutions provide financial assistance at way lower personal loan interest rates as compared to traditional lenders.
Other than that, opting for personal loans have a number of benefits, such as:
1. Collateral-free loans
As personal loans are unsecured in nature; thus, we can easily obtain them without keeping any kind of collateral with financial institutions. Further, you can also apply for a personal loan online; meaning, you can easily procure a low interest personal loan online at zero collateral from the comfort of your home or office.
2. Without any usage restrictions
Unlike home loans or education loans, which have usage conditions attached to them, you can easily make use of personal loans for any of your business or personal use. You can make use of the low interest personal loan amount to fund your travel plans, pay off your medical bills, take care of your credit card bills, renovate your home, expand your business, etc.
3. Flexible repayment tenure
The best thing about opting for personal loans online is that you get the option of flexible repayments. Thus, you can easily plan out your repayment schedule in advance, and repay your debt without putting a dent in your financial budget. Further, financial institutions such as banks and NBFCs (non-banking financial companies) also provide you with tools such as an EMI calculator and financial blogs. Thus, you can not only use the financial blogs to obtain additional information but can easily make use of an EMI calculator to calculate your EMIs (Equated Monthly Instalments) on the basis of your principal amount, personal loan interest rates, and repayment tenure.
Now, even if we know the various benefits of choosing a personal loan; however, we still get worried pertaining to the interest rates that come attached with the financial assistance. Therefore, we have researched a few ways through which you can get low interest personal loans, and they are as follows:
1. Compare online
In today’s times, there are over a thousand lenders that provide personal loans online; however, their interest rates are different from one another. Thus, in order to obtain the lowest personal loan interest rates, it becomes highly important for us to compare online. Now, when we say that you must compare online, we don’t mean that you should apply for simultaneous loans through multiple lenders to obtain their interest rates. After all, if you apply for multiple loans, then the lenders will do a hard enquiry on your credit history, and this will impact your credit score negatively. In order to compare online, you can easily make use of a personal loan interest rate calculator or even check via aggregator websites.
2. Show multiple sources of income
When financial institutions provide you with personal loans, the first thing they check is whether you will be able to repay EMIs on time. Thus, your repayment capability plays a major role in helping you get low interest personal loans. Therefore, you can easily show multiple sources of revenue by either adding a co-signer for the loan amount or putting up an existing property for rent.
3. Work on your credit history
Your credit history is unarguably one of the first things that banks and NBFCs (Non-banking financial companies) check to gauge your repayment capability. Thus, you must always ensure that you have repaid all your existing debt in a timely manner; this existing debt might be your previous loan EMIs or even you’re pending credit card bills. Further, also ensure that your credit score is above 750; after all, the higher your credit score, the more are your chances of getting low interest personal loans.
4. Apply for a lower repayment tenure
Although, flexible repayment tenure is one of the biggest perks of opting for a personal loan online in India; however, your repayment tenure also impacts your personal loan interest rates. After all, the higher your repayment tenure, the more are the interest rates levied upon you by banks and NBFCs (Non-Banking Financial Companies). However, you must remember that you carefully plan out your repayment tenure in advance, because if you opt for a lower repayment tenure and are unable to make timely repayments then it will further impact your credit score. There are a plethora of banks and NBFCs (Non-Banking Financial Companies) that provide EMI calculators on their website. Thus, you can use this tool to calculate your repayment tenure based on your interest rates and principal amount. Further, there are also numerous aggregator website that provide you with interest rates of multiple lenders along with their repayment tenure limit and principal amount limit. Thus, you can use these website for further research. After all, at the end of the day, our goal is to find the financial institution that provides us with the lowest personal loan interest rates.
5. Use your professional credentials
Financial institutions such as banks and NBFCs (Non-banking financial companies) also gauge your professional credentials when determining your personal loan interest rates. Thus, if you are working with a reputable firm, you can use that to your advantage and easily negotiate with the financial institutions to obtain a low interest personal loan. Also, before applying for a personal loan, ensure that you have been working with your existing firm for at least a period of 2 years, as your financial stability plays an important role in determining your personal loan interest rates.
Hope you enjoyed reading this article pertaining to the various benefits of personal loans and understood the various ways through which you can get a personal loan at the lowest interest rates.
Thank you and all the best!