3 Requirements to Get Better Interest Rate on Personal Loans

Personal loans are one of the most sought out loans in the market. Ever wondered why? This is because any salaried/self employed individual can avail a personal loan. An additional benefit is that you can opt for an instant personal loan anywhere in India, whether it’s in Mumbai, Delhi, Bangalore, Chennai, Kolkata and many more. You can use the loan amount to fund your child’s education, buy jewelry, get a makeover done for your home and sort many other financial obligations.

Should getting a better interest rate on personal loans worry you as a customer?

Yes. Almost every customer wants to get an instant personal loan at a very low interest rate. This is because if the interest rate is high, then you will end up repaying a huge sum back to the Bank in the form of interest money. But if the interest rate is low, then you will end up repaying less interest money to the Bank. Hence, customers look for multiple options until they find the right lender who can offer them the best deal on personal loans.

Ruloans Advice:

Being in the loan industry since the past 20 years, we have understood the importance of interest rate in the mind of the customer. Hence we came up with a portal that would help customers to find interest rates offered by many banks in one page itself. This will make it easy for them to compare different options and decide the best deal for their needs.

However that is not the end of the road. Just because the Bank is offering a lower interest rate, it doesn’t mean you cannot negotiate it with them to lower it down. For this to happen, you need to fulfill certain requirements. This list will take some time for you to complete but it will help you get a better rate of interest on your instant personal loan;

Improve your debt to income ratio:

Quite simply, your debt to income ratio can define how much debt hungry you are. It is wise to clear all your unpaid debts at the earliest. A low debt to income ratio will show the bank that you are very less dependent on debt and you can manage your needs and expenses. Hence please clear all your debts as soon as possible.

Improve your credit score:

As soon as you clear your debts, your next task would be to improve your credit score. You can do this by repaying all your bills and loan EMI’s on time. Doing so over a period of time will help you in improving your credit score. Your major concern here would be to ensure that you do not have a situation with bounced cheques or default in repaying EMI and bills.

Add a co-applicant while taking loan:

Adding a co-applicant to a personal loan has many benefits out of which one is getting an increased loan amount. Yes, a co-applicant can help you get your desired loan amount and increasing your eligibility for getting an instant personal loan. Also, if your co-applicant has a high credit score, it can help you ask for better terms from the lender.

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