Your Money: Often when you do not have money at the time of sudden expenses, then you may have to take the help of personal loan. You can also take a personal loan for major household expenses like marriage, education and various emergencies. Lenders offer a wide range of offers such as flexible repayment tenure, online application and faster loan availability keeping in mind the convenience of their customers. Often people have very little knowledge about the rules and other features of personal loan. In such a situation, it is very important to know about the special aspects related to them. Before taking a personal loan, one should research the interest rates offered by different lenders in the market so that you can avail the lowest interest rate. Here we are going to give you five such tips, with the help of which you can get a personal loan at the lowest interest rate.
Good credit score is essential
If you have a good credit score (above 700), it can help you get a personal loan at a low interest rate. Your credit score will improve only when you have a good credit history. By looking at your credit history, lenders get an idea of whether you will be able to repay your loan on time in future. That’s why you should constantly try to improve your credit score. For this, you should make full payment of your credit card bill on time and repay all the loans on time or ahead of time.
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It is also important to take care of loan repayment history
The bank not only checks your CIBIL score but also checks your loan repayment history before deciding the interest rate for the personal loan. Banks usually give loans to those who have not defaulted in the last 12 months. If the loan is given to a loan defaulter, then the interest rate there can be high. Hence, it is important to have discipline in your loan repayment to get a low interest rate on personal loan.
Take advantage of your professional credentials
You can make the most of professional credentials to avail a personal loan at a low interest rate. The higher your income, the more easily you can make regular loan payments. Hence, your chances of getting the loan approved at better interest rates increase. For this, a valid income proof like Income Tax Return has to be submitted. The lending bank also checks the reputation of the company where you work. If you work in a reputed company, the lender assumes that you have a stable career and can repay the loan on time. In such a situation, it becomes easy for you to get a personal loan at a low interest rate.
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Build good relation with bank
It can also be beneficial for you to prove yourself as a loyal customer in the bank. If you have a good history related to opening and managing your Fixed Deposit and Savings Account in the bank, then even in this situation, your chances of getting a loan at a low interest rate increase. By establishing a good relationship with the bank, you can get a personal loan at attractive interest rates.
Compare interest rates of different banks
You should, first of all, compare the interest rates offered by different banks. After this, you should choose the bank that is offering the personal loan at the lowest interest rate. If a bank allows paperless, digital applications, you can apply for a loan online and get an instant loan without any delay.
(Source: Tax Guru)
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