- By Aditya Pratap Singh
- Tue, 13 Feb 2024 06:05 PM (IST)
- Source:JND
Low-Interest Personal Loan: Loan has become an essential tool for an individual's life. Nowadays, taking a personal loan for even a petty need has become an easy process. In such a situation, a customer needs to take out a loan at the right interest rates. But, the problem is very few people are aware of the facts and processes that can help them get a loan at low interest.
Some factors determine the eligibility and interest rate for a personal loan.
Job Profile and Salary
The interest rate on personal loans depends on the type of job you have and the amount you are getting every month. The higher your income is, the lower the interest rate you will be paying on a loan. If your income is low or irregular, then the lender will give you a loan at a higher interest rate.
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CIBIL or Credit Score
All lenders check the CIBIL score or credit score before approving a personal loan. If your credit score is above 750 then your chances of getting a personal loan at a low-interest rate can be high. The better the CIBIL score or credit score, the better negotiations the customers can do with the lender.
Pre-Approved Loan
Many times banks already give pre-approved loans to customers. For which they do not need to go to the bank. Banks already have the credit history of the customers based on which they offer loans to the customers.
Credit history
Customers' credit history plays a crucial role in getting a low-interest personal loan. Your credit history should be clean. The lender sees if the borrower is paying the EMI on time or not. If you do not pay EMI on time then you do not get a loan at low interest rates.
Debt to income ratio
If a customer has a bad debt-to-income ratio, then he will not get a loan at good rates. The debt-to-income ratio is obtained by dividing all the loan payments by your total salary. The lower the debt-to-income ratio, the better the rates at which you will get a personal loan.
