Smart insights to get the best personal loan rate
Personal loans are considered to be one of the best loan tools for workers. They are specially designed for those on a fixed income who are faced with an immediate need for funds for a variety of reasons. You can avail an online personal loan at the best personal loan rates for medical emergencies, setting up a home gym, a vacation and even covering wedding expenses.
Opting for personal loans online is a convenient option as you also have the option of using a loan EMI calculator. This handy tool will help you calculate your exact EMI amount for the loan amount you want. With an online personal loan, you can use whatever amount you disburse that you see fit. Another advantage of a personal loan is that no collateral is required. Ideally, to get the best personal interest rates from lenders like Bajaj Finserv, you must have a high CIBIL score of 750 and above.
If you’re expecting extra expenses soon, here are some tips that will help you get them Personal loan with the lowest interest rate:
1. Compare interest rates
Check what interest rate your local bank offers, and even if you find it satisfactory, check personal loan interest rates at other lending institutions. This gives you an idea of the current market prices and allows you to make the best decision for yourself. You can also negotiate with your bank or financial institution and ask for a lower interest rate. But your bargaining power depends largely on your credit rating and history.
2. Variable vs. fixed interest rates
Banks often calculate the total interest rate of your online personal loan using different calculation methods. Some banks charge a flat rate while others use a variable method. An interest rate is calculated directly on the principal amount during loan processing. The entire payment obligation, including interest, is broken down into EMIs. On the other hand, a floating rate is applied to a progressively decreasing principal balance. This means that the interest component of your EMI decreases with each payment. While a fixed rate is easy to calculate and manage, a variable rate is undoubtedly cheaper in the long run. You can use a loan EMI calculator to better understand how these interest rates work.
3. Build and maintain a solid credit history
Your credit rating plays a crucial role in determining your eligibility for a personal loan. Most banks require you to have a credit score of 750 or more as this is a simple indicator of your ability to repay. A higher credit rating allows you to negotiate the lowest interest rates on personal loans with your bank. The best way to build your credit score is to pay off all your credit card bills and EMIs on other loans quickly. And never, ever default on a loan!
4. Pay attention to lender offers
On occasions such as Diwali, New Year and Independence Day, banks often launch special offers and provide personal loans at relaxed interest rates. Opting for an online personal loan is ideal when a lending institution has lowered their rates, but the trick here is to research the offer ahead of time. To make sure you don’t miss out on any festive deals, be sure to subscribe to the newsletters and WhatsApp groups of all the country’s major banks. It is also a good idea to regularly visit the banks’ official portals.
5. Have your documents ready
Online personal loans are paid out quite quickly and are offered without collateral. However, banks rarely, if ever, compromise on eligibility criteria. Since a personal loan is disbursed without collateral, it is a risky investment for the bank. In this way, credit institutions ensure that they only grant loans to suitable and deserving candidates. Here are the conditions you must meet in order to benefit from a Bajaj Finserv Personal Loans:
– Any Indian meeting the age criteria of 21-67*
– Minimum salary of Rs. 22,000 or higher depending on place of employment.
– Employment in an MNC, private or public company
– A credit score of 750 and above
Ensuring you meet the eligibility criteria and have the paperwork ready is the right way to ensure your application is processed quickly. Lenders like Bajaj Finserv offer personal loans up to Rs. 25 lakh at attractive rates. The Bajaj Finserv Personal Loan is without any hidden fees and you can avail this loan by filling the online application form. That’s not all; After completing the application process and meeting the eligibility criteria provided by the lender, you can withdraw the personal loan into your account within 24 hours*. You can also use the online personal loan EMI calculator to determine the most suitable term and interest rate for your financial needs.
*Terms and Conditions apply
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