In the present scenario when unprecedented occurrences are more likely than ever, availability of financing and its timing can prove crucial for anyone. Not to mention, individuals anyway can need lump sum funding from time to time to fulfill their life goals. Among some of the commonest examples of immediate and long-term financing needs include medical emergencies, child’s education, wedding expenditures, overseas travel, business expenses, to mention a few. Such funding needs can easily be fulfilled with the help of a personal loan in place as these advances come with zero end-use restrictions.
To make financing affordable for all, personal loan interest rates are kept in check too. Several other loan info is worth gathering when planning to avail the advance to fulfill your funding needs. Check them out one by one.
Personal Loan Interest Rates, Fees, And Charges
The notion of personal loan interest rates remaining high is common among many. However, it is not totally true as lenders today vie to provide the best loan facilities to borrowers for several reasons, one among which is the financial welfare of such borrowers.
Even as these are unsecured advances, lenders strive to provide the best rates on these loans that keep them affordable for individuals across borrowing classes. Further, individuals holding the right eligibility can always negotiate for the best rates on the advance and improve overall affordability. Some of the ways to get the best personal loan interest rates to include the following.
- Apply for the loan with all income sources documented.
- Check and work on your credit score to bring it to above 750 before applying.
- Choose a smaller loan amount than your maximum eligibility.
- Select a long repayment tenure to bring down the EMIs and improve repayment capacity.
- Keep credit utilization under 30% of the total available credit.
- Maintain fixed monthly obligations at not more than 50% of your monthly income.
- Repay existing loans, advances, and bills.
- Apply with a lender you already maintain friendly relations with.
- Choose cautiously between fixed and floating rates of interest.
Keeping all these things in mind, you can definitely secure lower personal loan interest rates than offered initially. To better decide on your loan affordability and for a wise borrowing decision, use a personal loan EMI calculator.
Other fees and charges on the loan attract nominal levies as well, which keeps the total cost of the loan low. Make sure to compare lenders to find the most affordable financing option for you.
Eligibility Criteria For Personal Loan
When applying for the loan, make sure to meet all eligibility criteria laid down by your financial institution. It helps improve your chances of hassle-free approval and portrays you as a deserving borrower for the financial institution. Below listed are some important requirements you must meet to be eligible to apply for the advance.
- A credit score of not less than 700.
- Employed with a public/private company or an MNC if salaried; working for at least 6 months in current employment and 1-year overalls.
- Self-employed applicant must have a business vintage of not less than 3 years.
- Age between the minimum and maximum ranges based on occupation.
- Minimum monthly income as per the city of residence.
- Residing Indian citizenship with stability of not less than 1 year.
To establish such requirements and other financial parameters, an applicant must provide the following documents as well.
- Proof of identity
- Proof of address
- Income proof
Check with your lender for any other document requirements and provide so to complete paperwork.
Application Process For Personal Loan
The steps to apply for personal loan are simple and straightforward. Complete the following steps to send your loan application successful.
- Visit your lender’s official website and navigate to the personal loan page.
- There, click on the ‘Apply Now’ option and access the application form.
- Fill up the form with necessary personal and financial details accurately.
- Proceed to provide your loan amount requirements, tenure selection, and submit.
Once the loan application is submitted, eligible applicants can receive approval as well as disbursal shortly.
One must know that affordability of the advance is not only determined by the personal loan interest rates affordability but also loan amount and tenure selection. You must thus make sure that you choose your loan amount and tenure based on EMIs and interest payable computed.
