In times of financial distress, it is a good idea to s apply for a personal loan. You can use the loan to take care of the expenses at hand and then repay the loan amount along with interest over a period of time. This helps in arranging for the finances needed as well as easily repaying the loan in monthly installments over a specific tenure. Now, if you are looking for a personal loan with a low-interest rate, here are 5 ways that that can help in getting one:
Good Credit Score
You can raise your credit score by steadily paying off your debt and obligations. Your credit score reflects your creditworthiness based on how you manage your past credit. You have a better chance of getting a better personal loan deal if your credit score is 650 or higher. You can maintain a good credit score by paying off your debts on time, keeping your credit utilization ratio under 30%, and abstaining from making loan enquires from several lenders.
Good Repayment History
Try to pay off any credit card debt, and you should pay off your bills each month. Make sure you pay the EMIs on time if you have other outstanding loans. This assists you in keeping up a solid repayment record, which will help you bargain with the lender for lower personal loan interest rates.
You must have a great FOIR (Fixed Obligation to Income Ratio) and job stability to get good interest rates. Your salary slip, a representation of your employment history, is a crucial document. The lender could request a few personal loan paperwork before disbursing the loan to your instant account opening. Also, a high income suggests a good ability to pay back the debt. As a result, many lenders can give you personal loans at low-interest rates.
You will likely receive a low-interest rate personal loan if an MNC or other reputable business employs you. This is because being employed with such organizations indicates that you have a stable job. When determining interest rates for personal loans, many lenders take the applicants’ employer profiles into account. Due to the increased income predictability of salaried people, loan rates are typically lower for them as compared to self-employed people.
Offers Provided By Lenders
Always look for special offers such as those given during festive occasions when applying for a personal loan. Lenders like IDFC FIRST Bank from time to time come up with limited-period special offers on personal loans that also include competitive and industry-best r interest rates. You can get a fair idea of what to expect and the offers you can get when you visit the website or sign up on the app. IDFC FIRST Bank also provides a fully digital and paperless application process through the mobile banking app. It also gives you the option to transfer any current personal loans to your instant bank account.
Finding the best interest rate on a personal loan is simple if you keep these suggestions in mind. You can find a personal loan with a lower interest rate and refinance your debt to save money.