Keep these things in mind to get low interest rate on personal loan
your job
The personal loan interest rate also depends on the type of job you have and your employer. The lender here checks whether your company pays the salary on time or not. Employees of a financially weak company and irregularly paying salaries may face problems in getting loans. Such people get loans at relatively higher interest rates.
your income
If you are an employee of the organized sector and have a regular income, then it will help you to get the best deals on personal loans. This makes the lenders confident about your ability to repay the EMIs on time. If your income is low or irregular, lenders will give you a loan, but the interest rate on it will be relatively high.
CIBIL Score or Credit Score
The credit score or CIBIL score of the customer is first of all by the lender while giving any loan. CIBIL Score) checks. The better the credit score of the customer, the better are the chances of getting a better loan deal. Your credit score reflects the performance of your old loan repayment. If you have a good credit history, then your credit score will also be good. A credit score of 750 is considered sufficient for a personal loan. If your credit score is higher than this, you can get relatively lower interest rates on personal loans.
pre-approved loan
Experts say that to take a loan, the customer should first go to the bank where he has an account, that bank already has the credit history of the customer. Here you will also get a loan of a large amount at a low rate. If you have a good relationship with your bank, you can also get a pre-approved loan.
credit history
If you want a low interest rate on your loan, you should have a clean credit history. If you have a loan in the past, the lender will check whether you are paying your EMIs on time or not. If you don’t pay your EMIs on time, you may find it difficult to get a good interest rate on a new loan. On the other hand, if your old loan is of higher amount, then you will get a new loan of lesser amount.
old loans
If the lender sees defaults in your credit history, you will not be able to get a loan with a lower interest rate. That is, if you have not repaid your old loans on time, then the lender will give you a loan with a very high interest rate or it may even reject your loan application.
debt to income ratio
Even if you work in a reputed company and your salary is also good, but your debt to income ratio is not right, then you will not be able to get loan with low interest rate. This means that you get a good salary, but most of it goes towards repayment of the old loan. The debt-to-income ratio is obtained by dividing all your loan payments by your total salary. The lower the debt to income ratio, the better loan deal you will be able to get.
