Going on a long vacation to the suburbs, the mountains across the country or simply the beach for a glowing suntan has been on everyone’s bucket list at least once. Do you not have enough stacked up in your savings account for a sweet escape from the long hours of hustle in your daily life? Do not sweat it out, personal loan providers have your back. The major benefit of an easy personal loan is that there is no requirement of pledging away your assets as collateral or security.
A personal loan application is uncomplicated, and one can effortlessly have it approved at a lower-than-usual personal loan interest rate. It is the best financial instrument that can take you through a sea storm of a financial crisis, you still have to be cautious while applying and pay attention to every detail else you’d drown into debt.
There are numerous banks and financial institutions that offer easy personal loans with interest rates as low as 7.90% per annum to as high as 49% per annum. Therefore, you must do enough research before applying for a personal loan concerning which loan scheme best suits you and your financial condition.
Tips For an Easy Personal Loan
If you are availing a personal loan, the following tips can help you acquire it at a cheap personal loan interest rate:
Compare Loan Schemes:
To avail of a personal loan with a competitive interest rate, you must compare the different loan schemes available in the market. You must consider factors such as urgency, convenience, processing fee with the GST, maximum loan amount, loan tenure, prepayment fee, part payment fee, disbursal fee, EMIs, charge on outstanding EMIs, and the interest rate.
Improve Your Credit Score:
Your creditworthiness is determined by your credit score. Higher your credit score, the better your chances to get a loan at a cheaper interest rate. Banks and financial institutions fancy and prefer applicants with credit scores of 750 or higher. If you have a credit score below 750, you must start looking for ways to improve it. You can improve it by reducing your credit usage, don’t use more than 30% of the limits and even if you are not using your older credit cards, keep them open.
Clean Up your DTI Ratio:
The debt-to-income ratio indicates how much of your monthly income is going towards the repayment of your previous debts. You can calculate your DTI Ratio by summing up all of your existing EMIs and dividing it by your gross monthly income. If your DTI is greater than 40, you must not push yourself towards another loan as it might lead you into a debt trap.
Avoid Missing Repayments:
With every missed credit card or loan repayment, your credit score experiences a downfall. Loan providers often take the repayment history into account before settling down at an interest rate for the loan you have availed for. Applicants who have paid off their credit card bills and EMIs on time are provided with cheaper interest rates.
Keep an Eye Out for Offers:
Just like other commercial institutions, banks, and other financial institutions hold up special offers on loan plans during festive occasions. You are bound to get a lower personal loan rate of interest during such seasons.
Negotiate with the Lender:
If you are an existing customer of the bank and share a good relationship with them, you can easily negotiate your way into the loan scheme by submitting a formal written request to the loan provider.
How to Apply for a Personal Loan?
You can apply for personal loan in three different ways, by visiting the nearest branch and traditionally completing the procedure, by browsing the website of the lender and completing the procedure online, and lastly by downloading the app from the play store and applying using the app.
We are going to give you a detailed step-by-step guide on each of the procedures so that you can apply for a loan according to the way you like.
Online procedure:
- Browse your lender’s online webpage.
- Fill out the application form on the application page.
- Upload all required paperwork online.
- Once you have completed the application process, a representative from your lending institution will contact you.
- Give the lender adequate time to review your documents and application form.
- Once the verification procedure is finished, the loan money will be credited to your bank account.
Offline procedure:
- Visit a local branch office.
- Through discussion, make a representative aware of your unique requirements.
- The representative will subsequently begin the loan application process.
- Your loan will be granted once the representative has finished the process.
- Lastly, make copies of any necessary papers for verification.
Applying Using App:
- Get the app from the Play Store.
- Check the eligibility criteria.
- Select your preferred loan amount and EMI amount.
- Enter your information, including name, income, the loan’s purpose, and PAN card number.
- Complete the KYC process.
- Enter the information for the bank account where you wish the funds to arrive.
- Wait for your loan to be approved in real-time.
- Digitally sign the loan agreement and eMandate.
- Finally, your account will be credited with the loan amount.
Availability of Instant Personal Loans
Now there are many existing banks, peer-to-peer lending platforms, and non-banking financial institutions that offer and approve instant and easy personal loans which are as fast as a single minute with personal loan interest rates as low as 1% p.m. You can apply for a loan of up to Rs.5 lakh from the comfort of your own home.
A personal loan application is uncomplicated, and one can effortlessly have it approved at a lower-than-usual personal loan interest rate. It is the best financial instrument that can take you through a sea storm of a financial crisis, you still have to be cautious while applying and pay attention to every detail else you’d drown into debt.
There are numerous banks and financial institutions that offer easy personal loans with interest rates as low as 7.90% per annum to as high as 49% per annum. Therefore, you must do enough research before applying for a personal loan concerning which loan scheme best suits you and your financial condition.
Conclusion
These are basic tips to secure an easy personal loan at relatively lower personal loan interest rates. Though, the above-mentioned tips majorly revolve around the basic eligibility criteria required. You might not end up with the best interest rate by simply following the basics, you must put more work into it.
Choose your loan amount wisely by calculating your EMIs in advance and avoid submitting multiple loan applications, no matter how desperate you are for the funds as the banks would study your financial history in detail, put forth a hard inquiry and it might adversely affect your credit score in the future. Somehow, if you perceive that your profile isn’t strong enough you can add on a co-applicant or even provide an additional income source on the form. These tips and tricks would assure you a great personal loan interest rate.
