Low-interest Personal Loans: beginner's guide

Personal Loans are a great way to finance various needs, from home renovations to consolidating high-interest debt. However, interest rates on Personal Loans can vary greatly depending on several factors.

Maintain a good credit score

A good credit score is crucial for a favourable Personal Loan interest rate. Lenders use your credit score to evaluate your creditworthiness and determine the interest rate for your loan. A high credit score shows that you have a history of responsible borrowing and are less of a risk to the lender.

To maintain a good credit score, pay your bills on time, keep your credit utilisation ratio low, and avoid applying for multiple loans. Using a Personal Loan EMI Calculator can help you understand how your credit score affects your interest rate and monthly payments.

Compare lenders to get the best offer

When applying for a Personal Loan, it's crucial to compare various lenders' interest rates and loan terms to get the best deal. Along with the interest rate, keep an eye out for processing fees, prepayment charges, and other associated costs.

Use a Personal Loan EMI Calculator to calculate your EMI and plan your repayment accordingly. Additionally, ensure that you meet the lender's eligibility criteria, including your age, income and credit score. Considering these factors, you can find a Personal Loan with a low interest rate and favourable terms that suit your financial needs.

Look for seasonal offers

When looking for a Personal Loan, keep an eye out for seasonal offers that may help you save money. Lenders may offer lower Personal Loan interest rates, reduced processing fees and other benefits during festive periods.

These offers can lower your overall loan cost and save you money. A Personal Loan EMI Calculator can compare various offers and determine the most cost-effective option. So, look for seasonal offers when considering a Personal Loan. Always read the fine print carefully to ensure that no hidden charges or conditions may cost you more in the long run.

Qualify based on your professional credentials

When getting a Personal Loan, your professional credentials can play a big role in determining your eligibility and the loan terms. Many lenders offer special loan programs for employees of certain companies or industries or those with high-paying jobs or specific job titles.

These loans may come with lower interest rates, longer repayment periods or favourable terms. Check with your employer or HR department to determine if you qualify for a Personal Loan based on your professional credentials.

They may have information about special loan programs available to employees, or they may be able to recommend lenders who offer loans to people in your industry or with your job title.

Remember to check your credit score and financial history to ensure you meet the other requirements for eligibility for a Personal Loan. By researching and understanding your options, you can increase your chances of getting a low-interest Personal Loan that meets your financial needs.

Conclusion

Getting a low-interest Personal Loan requires effort and research, but it's worth it in the long run. You can secure a low-interest Personal Loan and save money by maintaining a good credit score, comparing lenders, looking for seasonal offers, and qualifying based on your professional credentials.

Axis Bank offers Personal Loans with a maximum loan amount of ₹40 lakhs and a maximum loan tenure of 60 months. The interest rate for the loan starts from 10.49% p.a., and the processing fees can be up to 2% of the loan amount, plus GST.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision