Lower interest rate personal loan

Spread the love

Table of Contents

There come times in life when we have a lack of money. At that time, we are looking for a friend or relative who could help us in this difficult time.

If for some reason no one can help you at that time, then it becomes more difficult. In such a time, lower interest rate personal loans can help you. It is also a good option to raise money in an emergency.

You must have seen many such advertisements that talk of giving you a quick personal loan at a low-interest rate. There are many types of lower interest rate personal loans such as home loan interest rate, travel loans, medical loans and, education loans, wedding loans, home improvement loan’s and credit card refinance loans.

However, it is your responsibility to confirm the correctness of the claims before choosing a loan.

Before and after taking a lower interest rate personal loan, keep these things in mind:

Before applying for a loan

Check your eligibility before applying: If your credit card or loan application is rejected, it is a duly registered Transunion small (and other credit bureaus). When this happens, other lenders are alerted and you should be in the future. There can be trouble in taking loans.

So it is important to note here that whenever you think of taking a loan, you should first check your eligibility. When this happens, other lenders become vigilant and may trouble you in getting a loan in the future. That’s why it’s important to keep in mind that when you think about getting a loan, check your eligibility first.

Do not take a lower interest rate personal loan for investment:

A personal loan is an unsecured loan due to which it is offered at a large interest rate. That is why you are advised here that you should not use personal loans to increase your business and invest in such stocks which do not appear to go in your favor.

Borrow only when you can repay it:

Before taking a lower interest rate personal loan, do check your current debt to income ratio. Ideally, the total personal loan EMI calculator of your loan should not exceed 40 percent of your income.

Take a loan for a short time: A lower interest rate personal loan is an unsecured loan so its duration is longer than other secured loans. Most borrowers approve a limited amount (maximum of 5 to 10 lakhs), which they expect you to return within 2 to 4 years.

Read the terms and conditions carefully: Many times you’ve seen some paragraphs in small letters on official documents that you ignore. They are written there for many reasons, never ignore it. Many companies write the most important things in such small letters. Here’s what you should note that if you want to protect yourself from any drone, make sure to read it carefully before signing these documents.

Also Read- The Difference Between Comprehensive and Third Party Insurance

Part-1 video version is also available here

Second Part-2 please see bottom of the article.

Things to keep in mind after getting a loan

Pay on time: Your late payment can hurt your CIBIL score. Delay in the EMI payments can create problems in the future, you may face trouble getting new loans. Also, you may have to pay additional interest along with a penalty for the late payment made by you.

Never use a retirement fund to pay a lower interest rate personal loan:

If you have not repaid the installment of lower interest rate personal loans for a long time, then it can be a big problem for you. The irregularities in paying installment not only reduce your CIBIL score but also increases your tensions, which are detrimental to your health.

Keep in mind that to improve the mistake committed in the present, you should throw your future in the dark. Never use your retirement fund to pay the EMI for a lower interest rate personal loan. Retirement funds are your old age sticks, use it wisely.

Return money when possible. Diwali bonus, salary raise, promotion, freelance work, “there may be several opportunities you have when you have extra money and use them to pay your debt installment.”

Keep an eye on fluctuations in interest rates: According to RBI guidelines, the base rate often undergoes minor changes, which in turn affects the interest rates charged by lenders.

If another lender offers a better loan rate, you can get your loan refinancing. However, before you decide this, you should talk to your debt manager because you can come across valuable customers they don’t want to lose.

Eliminate old loans before taking a new lower interest rate personal loan: It can go against you by continuously taking unsecured loans. Often seen people are paying personal loans even after they have enough income, which might reduce their CIBIL score. By doing this, you may have trouble taking a loan in the future.

How to take a personal loan?

A lower interest rate personal loan fulfills your sudden need for money, Suppose there is a marriage in the house or a new house or some kind of medical emergency, then a personal loan is a perfect and simplest option.

You can use personal loans to fulfill any of your needs, so it is better than other loans.

Determine your needs

Identify your needs and see how much loan you need. For example, your house is under construction and you need 1 lakh or you are going to get your first car for which you need a loan of up to 2 lakh. Make sure that you choose loans that you can repay easily.

Know that you are eligible to take a lower interest rate personal loan?

Once you have determined the loan amount, check your eligibility. Using a personal loan app, you can easily check how much loan you can take. Keep in mind that it depends on your monthly income.

Plan to repay your loan

Use the facilities you get from any personal loan company, choose the EMI as per your choice, and select it according to your monthly income. Set the EMI so that it does not affect your pocket and health.

Apply for loan

Collect all the documents from the phone itself and get money directly into the account. You will need ID proof (PAN card, Aadhaar card), address proof (rent agreement, Aadhaar card), income proof (bank statement), and a photo.

Once the document is completed, after a few hours will check your loan and approve your loan and you will get a loan in the account of your choice in a few days. EMI will also be charged from this account as per your convenience.

Why choose a lower interest rate personal loan?

Lower interest rate personal loans are different from conventional loans in many ways, due to which they are better and prove to be helpful in times of need. It completely depends on the main principles and for personal loans, equal documents are required.

Personal loans are the best because of low-interest rates, early approval, and small EMI. Personal loans have proved to be most effective in times of need,

Documents required for lower interest rate personal loan:

Aadhaar card
Pan card
Voter ID card
Address proof
Salary slip
Bank statement

How to calculate personal loan EMI?

Checking eligibility for personal loan is easy and convenient. All you have to do is open the eligibility calculator and enter some details such as:

Your current place of residence
date of birth
Monthly income
Monthly expenses

Here is the list of companies which gives lower interest rate personal loan:

Citi bank:

Citi bank personal loan interest rates start at 9.99%.
You can calculate the EMI of Citi bank from here https://www.online.citibank.co.in/products-services/home-loans/home-loan-emi-calculator.htm

State Bank Of India:

SBI personal loan interest rates start at 10.50%.
SBI personal loan interest rate for salary account ratio less than 50%.
You can calculate the EMI of the SBI personal loan calculator from here https://sbi.co.in/hi/web/student-platform/emi-calculator

HDFC:

HDFC personal loan interest rates start at 10.99%.
HDFC personal loan interest rate calculator is here https://www.hdfcbank.com/personal/tools-and-calculators

Part-2 video version of the article:

Lower interest rate personal loan