How to get a lower Interest rate on a personal loan

Personal loans have emerged as a viable financial option for individuals to fund various needs such as weddings medical emergencies vacations etc among others In a highly competitive credit market customers always try to opt for the most attractive personal loan interest rates offered by a lender for the least possible repayment liabilityHowever availing a personal loan at the most affordable interest rate depends on multiple factors and primarily on the prospective borrowerrsquos eligibility respective to a specific lenderFulfilling such eligibility pointers can help an individual successfully apply for a personal loan at the competitive interest rates In short that is how to get low interest rates on a personal loanWays to Get Attractive Interest Rates on Personal LoansLenders take into account several parameters before approving a personal loan at costeffective interest rates Customers can thus benefit from the following pointers while securing a no enduse personal loan at more affordable rates of interest than other applicants ndashu00e2u0097u008fHigh CIBIL scoreCIBIL score refers to the creditworthiness of an applicant with respect to the guarantee of loan amount repayment Lenders consider an applicantrsquos CIBIL Information Report CIR while deciding on the principal amount rates of interest tenors and EMIs for repaymentIndividuals with CIBIL scores of 750 and higher can negotiate with financial institutions to avail affordable rates of interest and suitable tenors on their personal loans Applicants with higher CIBIL scores have a lower chance of defaulting on the loan amount and interest NBFCs thus offer low interest rate on personal loan to those applicants in comparison with individuals with lower CIBIL scoresIn addition lenders focus on impressive CIBIL scores from borrowers because personal loans are unsecured and they do not have the guarantee of assets to fall back on in case of defaulting Higher CIBIL scores are seen as a guarantee of loan amount repaymentu00e2u0097u008fDebttoincome ratioDebttoincome ratio suggests the percentage of an individualrsquos income that is spent on repaying existing debts Fixed obligation to income ratio FOIR is used alternatively for this parameterIndividuals with FOIR below 50 have an increased chance of availing competitive interest rates on personal loans from financial institutions NBFCs also consult an applicantrsquos FOIR to check personal loan eligibilityCustomers who are already servicing previous loans should opt for better debt repayment management techniques to significantly reduce the debttoincome ratio while applying for a personal loan Lenders hesitate to approve loans for individuals who already have to allocate a major portion of their monthly incomes towards the repayment of existing loansu00e2u0097u008fConsistent employment historyNBFCs approve personal loans to salaried individuals who have a stable employment history in the course of their career Individuals with a fixed source of income can also plan their repayment schedule effectivelyAn individual with a fluctuating employment history implies a disrupted income accumulation in the future Lenders perceive these individuals as highrisk customers and thus impose higher personal loan interest rates to ensure interest income in a shorter spanApplicants should consult with lenders on how much personal loan they can get on their salary to plan their finances effectivelyApplicants can avail online personal loan from a host of lenders at costeffective rates of interest and benefit from quick disbursalsVarious NBFCs like Bajaj Finserv offer personal loans up to Rs25 lakh with minimum documentation online and no hidden charges This financial institution also makes availing loans a hasslefree process with preapproved offers on personal loans as well as on other financial products including business loans home loans credit cards etc You can check your preapproved offer by providing your name and phone numberApplicants can avail attractive personal loan interest rates by considering the financial techniques mentioned above A low debttoincome ratio and a consistent employment history automatically increase the chance of a personal loan approvalCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get latest updatesThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever