Here are a few smart tips that can help you get the best rate on your Personal Loan. Read on.
Interest rates on loans have a huge impact on the overall cost you pay for borrowing money. So, if you are planning to apply for a Personal Loan anytime soon, here are 4 smart tips to help you get the lowest rate possible.
Improve Your Credit Score
Your Credit Score shows your creditworthiness based on how you have managed your loans and Credit Cards in the past. Lenders generally offer a lower interest rate if you maintain a Credit Score of 800 and above as they see you as a low-risk borrower.
Your Credit Score also determines whether you will be eligible for a loan or Credit Card. If you have a poor score, you won’t be eligible for a lot of offers and lenders will also charge you a higher interest rate than someone who has a better Credit Score.
Click here to check your FREE Experian Credit Score in less than three minutes!
Additional Reading: 4 Extremely Simple Ways To Ace Your Credit Score
Choose The Right Lender:
When you have your Credit Score in good shape, the next step is to choose the right lender. With a plethora of options available in the market, it’s important to compare rates, terms and conditions, charges like processing and pre-payment fee, etc. across lenders.
Next, calculate how much your EMI would come up to. You can use an online Personal Loan EMI calculator that can help you calculate your monthly EMIs in a jiffy. You can then compare the EMIs with different lenders and choose the one that fits your budget. Also, understand the terms and conditions of the loan properly to avoid any nasty surprises later.
Look out for special offers:
Last, but not the least, banks and other financial institutions often offer special rates and discounts on loans and Credit Cards especially during festive seasons. Look out for these limited period offers that can help you save big on your Personal Loan.
Additional Reading: Everything You Should Consider Before Getting A Personal Loan
Check out these low-interest rate Personal Loans from popular banks:
Tata Capital Personal Loan
Interest Range: 11.75%-18.00%
Eligibility Criteria:
- You should be at least 24 years and less than 55 years if you are salaried. For self-employed individuals, the maximum age limit is 65 years.
- If you are a salaried individual, it’s mandatory for you to have worked with the current employer for at least 1 year.
Features:
- It offers loans up to Rs. 20 lakhs; maximum loan tenure of 6 years is available.
- Balance transfer, top-up loan, and e-approval facility is also available.
Fees and Charges:
- 25% part-payment is allowed within a year of taking the loan at no charges. If the payment is more than 25% of the outstanding principal, the bank will charge 2% closure charge.
- It doesn’t charge any processing fee.
- Foreclosure charges: Rs. 5,000 after 12 months, depending on the loan amount. 4.5% of the principal outstanding at the time of foreclosure is applicable if it’s done via balance transfer.
Citibank Personal Loan
Interest Range: 10.99%-17.99%
Features:
- It offers loans up to Rs. 30 lakhs depending on your income, eligibility, nature of job and repayment capacity.
- No guarantor is required to apply for this Personal Loan.
- The bank doesn’t charge any processing fee.
Fees and Charges:
- Foreclosure charges: 3% of the principal outstanding after repayment of 12 EMIs.
- There’s no part-payment fee.
IndusInd Personal Loan
Interest Range: 11.00%-16.75%
Eligibility Criteria:
- You should be at least 21 years and less than 60 years. The maximum age limit for self-employed individuals is 65 years.
- Should have completed minimum two years in employment and minimum one year in the current organisation, if salaried. Self-employed should have at least 5 years of experience.
- You should have a valid ID proof like passport, PAN card, driving license, voter ID card, and photo ration card.
Features:
- It offers loans up to Rs. 25 lakhs depending on your eligibility, income, nature of job and repayment capacity.
- Balance transfer, top-up loan and e-approval facility is available. Part payment option is not available.
- It doesn’t charge any processing fee.
Fees and Charges:
- Foreclosure fee: 4% of the principal outstanding after repayment of 12 monthly installments.
HDFC Bank Personal Loan
Interest Range: 11.25%-21.50%
Eligibility Criteria:
- You should be at least 21 years and less than 60 years for salaried professionals.
- Minimum net monthly income should be Rs. 20,000.
- You should have had a job for at least 2 years, with a minimum of 1 year with the current employer.
- You should have valid ID proof like passport, pan card, driving license, voter ID card and photo ration card
Features:
- It offers loans up to Rs. 25 lakhs depending on your eligibility, income, nature of job and repayment capacity.
- You can take out a Personal Loan without the need for security, collateral or guarantors.
Fees and Charges:
- Processing Fee: Up to 2.50% of the loan amount
- No pre-payment allowed until repayment of 12 EMIs. (25-36 Months – 3% of Principal Outstanding. If >36 Months – 2% of Principal Outstanding)
There you go! All set to apply for a Personal Loan? Go ahead and check your eligibility right away!