5 smart tips to get the best personal loan interest rate deals

Published on Sep 23, 2022 02:09 PM IST

To know more about how you can get the best deal on personal loan interest rates, read on.

One of the ways to avail the best personal loan interest rate is by knowing the factors that affect it.
One of the ways to avail the best personal loan interest rate is by knowing the factors that affect it.
ByHT Brand Studio

Being a deal hunter regarding personal loans is a smart way to go about it. Since these are unsecured loans, the interest rates can be higher, but you can find cost-effective offers. The personal loan interest rate differs for each lender, and getting the best deal will reduce the burden on your savings. One of the ways to avail the best personal loan interest rate is by knowing the factors that affect it. Armed with this information, you can take the necessary measures to get a favourable offer.

To know more about how you can get the best deal on personal loan interest rates, read on.

Use digital tools to compare offers

Comparing the different offers of various lenders is important because lenders have different terms and requirements. Similarly, the personal interest rate offers will have some variance too. An easy way to compare offers is to use a personal loan EMI calculator. This tool considers the personal loan interest rate, sanction, and tenor to calculate EMIs. You can use this tool as often as needed to find loan offers that match your financial capabilities.

Maintain a high credit score

For lenders, your credit score is a direct indication of your creditworthiness. If you have a high credit score, lenders view you as a low-risk borrower and may offer a better personal loan interest rate. Ideally, it would help if you had a credit score higher than 750. You can try a few different methods to improve your score and secure the best personal loan interest rate. This includes maintaining a steady repayment track record, having a low debt-to-income ratio, and ensuring an optimal credit utilisation ratio. Overall, showcasing financial responsibility can help lenders know you are a responsible borrower.

Avail exclusive lender deals and pre-approved offers

Lenders offer exclusive and seasonal offers, including a lower personal loan interest rate. Moreover, lenders extend pre-approved offers to a select few. These are often existing customers who are eligible and have a proven track record. Remember that seasonal and pre-approved loan offers are available only for a limited period. So, if you’re planning a big expense and can delay it until you get such offers, do so.

Furnish all income sources

Your income indicates your ability to repay the loan promptly. It is a key criterion for most lenders. So, if you want the best deals on the personal loan interest rate, ensure that you have a stable income. Ideally, to get the best rates, you should disclose all your sources of income. Be it rent income, interest income, or freelancing income, all of these reduce the risk of lending and can help you secure a low rate.

Have a stable job at a reputable company

Another way of proving your income stability is by having a stable job at a reputed organisation. Additionally, it helps if you have been employed for at least one year, as this assures lenders that you will be able to keep up with payments. All these factors lower your risk profile, and lenders are more inclined to offer a competitive personal loan interest rate. If you have changed jobs frequently, it weakens your application as you have decreased job security.

Financial planning is crucial to making smart decisions, especially before you avail a loan. Since the personal loan interest rate dictates the cost of borrowing, overlooking it can be quite problematic. To estimate your monthly payments and the total outgo, use an online interest rate calculator. With it, you get a comprehensive understanding of the loan and can make an informed decision on offers that match your profile. For a cost-effective and pocket-friendly experience, choose the Bajaj Finserv Personal Loan.

Based on your profile, you get approved for up to Rs. 25 lakh instantly and enjoy disbursal within a few hours. Moreover, you get a flexible tenor between 12 and 60 months to ensure repayment stays easy and affordable. Best of all, Bajaj Finserv has no hidden charges, and you enjoy complete transparency in all loan dealings. To get funds with ease, check your pre-approved offer online.

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