How to get a personal loan at a low interest rate
Ram, a salaried employee from Chennai, was planning a family holiday abroad. But he was running short on funds. The ticket bookings alone drained out almost all his savings. Added to this were the hotel reservations. The payments for this were pending, along with other miscellaneous expenses. He was worried, but cancelling the trip was not an option. His children were excited as it was their first trip in many years. Moreover, the tickets had been booked and cancellation would involve huge charges. He was looking for some financial help when the mention of a personal loan caught his attention. Simple and easy to avail, he was almost sold on the idea of a loan. Only one thing was making him hesitant—the high interest rates.
A personal loan is the simplest of all loans. But it has one bothersome element—the interest rate. The bank grants the loan without asking for any collateral. So, the interest rate is as high as 24% per annum. This is why borrowers think twice before opting for a personal loan. So, what can be done?
There are ways to avail a personal loan with a low interest rate. Read on to know how:
- Compare before you buy
In India, more than 100 banks and non-banking financial institutions (NBFCs) offer personal loans. A borrower has innumerable choices. The interest rates of personal loans often lie within a specified range of 13.99% onwards to 24% per annum. But, the offered rates vary among different lenders based on their lending practices. So, before availing a personal loan, compare the rates offered by various lenders. This will help you find a personal loan with a low interest rate.
- Maintain a good credit score
Personal loans are unsecured loans. So, the borrower’s credit score is important to get a loan. Individuals with a good credit score above 750 can avail a personal loan at a lower interest rate. Individuals with poor credit scores will have to pay more.
- Choose NBFCs over banks
The lending practices of both banks and NBFCs are similar but for the charge structure. Banks might offer loans at a lower interest rate. But their charge structure is heavy on the borrower’s pockets. This makes the loan more expensive. NBFCs like Bajaj Finserv charge a low interest rate. The charges associated with a personal loan are also low. In fact, Bajaj Finserv offers Flexi loan, which is a type of personal loan. The charges are minimal and you pay interest only on the amount you use.
What can you do?
Ram did some research. He chose Bajaj Finserv for availing a personal loan. You too can avail a personal loan from Bajaj Finserv. Here are some of the benefits:
- The interest rates are low, starting from 13.99% onwards per annum.
- You can check eligibility and apply online. Loan approval happens in an instant and you get the funds in your bank account within 72 hours. You only need minimal documents.
- The charges are minimal. Personal loans under Flexi loans also have the lowest interest rates.
This is how Ram solved his financial crisis. So can you.