Many people fail to get a personal loan due to simple mistakes such as not having the required documents and not meeting the minimum eligibility criteria. When lenders provide consumers loans, they consider several factors including the employee profile, credit score, and monthly income. In this blog, we will look at how to get better personal loan rates, in three steps.
1. Have a good bank relationship
When applying for a personal loan, it's crucial to go with NBFCs with whom you already have a connection. Several institutions also know this loan as a fast or top up loan. Several lenders are willing to provide quick loans to clients. However, choose a bank or NBFC with whom you already have a relationship since they give consumers, a lucrative personal loan interest rate.
The bank may be contacted via various channels, including a checking account, a savings account, a salary account, a fixed account, a recurring account, or existing loans and credit cards.
2. Maintain a good credit score
People with a credit score of over 750 have a better chance of obtaining a low interest personal loan. They also have a greater probability of being approved for top up loan. Lenders will look at the credit score to check if the borrower is trustworthy and return the loan within the agreed-upon time frame. Make sure you pay back the loan in full within the agreed-upon time frame to keep your credit score strong and also allow for loan refinancing in case you need it.
3. Comparing the rate of interest
With the advent of technology, it is now easy for customers to compare interest rates given by numerous NBFCs and lenders online. This has made it easy for customers to choose the best interest rate and not apply for the first personal loan offer they get. NBFC interest rates, such as those given by Bajaj Finserv, may range from 10% to 24% per year.
The time it takes for a personal loan to be approved varies depending on the lender. Owing to the ease with which individuals may use the internet, they should examine the many special loan interest rates before deciding on the best lender. However, it is critical to compare more than just the interest rate. Before selecting a lender, people should consider the payback term, loan amount, processing costs, and prepayment penalties.
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