personal loan interest rates

How to refinance a Personal Loan?

Loan refinancing is when the outstanding loan by the borrower is fully repaid with a new loan allowing a lower interest rate. Interest rate fluctuations encourage customers to opt for new lower installment loans. Here are a few important steps to consider while applying for a personal loan refinance.

Understand the Requirements

The most common mistake by borrowers in loan refinancing is securing a new higher amount of loan for the outstanding loans due to lower interest rates. Borrowers opting for loan refinancing must carefully calculate and consider the exact amount of the new loan to pay off the outstanding one with lower interest rates.

Check the Credit Score

The timely installments by borrowers and increased income levels might generate better credit stability for borrowers. The borrower’s credit reports are periodically updated by institutions as per their mandate. A better overall credit score and decreased loan amount might allow borrowers to opt for loans with fewer interest rates.

Connect with the Current Lender

Once based on improved creditworthiness, and qualified for lower personal loan interest rates from other institutions, borrowers must connect with the existing lender if they prefer the same or lower interest rate for the current outstanding loan. Since the current lender is already associated with the borrower, they might accept the deal to retain an outgoing valuable customer.

Compare institutions and Apply for Refinance

Lower personal loan interest rates translate into smaller repayment amounts by the borrowers. Comparing the interest rates offered by new lending institutions is critical for borrowers looking for a personal loan refinance. When the terms and conditions related to the new lenders are read and accepted, borrowers can fill up the application, submit the required documents and clear the outstanding loan with the new loan amount’s arrival.

Also Read: Startup Business Loan: Detailed Guide for Small Businesses

Tips To Get A Personal Loan for Self-employed Persons

A personal loan is a multipurpose loan and can be used by self-employed persons, including doctors, chartered accountants, etc. It gives flexibility and ease of access for business growth. The personal loan amount can be up to Rs.10 lakhs depending on the lender and applicant’s profile. Lending institutions offer uniquely designed personal loans for self-employed individuals.

Here are the tips to get approved for a specifically designed personal loan for self-employed persons:

Check the Eligibility

Reputed lending institutions and NBFCs (Non-banking financial institutions) provide easy loans for self-employed individuals. One should check the eligibility conditions of a lender before making a loan application to avoid rejection. Lenders provide a free personal loan calculator on their official website. Borrowers are advised to use this calculator to make an informed decision.

Consider Interest Rates

Loan cost is the primary factor that borrowers need to consider before applying for a personal loan. It should be a competitive rate that can make loan repayment easy. Personal loan interest rates are affordable with reputed NBFCs.

Preparation for Documentation

Lenders need to authenticate their customers’ identity, address and income level. Therefore, they need some documents issued by the Indian government. Getting ready with the required documents helps to make an application faster.

Flexible Loan Tenure

Look for a lending institution or NBFC offering a personal loan for self-employed with a flexible loan tenure. It can be as long as 60 months.

For the convenience of application, borrowers can make an online application. If they are comfortable with offline processing, there is a facility for offline application also.

Also Read: 4 Important Things You Should Know About CIBIL Score to Avail Personal Loan

How To Get An Affordable Personal Loan

Low-interest rates are definitely one main criterion when finalising a personal loan. Personal loan calculators, like eligibility calculators and EMI calculators, assist borrowers to determine personal loan affordability. Here is how one can get an affordable personal loan:

personal loan eligibility check

Competitive Interest Rate

Key factors driving personal loan growth at an affordable rate include healthy competition among lending institutions. Before taking the plunge, borrowers should explore financial institutions and NBFCs (Non-banking Financial Companies) offering personal loans at competitive interest rates.

Maintain Good Credit Score

A loan-seeker’s credit score is directly linked to a loan interest rate. A higher credit score helps to obtain a personal loan at more favourable terms with a lending institution. Also, maintaining a good credit score is a factor within the borrowers’ control that is considered to offer personal loan interest rates. Repay the existing loans or debts on time, and keep the credit utilisation ratio low to maintain a favourable credit score.

Consider Pre-approved Loan Offer

Existing customers of a lending institution can take advantage of pre-approved personal loan offers. Lending institutions generally offer lower personal loan interest rates depending on their clients’ credit behaviour towards their previous debts. It can help to get an affordable personal loan.

