How to Easily Get Low-Interest Personal Loans?
Personal Loans help you cover a lot of routine costs and expenses. Whether you need funds to celebrate a special occasion, or renovate your house, go on a vacation, or for any other personal expenditure, Personal Loans come to your rescue. Some people also apply for Personal Loans online to pay off another debt or to clear outstanding dues, such as Credit Card debts.
Why Do Personal Loans Carry a Greater Interest Rate?
Most types of Personal Loans are unsecured; a boon for all those borrowers who do not possess or wish to offer collateral security. However, the greater degree of insecurity that the lender bears on such loans needs to be compensated by a high rate of interest. If it isn’t, the transaction would not be a financially sensible one for the borrower. The interest rates on Personal Loans are hence much higher than those on secured loans like Home Loan, and you end up repaying more money on a Personal Loan than on its counterparts.
If you wish to minimise your repayment amount and interest expenditure, it is essential that you avail of Low-Interest Rate Personal Loans. You could find such loans online on mymoneymantra.com. We help apply for Personal Loans of up to 50 Lakhs, disbursed within 7 working days from the application date, at highly affordable interest rates and convenient repayment terms. Check out these methods that could help you acquire low-interest rate Personal Loans with relative ease.
Know, Monitor and Improve Your Credit Score
Those who have applied for and borrowed a loan before, know how much importance your credit score carries. For those who haven’t, its significance can’t be stressed upon enough. Your credit score determines whether you will get an approval or not in the first place; the interest rate is secondary. It is a measure of your creditworthiness established from your debt history. The lender determines how likely you are to make timely repayments and how likely you are to default on an instalment. If you possess a high credit score, the lender would not only grant you an approval but would also charge a lower interest rate. However, if your credit score is even marginally low, the lender would demand a greater compensation in the form of interest to offset the risk borne by him.
For an unsecured Personal Loan, a credit score of 700 and above should do the job for you. You could check your credit score online by giving out basic personal and financial details. Once you have established your credit score, monitor it regularly. Keeping a close tab on your credit report would help you maintain and improve it. That, in turn, would keep you from committing mistakes that could potentially cause a lot of harm. Maintaining your credit score is not a one-time thing; it is a continuous process. Pay off all your bills and clear your Credit Card debts or loan instalments on time to build and improve your credit score. If you have previously defaulted on a payment, it would require a lot of repair work to get your credit score back on track. Ask your creditors if they would consider removing the reported issue upon a full and final settlement. This step would hold you in good stead for acquiring a low-interest Personal Loan.
Put a Break on Unnecessary Expenditure
Bad spending habits pave the way for a bad credit rating. Impulse purchases and splurging leave you short of cash to pay your bills and debts. At a time when you are seeking approval for a loan, it is best to avoid them.
Try and restrict your Credit Card expenditure to a monthly allowance of 30% of your credit limit. Also, avoid spending too much money on luxury goods and services for the time being. Normal services could of course resume at a later date!
Provide Collateral Security
Securing your loan with collateral security is the quickest and most effective way of lowering the interest rate expectations of the lender. The lender’s risk is virtually nullified once you provide an asset that carries enough monetary value to repay your loan in its entirety. Naturally, the lender would be more than willing to extend a loan, even at a low-interest rate.
Hold a Stable Job for a Period of Time
Applicants who hold a stable job with a reputed employer for a long period of time (ideally a minimum of 2 years) are more likely to be offered a low-interest loan than their counterparts. The organisation’s reputation, continuous flow of income and your tenure at the organisation together act as collateral security. Lenders can trust you to repay their loans as they are confident that your income stream would not be compromised.
Ultimately, convincing economic status is what assures a lender that the borrower will make the repayments on time. Every lender performs a background check before making a decision. If you meet their eligibility criteria, convince them of your ability to abide by the repayment schedule and paint a rosy picture of your financial soundness, the loan won’t just be approved, but it will also carry a low-interest rate.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 18001034004 to know more about our products and offers.
& get instant approval