Get Online Personal Loans at Low Interest Rates in 2019 - Loan Trivia

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Monday, 4 November 2019

Get Online Personal Loans at Low Interest Rates in 2019

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There are different financial products for different needs. A personal loan is one such product that has made life easy. These loans have grown in popularity especially in the last five years. It is now very easy to get a personal loan. If you have a fixed monthly income and a decent credit score, you can rest assured that your loan will be approved. Nowadays, you can apply for a loan online with just a few clicks. This means you no longer have to visit the lender’s office. And with some research, you can get personal loans at low-interest rates. Sounds interesting, doesn’t it? 

Here Are a Few Things To Help You Secure a Lower Interest Rate: 

A Good Repayment History 

A personal loan is an unsecured loan. That means it is a collateral-free loan. But as you are not pledging anything as security, you should have a decent credit history. Everything about this loan such as loan approval, loan amount, and even the interest rate depends on your credit score. Those with a good credit history may get bigger loans with lower interest rates. 

In short, your credit history reveals how creditworthy you are. Make sure you have a good reputation to get the best rate. 

A Little Research On Rates and Charges 

When it comes to loans, there should be no hurry about picking the lender. Take time and compare the rates, fees, and processing charges across lenders. This will help you secure a lower interest rate. The rates and charges tend to vary from lender to lender, and even a minor change can make a big difference. Say, you took out a loan of Rs.10 lakh at a 14% rate for two years. Here you need to shell out Rs.2,30,397 (14% of Rs.10 lakh) as interest for the loan. If the rate is 13.50% for the same, you could save Rs.8,725 on interest. 

This makes the value of comparing and shopping around at several lenders clear. For instance, you could approach non-banking financial companies (NBFCs) like Bajaj Finserv for personal loans. Apply online for easy loan processing. 

More Income Than Liabilities 

The lender will approve your loan application based on your income. Your income and liabilities decide how much you can afford. For example, if you seek a loan beyond your repayment capacity, the lender will simply reject it. Therefore, take stock of your existing debts and earnings beforehand. Besides, an affordable loan amount makes the repayment process quicker. 

Lenders usually keep the equated monthly installment (EMI) lower than, or equal to, 40% of your monthly salary. For instance, if your monthly salary is Rs.50,000, you can use up to Rs.20,000 (i.e. 40% of Rs.50,000) to make loan payments. The rest can be used for day-to-day expenses. 

Also, know the personal loan eligibility and minimum salary requirements of your preferred lender. The eligibility criteria can be checked on the lender’s website. 

Shorter Tenor Means Less Interest Payable 

Sometimes the loan EMI becomes a burden at a later stage. But if you calculate personal loan EMI beforehand, there will be no such issues. Alternatively, you can use an online personal loan calculator to make the process easier. However, be mindful of the tenor you choose because your loan repayment journey has to be hassle-free. You will probably go with a shorter tenor with a higher EMI, if you want to close it faster. But if you plan to make it affordable, you can stretch the tenor further. Besides, a shorter tenor attracts less interest than a longer one. 

If you want to secure the lowest interest rate, don’t just look at banks. NBFCs such as Bajaj Finserv offer personal loans at low interest rates. They also have pre-approved offers for personal loans and other financial products. Their loan offering process is simple and timesaving. Just share a few basic details and check out your pre-approved offer.

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