How to get the best personal loan rates?
Assume you have immediate personal loan requirements. You go to the bank to get a quote and find out that the bank approved you for a loan in the amount of INR 30,000 at an interest rate of 9%. The entire process took no more than half an hour. There is just one problem — after you leave the bank, you realize that their rates are extremely high, and you should have compared your options for getting the best personal loan rates before setting foot into the bank.
Don’t worry you are not alone; most people don't realize that the key to getting the lowest personal loan interest rate is finding the right lender. They all advertise the best personal loan rates, but often the numbers don't add up. But since you have landed here, forget all about it, and take a look at the tips with which you can fulfill your personal loan requirements. Let us begin:
Maintain a good credit score: Credit scores are important to lenders, so you should know where to check your credit score and how it can affect your eligibility to get the lowest personal loan interest rate. You can negotiate better terms with lenders if you have a good credit score.
Always explore your options: Other than banks, there are other financial institutions or platforms that offer personal loans. If you think you meet the personal loan eligibility of most banks, then, it is advisable to compare different lenders. This will help you make an informed choice.
Keep your eyes open for special offers: Many NBFCs or lenders attract borrowers by offering exclusive deals or offers during the festive season. Low-interest rates, low processing fees, and longer repayment periods are some of the offers that you may get during the holiday season. So do not miss such opportunities.
Have a good employment history: Nobody wants to give their money to defaulters. During the evaluation of an applicant, lenders often look into the employment history. So, if you have a stable job and you have a good employment history, then you are most likely to get the lowest personal interest rates.
So, these are some of the ways to ensure you get the best personal loan rates. However, to get a personal loan request approved, one needs to meet the eligibility criteria for a personal loan.
What are the personal loan eligibility criteria?
The below table is a simple representation of personal loan eligibility criteria in India
Personal Loan Eligibility Criteria in India
CIBIL Score 750+
Nationality Indian
Work Status Salaried
Salary 22K or above
Employment MNC, Public or Private Company
Apart from knowing your personal loan eligibility criteria, it is also important to know what documents you will need to submit your personal loan application.
Documents Required for Personal Loan
The applicant is required to submit the following documents while applying for a personal loan:
- ID proof- a copy of a voter ID card/passport/driving license or Aadhaar card can be used as proof of identity.
- Address proof
- Bank statement, generally of previous 3 months or passbook of previous 6 months
- 2 latest salary slips or a current salary certificate with the latest Form 16
The Bottom Line
If you are looking to get a personal loan and have alarmingly high debt, don’t despair. A personal loan can be an excellent debt consolidator and help you pay off your high-interest credit card debt and other loans. If your credit score is low because of previously accumulated high-interest debt, then all you need to do is find the right lender who is willing to give you a chance, and from there it’s all easy. You can check out personal loan offers from IndiaLends, which is a trusted Fintech platform that helps bridge the gap between financial services and unserved consumers with its galore services.