Thus, these factors increase the chances of getting a personal loan at affordable interest rates with trusted and renowned lending institutions. Utilise personal loan calculators to check loan eligibility before making a loan application with the lender.

Also Read: Check Out the Various Forms of Long and Short Term Personal Loans

Personal Loans: The Most Popular Loans

Have you ever wondered why you receive so many cold calls from non-financial banking corporations (NFBCs) offering personal loans? It is because personal loans are one of the most popular loans in India.

Decisions like wanting to buy an expensive smartphone or buying a high-end laptop are making people take loans to fund their lifestyle.

How Popular are Personal Loans in India?

The popularity of personal loans is reflected in the relatively lower personal loan interest rates in India. People use them as a quick bridge when they are low on funds.

The modern lifestyle dominated by experiences like travel is one of the best personal loan requirements. People pay for lavish holidays through personal loans and repay later. 

How Much Can You Borrow Through Personal Loans?

The amount of loan you may be eligible for depends on your income and expenses. Most NFBCs offer loans from extremely small amounts to several lakhs. So, you have a wide range of loan amounts to choose from, depending on your specific requirements.

The higher the income, the more confidence the lender has in your repayment capacity. It results in your being eligible for higher amounts. 

Salary proof and expense proof in the form of a bank statement are the personal loan documents that you would have to submit for verification.

Conclusion

The lower personal loan interest rates in India make it an easily available option to close short-term fund deficits. 

The best personal loan requirements are where you get instant gratification from the funds generated. Of course, it has to be combined with quick and timely repayment, and then life is good!

Must Read: 5 Points to Keep in Mind When You Applying your First Personal Loan

How Can You Manage Your Personal Finance Better?

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To manage personal finance better, one needs to strategize saving and investing. A few simple things can help you improve your money crunches and diminish your financial issues. Here are few tips to strategize and manage your personal finance better. (Check your personal loan rates here)

How Can You Manage Your Personal Finance Better?

  • Invest wisely

If you cannot access the desired asset that can give you a higher value asset in the longer run, then go for a quick collateral loan. Collateral loans have comparatively even lower interest rates. You can use the sum to get the desired asset with better returns.  

  • Prepare For the Unprecedented

 A financial emergency can arise in any situation. You can opt for low-interest personal loan rates in such situations to manage your finances well. One thing to keep in mind is to 

  • Use A Credit Card Carefully

Swiping a credit card is more convenient, but not its interest rates which go up to 23%. Whether you are buying a mobile or a higher sum, then don’t go for the impulse. Compare it with personal loan rates and calculate your instalments. 

Various lenders offers personal loans as flexible repayment schedules and the lowest interest rates that keep you financially stress-free!

Must Read: 8 Tips Helps you to Manage your Personal Loan Payment

How To Get The Best Personal Loan Interest Rates?

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It is now possible for consumers to find best personal loan interest rates online and choose the best ones available. There are some straightforward steps that can be taken by borrowers who want to take advantage of the competition among lenders and avail a low-interest personal loan.

  1. Get quotes from a variety of lenders – The competition among lenders has grown exponentially in recent months, meaning that it’s easier than ever for consumers to find attractive offers. It only takes a few minutes for interested individuals to fill out a short online application form at one or more lending websites, and this process will provide them with all the necessary information needed for comparisons.

  2. Improve Your Eligibility: Borrowers should examine all their existing loans and credit cards in order to determine their creditworthiness. This information will be used when applying for a new loan, as lenders usually look at applicants’ current credit situation as an indicator of how likely they are to repay on time. If there is a risk, the interest rate will rise. If the credit profile looks healthy, the interest rate will fall.

  3. Check for festive offers: Some lenders offer discounts on their loans in the festive season, especially for borrowers who get personal loans online. Borrowers should not overlook these festive offers, but rather avail of them as they will lower the interest rate. Borrowers can also get discounts on interest rates and processing charges if they have an existing relationship with the lender.

Follow these steps to get a low interest personal loan.

Additional Read: How to Get a Good Interest Rate On A Personal Loan?