A personal loan is the easiest and the simplest loan in the market. Unlike other loans, it does not involve any collateral. It is approved at once and needs very few documents. But, if you take a personal loan, you will look for low interest rates, will you not?

Shweta, a professional from Lucknow, wanted funds for a vacation. A personal loan was her answer. She understood the loan terms and conditions, and was happy with the features. But the huge interest rate—above 15%—nagged at her. Her EMIs were high and she felt her pockets burning.

Most people face a similar problem when taking a personal loan. As it is an unsecured loan, the interest rates are high and heavy on the pocket. Is there any way to lower the interest rate?

Actually, there is. You can avail a loan at low interest rates if you:

  • Compare

The personal loan market is saturated with products. Every bank and financial institution offers a loan for your personal expenses. There is no dearth of offerings. As an informed borrower, you should compare the interest rate that different lenders charge. Choose the one that has the lowest interest rate.

  • Improve credit score

Your credit score or CIBIL score determines your creditworthiness. A higher score is good from the lender’s perspective while a lower score spells risk. Though you can get a personal loan with a bad credit score, be ready to shell out higher interest. To enjoy a lower interest rate, you should have the highest possible credit score. So, find out your score, take steps to raise it, and then apply for a personal loan.

  • Understand the charge structure

A personal loan also includes various charges besides the interest rate. Even if the interest rate is lower, be vigilant enough to find out the charges payable under the loan. If the charges are high, the hole in your pocket would be bigger.

So, as Shweta found out, a lower personal loan interest rate is possible. She used the personal loan EMI calculator to find out her EMIs for the loan. The personal loan eligibility calculator also showed that she qualified for the loan. She submitted the required documents. These included her bank statements, identity proof, address proof, photographs, and the like. She paid the loan processing fee as well. By the end of it, she got an affordable loan and went for her vacation.

A personal loan, thus, helps you meet your personal expenses and is easy to get. If you, too, are worried about the high interest rate, there is good news at hand. There are personal loans that are available at lower interest rates. And you now know how to get such personal loans at a low interest rate.