IndiaLends Advisory

By IndiaLends Advisory

Oct 26, 2018

Ways to Get Best Deal on Personal Loan

The simple rule of economics states one should get as much possible and pay as little as possible. This rule is applicable to the finance sector, especially in the personal loan segment. However, it is always not easy to get a personal loan at a low interest rate.

So where do you go at this time and how do you get loans at low-interest?

You might want to read: 10 Best Personal Loans in India [Updated 2018]

Here are a few ways to get the best deal on personal loans:

Digitisation has helped various sectors, especially the personal finance segment. It has helped around 220 million credit-eligible customers get access to more credit options. The number of digital lending platforms is increasing day by day and therefore are able to assist more people throughout.

Moreover, applying for a personal loan online has also reduced the hassle of paperwork and reduced the time and effort taken by a customer. Nowadays, a customer can simply apply for a personal loan at the convenience of your home.

Related Article: Personal Loan (Online vs. Offline)

When you add a co-signer on board for a personal loan, you are increasing your chances to get easy approval on the same. If your co-signer has an excellent credit score, you can negotiate on the interest rates offered to you. Moreover, you are splitting the risk associated with defaulting the loan as the loan account is under both your names.  

Related Article: Important Things to Consider Before Cosigning a Loan

If possible, you can pledge a collateral. One of the reasons for personal loan offering slightly high-interest rates in comparison to other forms of credit is due to its unsecured nature.

When you pledge a collateral such as a property or fixed deposits, you provide an alternative solution to the lender in a case you default the loan.

Related Article: Is Personal Loan With Security A Good Idea?

One of the ways to find the best deal on a personal loan is by doing an in-depth research on the different interest rates. Only the lender should not assess whether you are right for them, even you should assess the lender before taking the final decision. To find the lender that best suits you, it is important to compare the interest rates in India.

Related Article: Best Personal Loan Interest Rates in India

Your credit score plays an important role in your credit profile. Your credit score is a 3-digit numeric expression which helps the lenders assess your creditworthiness. A strong credit score gives you an excellent chance to get the best deal on personal loans.

Generally, the credit scores fall into the following categories:

Excellent

750 or above

Good

700-749

Average

650-699

Poor

300- 649

 

Related Article: How To Build A Good Credit Score?

IndiaLends can help you get personal loans at competitive interest rates as per your credit profile.

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