Personal loan interest rates vary from lender to lender. However, all lenders follow the same basic principles while approving a personal loan application. The following are 4 easy tips to increase your chances of getting a lower interest rate on a personal loan.
Choosing the right loan tenure helps to spread out your repayment obligations evenly without stressing your finances. Use a personal loan calculator to choose the right loan tenure. Ensuring that the sum of the resulting EMI and existing EMIs doesn’t cross 40% of your monthly income could lead to better terms.
Use a personal loan eligibility calculator to get an estimate of the maximum amount you may be able to borrow. Ensure that the amount you apply for is within this range. If you need a larger amount, consider paying off existing loans, adding a co-applicant (with a good repayment capacity & credit score), or taking a secured loan against property.
Lenders often come out with limited-period special offers on personal loans in the form of lower interest rates for eligible borrowers. Look out for such offers to avail discounts of personal loan interest rates.