In your day-to-day life, there are many situations where you face financial emergencies and have to take loans. Due to rapidly increasing expenses, most people find getting loans with better options difficult. Personal loans interest rates are, generally, an advantageous way to get funds when you are in a crisis. You can use the loan for holidays, medical emergencies, education, weddings, home renovation, business development and so on.
Features of personal loans
Compared to traditional ones, personal loans are a convenient method to arrange funds when needed.
- There are no hidden charges while applying for a personal loan.
- As it is an unsecured loan, there is no need for you to submit any security.
- The loan will be approved instantly after a quick KYC verification.
- Transfer of loan amount to your account will occur within 24 – 48 hours.
- Minimal documents are needed to verify KYC, such as PAN, Aadhaar, bank statement etc.
- You get a flexible loan tenure from 6 months to 60 months. You can choose it according to your capacity.
You can check out Buddy Loan to get a personal loan quickly with minimum documents.
Tips for getting low-interest rates
Before approving your loan, lenders observe factors such as the amount of loan you applied for, your repayment capacity and so on. Differ from secure loans, interest rates for personal loans are higher. Hence, while applying for a loan, you should try to get feasible low-interest rates. There are some elements which help you to get low-interest rates.
- Maintain a good credit score:
You must obtain a good credit score by clearing your payments and dues on time. If you have a score above 700, then there is a high chance for you to get a low-interest rate. You can quickly get a stellar score by checking your credit score and maintaining a credit utilization ratio of upto 30%. If you have taken a guarantee or co-applied with someone, you should monitor the repayments properly to avoid any harm to your credit score for both primary and co-applicants. Don’t know your credit score yet? Check out Buddy Score.
- Maintain a good repayment history:
You should always make your monthly payments and repay your dues on time. With this, you will have a responsible credit history which you can negotiate for better deals with the lenders.
- Compare interest rates:
According to your loan eligibility, always examine each lender for a better option. During festive seasons, some lenders provide offers on interest rates, which you can use only after analyzing it well.
- Check the interest calculation method:
You can check how much interest you will pay even at a low rate.
- The credibility of the employer :
If you are an employee of a reputed organization, it might help you get a better interest rate choice.
Conclusion
Using these tips, you can attain a good credit score and get better interest rates in your favour. Eventually, you can get your finances managed without paying too much interest.
