To meet urgent financial requirements, you may need to acquire personal loans. Digital banking has made it convenient to apply for a personal loan and receive funds in your account within a few hours. Although the loan application is easy, you need to search for the bank offering the lowest interest rates to make your loan cost-effective. While you can compare various personal loan interest rates online, there are a few ways to get the lowest personal loan interest rates.
Ways to find the lowest personal loan interest rates
Since personal loans are unsecured, the interest rates are higher than other forms of loans. However, following a few methods can help you get the lowest personal loan interest rates. Following are the ways to get the best interest rates on personal loans:
- Maintain a good credit score: Banks and financial institutions check your creditworthiness through your CIBIL score. A good credit score of 750 or above ensures a lower interest rate since you possess less risk to the lending bank. With higher credit scores, you are in a better position to negotiate interest rates with the bank.
- Compare various lenders: Personal loan interest rates may vary from bank to bank. You need to do extensive research and compare the rates provided by multiple banks. Detailed analysis ensures you make the right decision while applying for a personal loan. IDFC FIRST Bank offers competitive personal loan interest rates starting at 10.49% per annum. In addition, you get a prolonged loan tenure of up to 60 months.
- Apply for personal loans during seasonal offers: Festive seasons and other events can provide you with additional rebates and discounts on personal loans. The lenders and banks update their offers periodically through SMS, emails, and advertisements. Keep eyes on such offers to get attractive deals on personal loans.
- Timely repayments: Maintaining timely repayments ensures a high credit score. It also helps you to convince the lender about your financial management skills and get lower interest rates on personal loans.
- Employers’ credibility: Working for a reputed public or private organisation can help you get an additional discount on personal loan interest rates. If you have a high salary and work for an established organisation, you can get low-interest rates and higher loan amounts on the grounds of your professional stability.
Financial practices to get the lowest interest rates on personal loans
In addition to the above mentioned methods, you can practice the following to get affordable interest rates on personal loans:
- Make repayment before your due dates
- Clear all your debts as soon as possible
- Avoid using more than 50% of your credit card limit
- Avoid taking multiple loans simultaneously
Following the above practices, you can maintain a good credit score and negotiate a better interest rate on personal loans. The leading new age bank – IDFC FIRST Bank offers personal loans at the best interest rates that are flexible and most affordable in the industry. Depending on your profile you can get the best of the personal loan interest rates.