How To Get Best Interest Rates On Personal Loans In India?

A loan that is offered with minimal documentation without any collateral security his known as a Personal Loan. You have to repay this loan in due time, and you can use this money to meet your financial needs. People take loans for various projects like weddings, home renovations, and other personal projects. The best part about this type of loan is that the documents required for a Personal Loan are minimal.

How to Opt For Best Personal Loan Interest in India?

You can get the best Personal Loan interest rate in India if you take care of the following before applying for the loan –

Check CIBIL Score Beforehand – If you check your CIBIL score before the loan application, you can remove the errors which reduce your credit score. Because a poor CIBIL can reduce your chances of getting the best Personal Loan interest. So, if you check the CIBIL before the loan application, you have time to improve the score to get the best interest rates.
Borrow Loan with a Co-applicant – Having a co-applicant in a loan application can increase your chances of getting a lower interest rate. But ensure your co-applicant is a reliable person with a good credit record. Because this is what helps you get approved for the Personal Loan with the best interest rate.
Provide Collateral – If your lender provides you the Personal Loan with collateral, this option will help you get the best rates on the loan amount. How? Collateral reduces the risk of non-payment and in case of a default, the lender can use the collateral to compensate for the loan amount. So, check with your lender if they accept collateral for Personal Loans or not. And if they do accept the collateral, use this to your advantage to get the best Personal Loan interest.
Stable and High Income – If your income eligibility is good and you seem like a capable applicant for a Personal Loan, the lender might provide you with the best rates on the basis of your income.

Which NBFC Provides the Best Personal Loan Interest Rate?

Poonawalla Fincorp provides you with Personal Loans up to ₹30 Lakh at an interest rate starting from 10.99% per annum. So, if you want a loan to meet urgent financial needs with the best interest rates option, consider Poonawalla Fincorp as your preferred lender for it.

How To Get a Low-Interest Rate On Personal Loans?

If you have a high credit score, the NBFC will receive a positive indication from your end and hence offer you the lowest interest rates. The standard credit score is 750. If your score is less than that, try to improve your score. Or cosign a loan, you can be assured of the fact that you will easily get a Personal Loan at a low rate of interest.
Also complete all your repayments on time. If you fail to do so, your credit score is most likely to go down.
Very often, banks release special offers on the rate of interest for a specific period. If you keep your eyes on the offers, you might get a Personal Loan at a low-interest rate.
Compare the rate of interest offered and then opt for the loan with a comparatively lower rate.
Negotiation can work really well to get a lower Personal Loan interest rate when you have a good relationship with the loan provider.

Factors Affecting Personal Loan Interest Rate

There are various factors that determine what will be the Personal Loan interest rate.

The first factor is obviously the income of the borrower. People with higher annual income will have lower interest rates, and people with lower annual income will have higher income rates. Precisely, higher annual income is inversely proportional to the Personal Loan interest rate.
You will have an added advantage if you work in a reputed organization, seeing that the bank might agree to give a lower interest rate.
The rate also depends on whether the borrower is self-employed or salaried. Individuals who are older and close to their retirement age are generally charged with a higher interest rate.