These days getting loans has become extremely simple with the easy application and faster sanction process. However, people are wary of applying for personal loans because they are always on the lookout for the best interest rate deals. And lenders don’t give out the secrets to acquiring such deals because it will, ultimately, turn out to be a loss for them.
Here you will learn a few secrets that will help you get a low rate of interest on your next loans. Jump right into it and find out.
- Bargaining can get you a better deal
Lenders need your business just as much as you need them, and this can act as a bargaining chip when you try to strike a deal with them. Before agreeing to the terms of a loan, you will need to have a sit down with the lender and try to negotiate a better deal. More often than not, they budge and give you a concession anywhere between 0.05% and 0.75% but all of it depends on your negotiating skills.
- A good credit score works for you
These days lenders go to many lengths just to find borrowers who have a spotless credit report with a good credit score. This is because they consider such individuals trustworthy and know that they’ll repay the loan on time. If you have a good credit score, which goes beyond 700, there’s a definite chance of you getting a good loan deal with low Personal Loan interest rate. In a case you don’t have good credit score then there is a way to improve credit score that will help you to get low interest rate on your loan.
- Compare multiple lenders
Getting a loan these days means that you will need to conduct a lot of research as lenders don’t often quote the actual rate they advertise. This is why, you will need to visit a few different lending institutions to know the actual rate of interest they are offering. Once you’ve collected information from different lenders, you can compare all of them to pick out the deal that works best for you.
- You shouldn’t have any outstanding loans
Banks and NBFCs are always wary of giving you a new loan when you are already repaying an old one. This is because your borrowing capacity decreases while the chance of you defaulting on the loan increases. Under such circumstances, you will get a loan with a high rate of interest. So, keep a clean record before approaching a lender for a loan.
These are some of the most basic yet important secrets that banks and NBFCs will rarely ever tell you. If you adhere to these tips, getting a low will be well within your reach. rate of interest on personal loan