Take a fresh look at your lifestyle.

Reliable Ways to Secure the Best Interest Rate on Personal Loans

Individuals often use their savings to cover the expenses on stormy days. However, when the expenses are huge, the savings of an individual can fall short. Hence, the best way to fund those stormy days can be a personal loan. 

This collateral-free emergency loan is usually taken to fund emergency expenses such as weddings, travels, hospital expenditures, and many more. One of the best personal loan features is that it can be availed of by anyone. Moreover, some of the major financial institutions such as Bajaj Finserv provide instant approval on personal loans. If you are an existing customer, you can easily avail of the pre-approved loan offers and guess what? It can be disbursed within seconds into your account.     

Let us keep all these advantages aside. Although, there is one fly in the ointment that appears while applying for a personal loan is its interest rate. The interest rates are kept high by the financial institutions, because there is no collateral to secure a personal loan. But you can safeguard this drawback by following these points-

Look for Pre-Approved Offers

As the name suggests, these offers are already approved based on your credit relationship with the lender. Major financial institutions of the country provide pre-approved offers. You should note that pre-approved offers are issued to existing clients only.

Under this offer, the borrower does not have to submit any documents. Lending institutions maintain it in their records. Although to get a pre-approved offer at a discounted interest rate, you should have a good credit relationship with the lender. You can strengthen this credit relationship by paying dues on time.

Maintain A Healthy Credit Score

Since you do not require any collateral to secure a personal loan, the lending institutions give credit score more importance. A credit score is a three-digit number that ranges between 300-900 and it tells about the financial health of an individual. The higher the better. If a credit score is more than 750, it is considered an excellent score. Whereas a score below 650 is a poor score.

  • How to maintain a healthy credit score? Here’s how: 

As they say, it is easy to maintain/change anything if you constantly monitor it. The same goes for CIBIL/credit score. You will be able to maintain your CIBIL score properly, once you start checking it regularly. 

Check for Seasonal Offers

The best time to avail of this personal loan is during the festive season. Almost all financial institutions come out with festive offers, such as lower interest rates on personal loans and zero processing fees. You can take advantage of this and use it for emergency situations. 

Compare and Negotiate

Research may take a lot of your time, but if that research will save you some extra money, then why not spare the extra time researching the best personal loan provider. With proper research, you can reduce the burden of high interest rates. This will help you negotiate, if you have maintained a sound relationship with the existing lender. 

Use Your Professional Credentials

You can be at an advantage if your total work experience is more than two years. Moreover, if your current work experience in the same company is more than one year, it will be the cherry on the cake. You can easily negotiate with lenders based on your professional credentials.

To sum up

With this information, you can get the best personal loan at a comparatively lower interest rate. To get quick online disbursement of the personal loan, you can visit Bajaj Fiserv’s website. You can check for a preapproved offer by putting in your contact information.