There are many things to keep in mind before taking a personal loan. Like how is your credit score, how is your relationship with your own lenders. Comparison of interest rates on personal loans offered by banks and NBFCs, etc. So that you can easily get personal loan at affordable rates.
Lenders consider several aspects including credit score, monthly income, job profile and employer profile of the loan applicant before approving a personal loan. On the other hand, it is very important for the borrowers to have many important information. That is, if you are being charged more interest than you are. What is your own credit score? Also, what are the clauses for giving loans to lenders. However, different lenders are offering different interest rates on personal loans. The interest rates are determined by considering all the above mentioned aspects. If you also want to take a loan at affordable rates, it is very important for you to follow some things.
It is important to maintain a good credit score
People with a credit score of 750 and above are more likely to get the loan approved. Such customers are considered to be more financially disciplined and hence carry less credit risk to the lenders. Lenders may offer preferential interest rates to loan applicants with high credit scores. According to experts, it is important to follow healthy credit practices like paying your EMIs and credit card bills on time, limiting the credit utilization ratio within 30 per cent, avoiding monitoring of loan accounts that are guaranteed or co-signed. Develop a habit of reviewing your credit report at regular intervals. By doing this you will get a lot of time to improve your credit score. You can get a free credit report each year from each of the credit bureaus. as an alternative,
Maintain a good banking relationship While
going for a personal loan, you should inquire from the banks and non-banking finance companies with whom you have existing customer relationships. Many personal loan lenders offer loans at the desired interest rates to the customers due to the good relationship with the customers. Such banking relationships may take different forms such as current, savings, salary or fixed deposit accounts or existing loans or credit cards. Therefore, those looking to avail a personal loan should first approach the bank and NBFC with whom they are maintaining an existing banking and lending relationship. The interest rates and other loan facilities they offer can then be used as a benchmark to compare personal loan interest rates from other lenders.
Interest Rate Comparison In
today’s digital world, it has become easy to compare interest rates among various loan offers by various banks and NBFCs. So, you must do the research before submitting the application form. According to experts, the interest rates for personal loans of banks and NBFCs may or may not be very different. These interest rates range from 10 per cent to 24 per cent per annum. Therefore, those who are planning to take a personal loan should compare the offers of as many lenders as possible before choosing a particular lender. However, when comparing various personal loan offers, do not just compare the interest rate. You should also evaluate other loan facilities such as processing fees, loan amount, repayment tenure and prepayment charges before finalizing a particular lender.
