Smart ideas for getting the best interest rate on personal loans
The personal loan is considered one of the best credit instruments for salaried individuals. They are specially designed for people with a stable income who face immediate fund needs for various reasons. You can avail an online personal loan at the best interest rates for medical emergencies, setting up a home gym, vacations, and even covering wedding expenses.
Opting for personal loans online is a convenient option as it also gives you the option of using an EMI loan calculator. This handy tool helps you calculate your precise EMI amount for the loan amount you are looking for. An online personal loan allows you to use the amount disbursed that suits you. Another advantage of a personal loan is that no collateral is required. To get the best personal interest rates with lenders like Bajaj Finserv, you should ideally have a high CIBIL score of 750 and above.
If you are planning extra expenses soon, here are some tips that will help you get the personal loan at the lowest interest rate:
1. Compare interest rates
Check the interest rate offered by your main bank, and even if you find it satisfactory, consult the personal loan interest rates of other lending institutions. This will give you an idea of the current market rates and allow 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 powers largely depend on your credit score and background.
2. Floating or fixed interest rates
Banks often calculate the overall interest rate for your personal loan online using different calculation methods. Some banks apply fixed interest rates, while others use a floating method. A flat rate of interest is calculated directly on the principal amount as soon as the loan is processed. The entire payment debt, including interest, is divided into EMI. On the other hand, a floating interest is applied on a gradually decreasing principal balance. This implies that the interest component of your EMI decreases with each payment. While a fixed interest rate is easy to calculate and manage, a floating interest rate is, without a doubt, more economical in the long run. You can use an EMI loan calculator to better understand how these interest rates work.
3. Build and maintain a strong credit rating
Your credit score plays a vital role in determining your eligibility for a personal loan. Most banks require you to maintain a credit score of 750 or higher, as this is a simple indicator of your ability to repay. A higher credit score allows you to negotiate with your bank for the lowest interest rates for personal loans. The best way to establish your credit score is to pay all your credit card bills and EMIs on other loans promptly. And never, ever default on a loan!
4. Keep a check for offers from the lender
Banks often launch special offers on occasions such as Diwali, New Year and Independence Day and provide personal loans at relaxed interest rates. Opting for a personal loan online is ideal when a lending institution has reduced its rates, but finding out about the offer in time is the trick here. To make sure you don’t miss any festive offers, you should subscribe to the newsletters and WhatsApp groups of all the major banks in the country. Periodically checking official bank portals is also a good idea.
5. Have your documents ready
Online personal loans are disbursed fairly 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 high risk investment for the bank. Thus, credit institutions ensure that they grant loans only to eligible and deserving applicants. Here are the requirements you must meet to qualify for a Bajaj Finserv personal loan:
– Any Indian who meets the age criteria of 21 to 67*
– Minimum salary of Rs. 22,000 or more depending on your city of employment.
– Employment in any multinational, private or public company
– A credit score of 750 or more
Ensuring you meet the eligibility criteria and have the documentation ready is the right way to ensure your application will be processed quickly. Lenders like Bajaj Finserv offer personal loans of up to Rs. 25 lakh at attractive interest rates. Bajaj Finserv personal loan comes with no hidden charges, and you can avail this loan by filling their online application form. That’s not all; after completing the application process and meeting the eligibility criteria stated by the lender, you can get the personal loan disbursed to your account within 24 hours*. You can also use their online EMI personal loan calculator to determine the best term and interest rates for your financial needs.
*Terms and conditions of application
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