- May 21, 2020
- Posted by: Ganeshcbani
- Category: Blog
How to get the best interest rates on personal loans?
Compared to the existing rates, Citibank, Baroda Bank provides the lowest interest rate of 10.5%. Based on the company you deal with, the loan sum sought and the payment flexibility, you will get the best personal loan. The higher the amount of the loan, the lower the interest rate.
If you’re looking for an immediate personal loan with 1-2 days, HDFC Bank, Tata Capital, RBL Bank, Citibank and ICICI Bank are the best personal credit firms. The interest rates of these banks range from 10.5% to 18%. Such providers of loans offer online lending. You will obtain immediate personal approval online from these banks and verify eligibility without paper documents needing to be submitted. You may be entitled to instant disbursement without a document if you are an current account holder or a current HDFC bank, Tata Finance, RBL Bank, Citibank, ICICI Bank loan customer. You may also upload some documents to the mobile app or physically give them to a bank loan officer who visits you before the loan disbursement.
Personal Loan Interest Rate
After a analysis of the income level, credit history and repayment options of a individual is performed, a personal loan is a common type of unsecured loan. Since this loans can be used for multi functional purposes and are versatile, they are typically borrowed to meet personal needs such as wedding, home renovation, higher education or holiday planning. The loans are usually provided by banks and other financial services firms (NBFCs).
Once borrowers apply for loans, they may use EMI personal loan calculator to check lowest personal interest rates in India and the same monthly installments that they are paying and then compare public and private sector banks’ personal loan interest rate.
For eg, SBI personal loan rates, HDFC personal loan rates, etc. After comparing the personal interest rates of banks the individual will determine which financial institution offers are best.
Impact On Personal Loan Interest Rate:
1.Income: When your salary is above a specific threshold, banks believe the chances of paying are greater than your regular income. Some banks have income categories, where different rates are issued.
As your monthly income increases, your personal loan will have a lower interest rate. Clients with sales from rs. 20,000 to rs. 50,000 and rs. 50,000 to rs. 75,000 shall be subject to these levels. On the other hand, if you have sales above Rs. 75,000, you’ll receive a lower interest rate.
2. Status of company: Banks describe companies in three or four groups, namely
Cat A or Diamond or Top 500
Cat of C
Anyone who works in these businesses will receive banks’ personal loans. The better your company category, the lower the interest rate you get. Banks identify these businesses as companies and their credibility
Banks give CAT A company customers a lower interest rate as they are less likely to default. So if your business (start-ups) is new and not listed in banks, you are typically going to receive a higher rate or no credit from the banks.
3. Credit and Payment History: before giving personal loans , banks shall follow CIBIL scores / ratings. If your payments for credit cards and credits are not matched, you may be rejected by the bank or get a higher interest rate. CIBIL SCORE is in the ranges of 0-900 for personal loans and most banks favor customers above 750 for personal loans. Also, if your Cibil score is over 800, you will the your personal interest loan rate by 0.25%.
4. Relationship with your Bank: The bank where you have your Saving account / Wages is most likely to provide you with a special interest rate or personal borrowing fee. Banks provide better options for their personal loans and credit card customers compared to other banks. Check your own bank interest rate before you apply for a personal loan to other banks.
5. Negotiational skills for individuals: In light of the above, you can always negotiate and ask banks for special exemptions on interest rates, processing duties, etc.