Getting a personal loan has now become easier than ever before. All it takes is a good credit history, a few scanned documents, and a fixed source of income. Gone are the days when taking a loan meant hidden costs and sketchy interest rates. But today, with the instant loan app in India, you can secure a loan from the biggest and most trusted firms in just a few clicks. Not just that there are cash loan apps that help you compare the interest rates offered by different lenders and educate you financially, thus enabling you to choose the best option available in the market.
Pro Tips to Avail Personal Loan at Lowest Interest Rate
1. Maintain a good credit score:
The single most effective way to ensure that you get a good interest rate on a personal loan or on any loan product is to have a stellar credit score. In fact, your credit score is directly proportional to how good a deal a lender will give you. People with higher credit scores tend to get the lowest interest rates on personal loans. Always pay your loan EMIs on time. Try to borrow in limited amounts and do not do frequent loan shopping. All these will go a very long way in building a healthy credit score for you.
2. Try reducing the amount you borrow
In many cases,the lenders fix the rate of interest depending upon the money you are borrowing. For example, say you need to borrow INR 1.3 lakhs. The lender may have an interest bracket change at 1.25 lakhs so if someone borrows Rs 1.25 lakhs or less, they may get an interest rate of X but if a person borrows more than that, they fall in the higher interest rate bracket say X+1%. Understandably, if you borrow only INR 1.24 lakhs and make other arrangements for the remaining Rs. 6000, you can get lower interest rates.
3. Do comparison shopping for the best deals
This is perhaps the smartest thing you can do before applying for a personal loan.Comparison shopping means that you should go through a list of different parameters being offered by different lenders. At the very least your list should compare the amount of loan offered for a particular interest rate, EMI you will have to pay per month, loan duration, pre-payment fees, eligibility, processing fees, and any other charges (if applicable). This will allow you to compare the best deals by lenders and sort out the ones that best suit your budget.
4. Borrow from a cash loan app
Today, there are many online apps that are tailored to meet the instant personal loan requirements of young professionals. These are basically short-term loans that are availed to meet specific requirements. The best features of a cash loan app are –online processing without the need to visit a branch, quick and convenient disbursals, the flexibility of use, simple and hassle-free processing, easy documentation, e-statements, and regular reminders.
5. Leverage from special loan campaigns
Today, an instant personal loan is one of the most popular financial tools that helps people fulfill their lifestyle requirements. Owing to this ripe market, multiple lenders run seasonal promotional campaigns to attract and acquire new customers. If you are planning to opt for a personal loan then you must download an instant loan app in India and look out for any promotional campaigns during the festival days. In these special offers, you can get much better interest rates, perhaps even 1 or 2 percent lower than what is the usual rate charged by the lenders. For anyone who is not in an immediate hurry to get a personal loan, waiting for the festive season canbe very beneficial.
6. Maintain a long-term relationship with the lender
Once you have chosen a lender or a cash loan app, it is very important to build a good relationship with them by paying off your loan on time and relying on them for your further credit needs. When you keep on returning to the same lender and they see that you are a highly reliable borrower, they will offer you the best deals in all aspects including interest rates.
Whenever you are about to sign on the dotted line to borrow money, you really need to stand back for a minute and assess if the loan you are taking is the best possible deal for you. Unless you are totally sure that the interest rate is the lowest possible, you need to keep on negotiating and exploring other options. Instant loan apps in India can give you the best deal when it comes to personal loans. Make sure to download the app and keep an eye out whenever you see a future borrowing need.