Are you facing financial problems to fund the wedding, vacation, higher education, medical emergency or any other emergency situation? Are you planning to apply for a personal loan to meet these requirements? Then, before loan application, you must be aware of certain factors related to a personal loan. The rate of interest on such loan is higher than any other types of loans. So, you must be aware of the ways to reduce the interest rate and get the loan at a lower rate of interest.
Maintain a Good Credit Score
Lenders check your credit score or CIBIL score before giving a loan approval to check your creditworthiness. If you have maintained a good credit score of above 750, you may be offered a lower interest rate on Personal Loan, or you can bargain with the lender to give you lower rates.
Have a Clean Repayment History
If you have been a defaulter of a loan in the past or even if you have missed a single EMI, it will be reflected on your transactional history or repayment history. So, it is important to maintain a sound repayment history. This is essential as it allows you to bargain for a Personal Loan interest rate.
Review the EMI Calculation Method
You must check the calculation method of EMI and the interest of a personal loan so that lenders do not include any hidden charges along with your interest rate, which will eventually increase your EMI amount and the interest payment.