Low-interest personal loans are the simplest way to tackle your urgent financial needs. From finance your child’s wedding to booking a vacation with your partner, you’ll be able to bankroll all of your needs with a personal loan. But, obtaining a loan at the most competitive rate is very important. this will assist you make repayments with ease. So, finding the best rate is an absolute should.
Here are some of the best ways to get good deals on personal loans from banks as well as NBFCs.
1. Improving your credit score
If you want to get better deals from banks, then it is highly essential to possess a good credit score. The credit score is used to determine the past credit history of any employee. As you might have been aware of the fact that personal loans are unsecured loans, banks require a proper investigation before letting out money. If the bank finds an applicant possessing a very good credit score, then it thinks of a rebate on the rate of interest. Therefore, if you want to have the best deals on personal loans, you need to maintain a very good credit score. The credit score can be checked online from various credit unions. This can give you a sense of your CIBIL score. If you find your scores are not up to the mark, then you can wait for some days.
2. Making timely repayments
It is at all times a good practice to keep your credit balance as low as possible to boost your credit score. If you have taken any loan from banks or NBFCs, make sure you repay then within the stipulated time. All these healthy practices will aid the credit score to improve. When you have a higher credit score, the bank would likely give you loans at a better rate of interest.
3. Compare and Select the Correct Lender
Even if you have an account in a particular bank for many years, don’t ignore the deals and offers put out by the other banks. You need to compare the rates of interest of different banks prior to deciding on a particular lender. Make sure that you go through all the given terms thoroughly to learn the various hidden costs as you may get a low rate of interest, but hidden costs can increase the overall charges.
4. Availing online personal loans
It is now possible to avail personal loans over the internet. You can get handsome discounts from lenders as well as many exclusive goodies. The e-lenders offer attractive discounts and flexible terms. The eligibility criteria of the e-lenders are a bit relaxing as compared to their counterparts in a brick and mortar branch.
5. Shorter period Personal loan repayment terms
At the time of scheduling repayments, if you choose to repay the loans in a shorter period, then banks can come forward to offer you some exclusive discounts on the rate of interest. Banks provide such offers because the time in which they can get their money back is less and this decreases the overall risk associated. If you save on interest rates, then you can actually save a lot. Therefore, it is at all times considered better to go with a shorter loan period than opting to go for longer repayment terms.