Personal loan acts as a flexible source of funds. Whether you’re looking to finance your education, marriage, or vacation, a personal loan is a good option. Conventionally, customers approached banks and financial institutions physically to obtain a loan. It entailed standing in long queues, arranging extensive paperwork, several visits to the bank branch, and other hassles. It ended up putting an additional strain on the budgets of people looking for financial help.
Fortunately, the loan disbursal process has gone digital. Several online platforms have emerged which offer a low personal loan interest rate while maintaining complete transparency. RBI has also supported the growth of such lenders as their lenient approval process helps support financial inclusion.
This article will guide you through the process of getting the lowest personal loan interest rate. So, let’s get started.
Steps on Getting a Low Personal Loan Interest Rate
Every applicant wants a reasonably priced personal loan. To get the lowest personal loan interest rate with minimal hassle, you need to follow the below-mentioned steps.
Mentioned below are some of the points which should be kept in mind before embarking on the credit journey.
1. Do Your Research
For the lowest personal loan interest rate, you should research the terms of the loan beforehand. Calculate the EMIs in advance and plan your future expenditure accordingly. This will allow you to pay your installments on time. You must also take note of factors like tenure and collateral requirements.
Also, visit the lenders’ official websites and social media profiles. Don’t forget to read customer reviews and scan through them for any inconsistencies. Doing in-depth research and comparing numerous options available in the market ensures that you do not face any unexpected expenses.
2. Maintain a Good Credit Score
To continue enjoying the benefits of modest personal loan interest rates, ensure that you are disciplined regarding loan maintenance. Once your credit score is disrupted, getting low-interest rates is challenging.
You can improve your credit score by avoiding multiple loans simultaneously and preferring shorter tenure loans. Higher creditworthiness, in the eyes of lenders, further boosts your chances of getting the lowest personal loan interest rate.
3. Stay Updated
Financial institutions also release seasonal offers, for example, during festivals. Attractive discounts are provided for a limited period. You should capitalise on such opportunities and apply at the right time.
Further, benchmark interest rates keep changing due to dynamic economic scenarios. Keep a watch on the current rate movements. This will make your credit more affordable.
4. Maintain a Good Repayment Track Record
To ensure that you do not have to pay high-interest rates, you must make sure that you pay your loan EMIs and credit card bills on time. Doing this will help you maintain a good repayment history that can further help to negotiate a better rate of interest on personal loans.
5. Choose the Right Loan Tenure
Choosing the right tenure helps to spread out the repayment obligation easily without any hassle. You can use a personal loan calculator to choose the best loan tenure that can suit your budget.
6. Apply for the Right Amount
While applying for an instant loan, always ensure that you apply for an amount that lies within your repayment range. If you need a huge amount, you must first consider paying off your existing loans or adding a co-applicant to save yourself from the high personal loan interest rates. Never go beyond your limit to stay financially stable and secure.
Conclusion
Personal loan interest rate is the most crucial determinant in choosing a lender. Digital lending apps fare much better in this area. As they are powered by advanced technology, their operations are much more efficient than traditional banking channels. They pass on these benefits to customers by offering more attractive interest rates.
If you are looking for a safe and secure medium to meet your monetary needs, then you must go for True Balance. It is the most trustworthy online loan app available for Android users. It offers the lowest personal loan interest rate, starting from 2.4% per month, which is quite low compared to other loan apps.
Moreover, you can obtain a loan as early as within 5 minutes in the range of ₹5,000 – ₹50,000. While applying for an instant loan via the True Balance online loan app, you will not have to risk your asset. The steps to avail of loan are quite easy and straightforward.
All you need to do is download the online loan app, submit the required KYC documents online, choose the preferred loan amount, and submit the application online. With these straightforward steps, you can apply for a loan while staying in your comfort zone.
So, what are you waiting for? Download the app now and get your loan approved in just a few steps.
Also read: Can You Get a Personal Loan Approved on The Day You Apply?
