Picture this: dreams of adventure, home renovations and securing your family's future — all within reach, thanks to a magical financing solution known as Personal Loans. This is a swift process with minimal paperwork, and interest rates that make your wallet sing with joy. Not enough for you? Then there's more! With a bit of smart negotiation, you can lower those rates further, saving you a chunk of money. Let the Personal Loan be your trusted sidekick and take the first step towards your dreams today!
5 ways to get lower Personal Loan rates
1. Select the right lender
Compare the interest rates offered by various lenders before approaching a bank for a loan. Keep in mind that the interest rate is only one aspect of the loan. Select the right bank after considering the loan duration, amount, pre-payment terms and additional charges.
2. Have a healthy credit score
Having a good credit score shows that you pay your dues on time and that you use credit responsibly. Banks provide loans on favourable terms to those who have a good credit score. A CIBIL score of 700 and above is considered healthy by banks.
To improve your credit score, you can -
- Pay your EMIs and Credit Card bills on time.
- Avoid multiple and frequent loan applications.
- Keep your credit utilisation ratio (ratio of amount of credit you’re using to the total credit available to you) as low as possible.
3. Look for special offers
Banks may offer loans at discounted interest rates during festivals, on their anniversary, or other special occasions. Check your bank's website or contact its customer support to see if the bank has any offers coming up. However, make sure that you read all the terms and conditions of the offer carefully before applying for a Personal Loan.
4. Demonstrate your financial stability
Banks prefer customers who have a steady income and are financially secure. Highlight your financial stability through your salary slips, income tax return, employment letters and bank statements to negotiate for lower interest rates.
5. Pre-approved Personal Loan offers
Your bank may offer you a pre-approved Personal Loan if you have a good track record and creditworthiness. Since you are an existing customer of the bank, the loan will be processed faster, the disbursement will be quicker, and you will have to provide only a few / no documents. You may also get the loan at lower interest rates if your track record is favourable.
Axis Bank provides online Axis Bank provides online Personal Loans up to ₹40 lakh at attractive interest rates starting from10.75% p.a., with zero paperwork, flexible repayment plans - in less than a minute! You can transfer your existing high-interest Personal Loan to Axis Bank to enjoy all the benefits. To do so, simply take a new Personal Loan from Axis Bank and repay the current loan.
Negotiating prowess with the bank
- Know the rules: Study the rules and regulations related to Personal Loans before starting the negotiation. You can find these details on the official websites of most banks.
- Be prepared: Keep important documents handy while negotiating for better interest rates. Collect documents like credit reports, salary slips and income tax return copies beforehand to avoid rushing.
Also Read:Instant Personal Loan without documents: Eligibility, benefits & steps to apply
Conclusion
If you wish to get the best loans with a low interest rate, you have to prove to your bank that you are an ideal, creditworthy customer. A healthy credit score, a good repayment history and proof of steady income can demonstrate that you will repay the loan on time.
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.
