All you need to know about personal loan interest rates in India

Posted by anushka on March 6th, 2019

Interest rates are at the center of any discussion about personal loans. Not without reason, they are an important factor when choosing the right finance solution for your needs. Keeping this in mind, the following article will tell you all you need to know about personal loan interest rates – hopefully, it will give you the information you need to make sound borrowing decisions.

1. How are personal loan rates decided?

Your personal loan interest rates are decided keeping in mind your financial profile. This is usually made up of your income, expenses, financial background, credit score, assets, etc. Therefore, if you have a good income, your rates will most likely be lower than those with a less income. Your rate will also depend on the loan amount you are borrowing; higher loan amounts can invite higher rates.

2. What is the best place to compare rates?

Comparing rates is one of the most important things to do before opting for a personal loan. The best way to do this is to visit one of the many personal loan aggregator sites. They will list all the top lenders and their respective personal loan interest rates. Along with this, they will also list the tenures and loan amounts they provide. This should give you a good idea of your options.

3. How to reduce personal loan interest rates?

You can try negotiating. If your credit scores are high and you have a strong financial background, you may be able to get a lower rate than offered. You could also save up before applying & take a smaller loan amount – this should get you lower rates. You can also reduce the total interest payable by making prepayments; this will reduce your outstanding amount, shrink your interest payable & get you out of debt quicker too!

4. Remember to compare rates last.

Some people put personal loan interest rates at the center of the decisions. They opt for the lender offering the lowest rate not realizing that they could be settling for inferior borrowing options. Ideally, you should look for lender providing higher loan amounts, longer tenures & better reviews. Once you shortlist a few such lenders, you can then compare the interest rate they offer. You can finalize on the one with lowest rates now because it’s among the better options available.

5. Also look at charges.

With their focus on Apnapaisa personal loan interest rates, some borrowers forget to look at the charges of a personal loan. These can be quite substantial and it’s important you compare them amongst all the lenders before borrowing the amount.

We hope these pointers have given you a better idea of personal loan interest rates and they help you make sound borrowing decisions. For more information, you can simply go online, speak to one of the many lenders or consult with one of the many personal loan aggregator sites. Good luck, all the best and remember to read the offered documents before signing.