Use these expert tips to get the best interest rates on a personal loan:
- Improve your credit score – A credit score of 700 or above can ensure that you get a personal loan at low-interest rates. It must be backed by a good credit track record. You can improve your credit score by ensuring timely credit card bill payments and loan repayments.
- Work on a good repayment track record – Your loan repayment track record also determines the interest rate offered on a personal loan. Banks prefer to lend to applicants who have not defaulted in recent history. Therefore, maintain good discipline in loan repayments at all times.
- Make your professional credentials work for you – You can use your professional credentials to easily qualify for a personal loan and avail of competitive interest rates on it. If you have a high income, you will easily be able to make regular loan payments. This increases your chances of getting a loan approved easily and at better interest rates.
- Maintain a good relationship with the bank – Maintain loyalty with your bank by ensuring sufficient history of account opening and retention. This can improve your eligibility for a low-interest personal loan.
- Compare interest rates – Compare the interest rates offered by various banks before choosing one bank that offers the lowest personal loan interest rates. Opt for banks that allow paperless online applications for personal loans since it will allow you to enjoy instant loan disbursal.
By implementing these tips, you can avail low-interest rates on a personal loan. This way, you can enjoy the financial cushion offered by the loan while saving on additional interest expenses.