Personal loan interest rates are the interest rate on personal loans expressed as a percentage of the principal amount you borrow from the bank or other lenders. The rate of interest on personal loans varies from 10.50% to 24%p.a. However, it also depends on the amount you borrow and the repayment duration you choose. Is the high-interest rate a concern for you that makes you reluctant to borrow?
If yes, you need to understand that personal loans come under unsecured loans with higher interest rates than secured loans. The banks either have to borrow money for themselves either from other banks or from customer deposits.
The interest rate on an unsecured loan would reflect how many expenses a bank would incur to avail of the funds, especially when there is no repayment guarantee. Hence, the bank or financial company considers factors like the borrower’s creditworthiness, loan length, and borrowing cost.
Ways to overcome the personal loan interest rates
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Conduct research and compare the interest rates charges on different banks:
It will help if you research the best personal loan in Bangalore that includes the lowest personal loan interest rates. You would come across many banks that offer specific interest rates. If you have decided to go for a personal loan, then ensure that you read all the loan terms and conditions and details like a prepayment penalty, loan processing fee, etc.
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Opt for a higher repayment duration & a flexible tenure:
The higher the repayment tenure, the lower the personal loan interest rates. When a borrower decides to go in for a personal loan, they consider the factors like low interest rates, low processing fees, and additional charges like paperwork costs, verification fees, and other levies associated with the loan that does not come under the interest rates. According to them, the one who claims to offer the best personal loan in Bangalore would provide the borrower with a flexible repayment duration and would not include additional charges on the principal amount.
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Check the eligibility criteria:
Looking for the best personal loan in Bangalore that offers lower personal loan interest rates will help you decide if you consider checking your eligibility criteria. It will be best if you go to the lender whose eligibility criteria you can fulfill without difficulty. However, the interest rates may vary. In such cases, you would have to check for different schemes closer to your requirement.
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Try to avail loans from your existing bank:
Applying for the best personal loan in Bangalore at the existing bank would be a wiser decision as you would have the advantage of good standing with your bank. It would also be easy for you to negotiate personal loan interest rates with the bank.
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Negotiate with the bank for a lower interest rate:
If you have a sound credit score and a good relationship with the bank, it will work best if you negotiate with the bank for a concessional interest rate. There would be a higher possibility that the bank would consider your request as it would increase their brand loyalty.
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Check for the special offers:
Whenever there is a festival or any other special occasion, you must check for special offers on the interest rates that banks would offer on personal loans. When the festive season begins, that would be the best time to apply for a loan at a low or reasonable interest rate.
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Good CIBIL score:
It is essential to repay your loan or monthly EMI on or before the due date. If people don’t make the repayments on time, it will affect their credit score. The bank and other lenders lend money to the borrowers easily if the CIBIL score is 750 or above.
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Avoid taking too many loans:
The advantage of taking a personal loan is that it enables you to manage your depleted income. If you have too many debts, it will affect your well-being.
Conclusion:
The borrower would have to think twice before taking the plunge for taking a personal loan. If they decide to go for a loan, it will help them choose the best personal loan in Bangalore and try to lower the personal loan interest rates. If required, they would also look for sources to increase their income to tackle the high-interest rates.
