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Get To Know How to Get a Personal Loan at Low-Interest Rate

Personal loans have emerged as the most sought-after financial tool in the past few decades. They have helped numerous people in fulfilling their urgent financial requirements and meeting financial commitments. Now with online loan apps applying for a loan has become easier than ever. It just takes a few simple steps and the funds will reflect in your bank account instantly. However, with this ease of financing comes the responsibility of managing your finances right. So, while applying for a personal loan you must make sure that you are getting the best possible interest rate on your loan. This will help you save big time on interest pay out, especially if you opt for larger loan amounts or longer loan tenure.

Read this article to discover some of the amazing financing tips that will help you get a personal loan at the lowest interest rate.

Know How to Get a Personal Loan at a Low-Interest Rate

Here are a few tips that you can try to get a low interest on your next personal loan:

1.      Don’t Underestimate the Power of Your Credit Score

A credit score is a 3-digit figure that ranges from 300 to 900. A strong credit score improves your capacity to obtain fresh credit and allows you to obtain the required loan amount with an acceptable payback term at reasonable interest rates. Borrowers with higher credit scores are more likely to be able to get personal loans with lower interest rates.

A personal loan is an unsecured loan and the only way the lender can be sure of your repayment capability and attitude is through your creditworthiness. A good credit score demonstrates sound financial management and increased credibility as it is a report generated by your previous debt repayment history.

2.      Look into multiple lenders

While looking for a loan, it is very crucial to browse through all your options. Sort out different lenders according to their eligibility criteria, interest rates, processing fees, and other charges. Download a few online loan apps and compare the terms and conditions of these lenders. This will enable you to haggle for the best rate of interest. Equipped with this knowledge, you can also negotiate with the lender of your choice for a competitive interest rate.

Always keep in mind that even a seemingly little variation in interest rates might result in considerable savings. So don’t hesitate investing your time to research and find the best interest rate available in the market.

3.      Look Out for Festive Offers

During festivals, we are flooded with offers and discounts on every item. Whether you visit a mall or browse through the e-commerce sites, they are ripe with offers during these times. Well, these promotional offers and deals are not just limited to your shopping spree. Many financial institutes offer loans at discounted interest rates during this time of the year.

So, if you are planning to avail a personal loan and it’s not that urgent, then you must wait for the festive time. You might just get the lower-than-average personal loan interest rates, which will save you a huge deal in interest payouts. You may also check your loan app to see if there are any pre-approved personal loan deals or limited-time reductions that you can take advantage of right away.

4.      Make Use of Your Networking Skills

If you already have a great relationship with a bank or lender, then you might get a great deal on your personal rate interest rate from that lender. Having a good relationship with the lender does help in every step of your loan process.

Since, the lender is aware of your responsible credit behaviour, they are more certain of your repayment capability. Also, retaining their existing customers is one of the top-priorities for all lending institutes as new conversion involves a lot of cost. In addition to this, your loan application process gets much simpler as the lender already have your KYC and other essential documents.

5.      Show off your Employment Card

Long-term career stability is advantageous for obtaining a personal loan at lower interest rates. Lenders prefer candidates who have a minimum of one year of job experience and six months of experience in the current company.

Personal loans with better terms and lower interest rates are commonly made available to employees of recognised public and commercial organisations. Employers working in MNCs are often offered best deals in personal loans. This is because of the job stability and repayment capacity of these individuals.

6.      Put Your Mathematical Skills to Use

It is normally necessary to study how a certain lender sets the interest rate imposed on personal loans. Some lenders offer loans at a fixed interest rate or while others offer a floating interest or reducing interest. A flat interest rate calculates interest on the total loan principle throughout the entire repayment period. On the other hand, in a reducing/ decreasing interest rate, the interest on a personal loan is only computed on the outstanding principal. As a result, applying for a personal loan with a declining interest rate may cost less than applying for one with a fixed interest rate, or the other way around.


While availing a loan has become easier than ever, getting the best deal on an instant loan can be a bit risky. But with proper knowledge and the right loan app, you can get the best loan available in the market. Knowing about the different types of interest rates, reading the fine print of each lender and having some basic knowledge about the financial world can help you make wiser decisions!

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