Some factors that will impact your personal loan interest rates
Personal loans have become one of the most popular forms of financial products in India. There is no one-size-fits-all personal loan product as each customer will have its own financial requirements and preferences. Depending on your profile, credit score, income source, EMIs and credit card bill, the principal amount and personal loan interest rates would differ.
Thanks to aggregate sites, today, markets are full of attractive personal loan offers for the customers. You can avail as low as Rs 1 lakh and can go up to Rs 30 lakhs for a period of 12 to 60 months. You can avail a loan with attractive interest rates of 10.99% with low processing fee on it. The effective rate will be based on the borrower’s credit profile.
This loan amount can be utilized based on fund utilization, and this is why consumers borrower personal loans to fulfill their financial goals such as home renovation, debt consolidation, wedding expenses, educational funding, business expansion, and more.
Your income, credit score and existing financial commitments will let the banks and financial institute adjust your loan eligibility. You don’t need any collateral or loan guarantor to get approved for a personal loan. With reputed financial institute you can also borrow small amount personal loan with flexible terms and conditions. To avail personal loans, you don’t have to pledge for any collateral and it sets the borrower free from any form of a financial burden.
Here is a quick sneak peek on a few factors that will impact the personal loan interest rates given by the banks and NBFCs:
Income
The income status will help personal loan providers calculate your repayment capacity. Those, who work in listed companies, central and state government, PSUs are considered eligible for better personal loan interest rate offers.
Credit Score
It’s a three-digit number which ranges from 300 to 900 points. It will define your creditworthiness and reflect your repayment history. If you have a credit score of more than 700, you can negotiate with the lenders for low personal loan interest rates and higher loan limits.
Employment History
When you work for more than 2 to 3 years, it proves your job stability and assures a regular flow of income. Self-employed individuals need to prove the business profits and income generation to get qualified for the loan amount.
Other factors
Few other factors that lenders would consider would be your additional income source, existing bills, credit card liabilities, etc. to determine your personal loan amount.
Aggregate sites are the best tool to compare quotes of different personal loan providers to meet your financial requirements. Loan providers will offer low-interest rates, quick approval, and same-day loan disbursal. So, it’s important to take a calm and cautious decision. You should compare various personal loan deals from different lenders before you make the decision. It’s important to know that besides the interest rates, there are other costs involved such as processing fee, prepayment charges, cheque bounce charges, etc. Carefully, assess your need, the overall loan costs and then sign on the dotted lines!
