Low-interest rates are definitely one main criterion when finalising a personal loan. Personal loan calculators, like eligibility calculators and EMI calculators, assist borrowers to determine personal loan affordability. Here is how one can get an affordable personal loan:
- Competitive Interest Rate: Key factors driving personal loan growth at an affordable rate include healthy competition among lending institutions. Before taking the plunge, borrowers should explore financial institutions and NBFCs (Non-banking Financial Companies) offering personal loans at competitive interest rates.
- Maintain Good Credit Score: A loan-seeker's credit score is directly linked to a loan interest rate. A higher credit score helps to obtain a personal loan at more favourable terms with a lending institution. Also, maintaining a good credit score is a factor within the borrowers’ control that is considered to offer personal loan interest rates. Repay the existing loans or debts on time, and keep the credit utilisation ratio low to maintain a favourable credit score.
- Consider Pre-approved Loan Offer: Existing customers of a lending institution can take advantage of pre-approved personal loan offers. Lending institutions generally offer lower personal loan interest rates depending on their clients' credit behaviour towards their previous debts. It can help to get an affordable personal loan.
Thus, these factors increase the chances of getting a personal loan at affordable interest rates with trusted and renowned lending institutions. Utilise personal loan calculators to check loan eligibility before making a loan application with the lender.
