Avail Best Personal Loans with the Lowest Interest Rates

Are you looking to apply for a personal loan at a lower rate? You are not the only one looking to do that. 

Many people don’t apply for an instant loan because it involves a higher rate of interest. It is because it is an unsecured loan. 

But with a robust CIBIL score, it is possible to enjoy the best personal loan interest rates

Read on and know the best way to get personal loans at a lower rate! 

  • Use your credit score 

If your CIBIL score is higher, you don’t have to worry about a higher loan rate. It is because you can make the most of the credit score. If it is 750 or more, you can get the loan approval at a lower rate. It is because it denotes that you can manage timely repayments as you have done in the past. You can maintain a higher CIBIL score by paying off your loan and other outstanding on time.

  • Don’t hop jobs 

Many Salaried individuals keep changing their jobs often. It is to enjoy a hike in their payment structures. Lenders don’t trust such candidates creditworthy as they may not make timely repayments if approved. Hence, if you want to avail of the best personal loan interest rates, then you ought to have a stable employment record. Therefore, if you wish to enjoy the best personal loan interest rates, you should not switch jobs. In turn, your stable employment record may help you negotiate for a lower interest rate.

  • Use your past relationship with your lender 

If you have a past relationship with your lender, then you can use it to your advantage. Since lenders are aware of your past repayments and other records, they may approve your request at a lower rate of interest. In turn, it may help you pay lower EMIs and save big.

  • Compare all available loan offers 

Another way to enjoy the best personal loan interest rates is to compare all available loan offers. It is possible to do that on a third-party website. This way, you can compare all available deals on a third-party website and pick one matching your needs and budget. Even if you are able to save a bit on interest charges, it may help you ease off managing your outlays better.

  • Use your employer’s credibility 

If you work for a known company, it may work in your favour to avail of the best personal loan interest rates. Yes, you can use your employer’s credibility to negotiate for a lower rate of interest. Why? It is because when you are employed with a reputed company, lenders are sure that you will receive your pay cheques on time.

You are now aware of the ways you can avail of the best personal loan interest rates. This way, it may be possible to settle for a lower rate and save big on repayments. 

Applying for a top up personal loan with a known lender may help you get approval for a significant amount. It may also let you enjoy instant approvals with faster disbursements. You may also make repayments over a flexible repayment tenor of up to 5 years. 

Bajaj Finserv presents you with pre-approved offers on personal loans, home loans, business loans and more. It is to simplify the processing of the loan. 

You can explore your pre-approved loan offers today by sharing your basic details such as your name and mobile number.    

Implications of Taking a Personal Loan and Business Loan Together

Loans give us instant cash to pay for expenses when we need them. There are several types of loans you can take, and two of the most common are personal loans and business loans.

This post discusses the possibility of taking both these loans simultaneously. Today, you can procure an online personal loan or a business loan a lot more easily than you did in the past. Let’s first compare the two types of loans.

Difference Between a Personal Loan and Business Loan

An online personal loan is an unsecured loan that you procure for personal reasons like medical expenses, home renovation, or a child’s education. A business loan is meant to cover business expenses. Business loan amounts are typically higher than personal loan amounts, and you need more documentation to get a business loan.

Can I Take a Personal and a Business Loan Simultaneously?

Absolutely, yes! The key here is to meet the requirements. If you don’t pose a high risk to the lender, they will be ready to sanction a second loan to you. Here are a few conditions for getting a second loan:

Low Debt-to-Income Ratio

Your debt-to-income ratio, as the name suggests, connects your income to your debt. If you have a high income compared to your total debt, it will increase your chances of a second loan. A debt-to-income ratio below 40% is usually acceptable.

Good Repayment Capacity

Of course, your lender is primarily interested in getting their loan amount returned. As a result, they will pay close attention to your financial credentials. Your bank statements, income tax statements, proof of income, and audited profit and loss statements will all come under scrutiny.

Upon examining your documents, if the lender concludes that you have a good repayment capacity, they are likely to give you a second loan readily.

High Credit Score

Your credit score is a three-digit number generated by India’s premium credit reporting agency, TransUnion CIBIL. It reflects whether you have good or bad credit behavior.

If you are financially responsible and do not default on payments, you will have a high credit score. A credit score of 750 or above is considered good and will be looked upon favorably by lenders, increasing your chances for a second loan.

The reputation Of Your Employer

Lenders will probably like you if you work for a well-known, big multinational company rather than a small, unknown, private firm. This is because you will be perceived as having a stable income with job security and can easily repay the loans.

Income

If you have a high income, you have two advantages. Firstly, you can take high loan amounts, and secondly, you can get the lowest interest compared to the current personal loan interest rates.

The lenders will look favorably on you if you have a high income because you will be more likely to have the money to repay two loans simultaneously. 

Relationship With Your Lender

If you are an existing customer of the lender, especially with a savings account (or if you have some investments with them), they will send you to an unknown person. Therefore, youYou will get more leverage for a second online personal loan or business loan from a lender.

Your Repayment History

How has your repayment pattern been with previous loans, if any? A lender will delve into your previous financial dealings with a specific focus on whether or not you paid off your loans promptly. If you did that, you are likely to pay them in a similar fashion, which makes you a preferred candidate for a second loan.

Conclusion

You can get a personal loan and a business loan at the same time. However, take care that you meet the conditions that we have outlined here. And, above all, pay attention to the current personal loan interest rates, which tend to be quite high compared to interest rates of other types of loans.

You can take advice and assistance from Fullerton India, a Non-Banking Financial Company (NBFC) from whom you can get loans with competitive pricing, minimal documentation, and digital processing.