Finance

Easily Unlock Low Interest Rates on Your Personal Loan!

A personal loan can be a quick solution to many financial crises. While type of loan is typically readily available for everyone, the interest rates differ across lenders.

Admin January 30, 2025

52 4 minutes read

Easily Unlock Low Interest Rates on Your Personal Loan!

A personal loan can be a quick solution to many financial crises. While type of loan is typically readily available for everyone, the interest rates differ across lenders. When searching for the right one to apply for, look for the lowest interest rates.

The interest rate on your loan will partially rely on your creditworthiness and your repayment tenure and partially on the credit provider. While you cannot change the lender’s policies, you can work on factors that you can control. For instance, choosing a shorter tenure may mean higher EMIs but can lower your overall interest.

Always compare options to find the best deal for your needs and work on the following to get the most competitive rates.

Actionable Tips to Secure a Low Interest Rate on Personal Loans

These loans are generally unsecured, meaning you do not have to pledge any collateral to get access to funds. The range of interest rates you can get is typically between 9.9% and 44%. To secure the lowest interest rate, focus on factors that demonstrate your ability to repay the loan and establish credibility. Some of them include:

Consider Your Income

The first and most important point to think about is your monthly income. This can dictate the loan amount you can get. Typically, lenders look for borrowers with a stable income pattern to sanction a loan with a lower interest rate.

Maintain a Good Credit Score

This score indicates your creditworthiness. To have and preserve a good credit score and credit history, you will have to work on the following practices:

Pay your bills on time
Limit credit inquiries like applying for loans or credit cards frequently
Keep your credit utilisation low, ideally below 30%
Diversify your credit by mixing credit options like loans and credit cards
Keep your first credit card active to establish a smooth credit history
Regularly check your credit report for errors and dispute any inaccuracies
Avoid closing old accounts, as they contribute to the length of your credit history
Set up automatic payments for bills to avoid missing due dates
Keep balances low on credit cards to show responsible credit use
If possible, consider requesting a credit limit increase to improve your credit utilisation ratio

With a good score, getting a low interest becomes as simple as possible since it lowers the lender’s risk and positions you as a reliable borrower.

Compare Lenders

One lender may offer the lowest rate on its exclusive personal loan app while another may base the offer on your income and credit score. Yet another may give you the be+st offer if you’ve had a previous experience and repaid your loan on time. Your loan’s interest will vary based on the lender you select and there are many options for personal loans in the market today.

Here are a few factors you can consider when comparing lenders or personal loan apps:

User Ratings and Testimonials
Kind of Application Process
Choice of Repayment Options
Time Taken for Loan Disbursement
Loan Eligibility and Limits
Interest Rates and Charges
Options and Quality of Customer Support
Data Security and Privacy

Choose a Shorter Repayment Tenure

Lenders provide a range of repayment tenures, with interest rates varying based on your selected tenure. Select a tenure you are comfortable with, then check the associated interest rate. This helps you select the right tenure while keeping the interest rate comparatively lower.

Sign up with a Co-applicant

If you find a co-signer, you may be able to secure a loan at a lower interest rate. The co-applicant can be your spouse, your sibling, or other direct family members. Lenders like co-applied loans since they can consider both incomes when working out repayment options.

Look for Pre-qualified Loans

Another option you can consider is applying for a loan that is already pre-approved for you. Your bank or credit card company may send you such offers by SMS, WhatsApp or email. These may have lower rates of interest as the issuer has already checked your financial readiness and ability to repay. Another advantage is that the issuer will process your request fairly quickly.

Check Seasonal Offers

Many lenders offer a great deal on loans (with the lowest rates) during certain times of the year. This could be around Diwali or Christmas or at the start of summer holidays in the school year. Keep an eye out for these deals to secure a better interest rate.

Which Lenders to Consider?

Here are a few lenders known for their low interest rates:

Lender	Interest rate
Dhani	Starting from 13.99% per annum
IndiaLends	Starting from 10.75% per annum
Moneyview	Starting from 14% per annum
Navi	Starting from 9.9% per annum
Fibe	Starting from 9% per annum
IDFC FIRST Bank	Starting from 10.99 per annum

Disclaimer: These rates are subject to change over time. Visit the official website or app to check the current rate before applying.

Before applying for a personal loan, knowing your credit score is vital. You can do it for free using the OneScore App, which provides lifetime-free credit reports and scores from Experian and CIBIL.

The app also offers personalised tips and insights to help you boost your score quickly. Plus, it allows you to easily spot and report any discrepancies in your credit report. You can easily plan your way to get a better credit score by using the OneScore app and enjoy another advantage: The app sends you personal loan offers based on your credit score, which is a great way to get an affordable loan based on your creditworthiness. Download it now and develop a strong relationship with your credit score!

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