Whether it’s financing your dream wedding expenditure or paying off your credit card debts, there is a long list that you could do with your personal loan fund. In your sudden and temporary financial crises, a personal loan is your true friend indeed. Since personal loans have gained so much popularity in the last few decades, most people are applying for them because of the excellent features and benefits. There are multiple banks and NBFCs all offering customized personal loans at lower interest rates. Choosing buddy loan always assures a low interest rate on personal loans so that you can meet your expenses with ease and convenience. Availability of low interest personal loans is not difficult. There are few metrics that you need to consider.
Check out the below 5 tips that will let you get quick personal loans at lowest interest rates.
- Maintain a GOOD Cibil Score
Having a credit score of more than 750 is considered to be good to avail low-interest personal loans. A decent CIBIL not only enhances the chance of getting your loan approved but also allows you to select the tenure as per your comfort. This score is the reflection of your financial health and shows all your borrowing or repayment transactions to the lenders. So, maintain the score all-time to receive the lowest interest.
- Repay Your Existing Loans on Time
Stop being lazy and repay your loans timely. Make sure to pay off all your EMIs and debts every month, and it will help you to create a good repayment history. In this way, you can get a better deal whenever you take another loan in the future.
- Compare the Interest Rates with Different Lenders
In the market, multiple lenders are offering personal loans. So, it’s essential to check and compare all the different offers and get the loan that is offering it at a low-interest rate. This will not only save you money but also offer some additional benefits as well. Buddy Loan offers flexible loans at low-interest rates starting at 11.99% p.a.
- Look For Interest Calculation Method
Before you finalize any loan deal, it’s highly important to calculate the payable interest rate on a personal loan. Otherwise, you may end up paying more interest rates at the end of your tenure period. This happens because calculating the interest rate may differ among the lenders, so understand the method first before you go for it. The lender may offer you a personal loan either at a flat or a reducing interest rate. When it comes to flat interest rate, the interest payment is calculated on the total loan amount while for reducing interest rate, the interest is calculated on the outstanding principal amount. Hence, a personal loan at a flat interest rate could cost you more.
The income credibility of the borrower is an important aspect that a lender will always look for to ensure that the applicant repays the loan dues on time. Having a fixed source of income helps you to get a personal loan at lower rates.
Besides checking the lowest interest rate, it’s advisable to consider processing or hidden charges along with other applicable taxes. And keep an eye on the interest rate offers that lender offer. And don’t forget to follow the above tips to receive low-interest personal loans!