Some Important Factors which Influence Interest Rate on Personal Loan

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Some Important Factors which
Influence
Interest
Rate
on
Personal
Loan
A personal loan is meant to address the
short-term financial needs of an individual.
Personal loans have been designed keeping
in mind the needs of the salaried
/self-employed class or people who have a
continuous source of income.
We often receive questions from loan
applicants regarding which bank/lender
provides the cheapest personal loan in India.
Banks publish the personal loan interest
rate related to different personal loan
products regularly but there are other things to
be considered in addition to this published rate
of interest. This is the reason why two
applicants in the same bank may be offered
different personal loan interest rate.
Here we will discuss the factors that determine
your ability to get the cheapest and the best
personal loans-
Your credit profile
Banks are really interested to know the credit
profile of the borrowers. From this, the bank
evaluates his creditworthiness. In fact, you can
avail
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a cheaper personal loan if you want a higher loan
amount and you have a higher income and credit
score at the same time.
Tenure of the loan
Tenure plays a very important part in securing
the best personal loans at a cheaper rate.
Longer the repayment period, higher may be
the interest rate and vice-versa.
Your bargaining power
It's as simple as buying any other product on the
market. You need to talk to prospective lenders
and line up alternatives. Bargain with the
bank in a credible and realistic manner as the
threat of losing a credible customer to
competitors may induce the banks to lower the
personal loan interest rate for you.
To make yourself more credible, make your income
easily verifiable to the bank. We recommend the
below-mentioned points
Provide to the bank as many documents as possible
related to your income proof. IT returns,
form 16, salary slip and bank statements are
the documents that would interest the bankers.
After the bank verifies your documents, it is
more likely to offer you a cheaper personal loan
interest rate, than what you were offered before.
Hence, wait till the bank comes back to you after
screening your income documents. Peruse the
draft loan agreement carefully to check for
any hidden clauses/charges. If required, check
for expert advice from someone you can trust
before making the all-important decision.
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?
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Calculate your
possible EMI outflow every month (including the
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interest
rate)
with the personal
loan
EMI
calculator at
Afinoz.com.
Afinoz.com can help
you get the
personal loans, with equitable
comparison insights and the best in class
support. For any query, feel free to contact us
or visit-https//www.afinoz.com.
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