5 Ways To Qualify For The Lowest Personal Loan Rates
Technology has changed the course of each individual’s lifestyle. Every aspect of our lives has been affected by technology, and finance is one sector that has undergone a massive transformation. Where earlier there were a handful of financial instruments, now applicants have a wide range of options available to choose from.
This financial transformation has also resulted in the rising popularity of personal loans. Many people opt for a personal loan to meet their expenses, both personal as well as professional. Everything can be managed through personal loans without a hustle — from medical costs to vacation costs and education costs to business expenses.
Eligibility Criteria for a Personal Loan
Due to market competition, different lenders offer different personal loans interest rates on their personal loans. As easy as the personal loan may sound, it is only provided to individuals who qualify the eligibility criteria of a personal loan. Here are the eligibility criteria for a personal loan stipulated by an NBFC for reference:
a) Applicant must be a salaried employee at a public or private organization or a self-employed individual aged between 21 and 60.
b) For salaried applicants, the monthly salary must be Rs 25,000 or above.
c) For a self-employed individual, the minimum yearly profit after tax is determined based on profession/industry.
Qualifying for the lowest personal loan rates
All individuals who meet the eligibility criteria will be able to apply for the loan, but it is essential to find a lender that offers a lower interest rate. It can be done by keeping the following five points in mind:
1.Processing fee: Apart from the regular loan amount and the interest rate, some lenders also charge an extra processing fee. Make sure that you check with the lender about the miscellaneous processing fee being charged. While this will not impact your interest rate, it will lower the amount you pay the lender.
2.Fill in your details carefully: Your first communication and impression of the lender are through the application form. So, make sure that you mention all the necessary information carefully and correctly. Before submission, make sure to check your application and see if all the required boxes are ticked. Your application form will play a significant role in determining your loan amount and interest rate.
3.Credit history: To verify that you fulfill the lender’s criteria, you must submit the required documents for a personal loan. In most cases having a minimum credit score is also part of the eligibility criteria. Therefore, you should find out your credit score from one of the valid credit bureaus and work towards maintaining a good credit score. For example, a CIBIL score of 750 or above is considered appropriate for the approval of the personal loan.
4.Loan amount: Higher the loan amount, the higher will be the interest you pay. So before applying for the loan. Therefore, calculate your expenses and apply for the loan accordingly. Excess funds might help you cover some miscellaneous expenses, but that will also raise the loan’s interest.
5.Repayment of the loan: Taking a personal loan is a great tool to take care of your expenses, but do not get stuck in the trap of endlessly renewing loans. So, make sure that before you finalize the loan, you use the EMI calculator to understand your monthly debt and make necessary arrangements to repay your loan.
Getting a personal loan is simple, with everything going digital. However, it is difficult to find the right lender who understands your requirement and accordingly provides the funds at a lower interest rate and your preferred tenure. A personal loan comes with flexible tenure and an affordable interest rate of 11.99%.