Want to save big on EMIs? Discover practical tips to qualify for low interest personal loans and make smarter borrowing decisions today.
Let’s be honest no one wants to pay more than they need to in any situation. But this statement is especially true when it comes to loans as well. And why wouldn’t it be? Why should anyone pay more interest than they have to? So, the solution they turn towards: low interest personal loans.
Now this might sound great but do note that these are not just handed out. You have to meet a few key requirements to qualify for these.
So naturally, the next question that needs to be answered is: just how to get qualified for these? Well, here are 5 tips that will surely help you out.
#1 Maintain A Good Credit Score
There is a reason why this tip is at numero uno because this is the whole ballgame. If you have a good credit score, then the credit world is an oyster for you. You will easily get approval for the loan. And there are other benefits to this as well, such as getting lower interest rates than others, more favourable payment terms and more.
#2 Choose the Right Lender
We could not stress this enough: choosing the right partner for your personal loan can easily make or break your whole experience.
Not all lenders are created equal. Some offer attractive rates (but only to salaried professionals) while others have better deals for self-employed. Instead of walking into the nearest bank & accepting their terms, do a little bit of research and find the best option for you.
#3 Show Stable Income & Employment
Lenders love stability. If you are someone who has been in the same job for a while and has a steady monthly income, then your chances of getting that loan approved skyrocket immediately! Why? Because it reassures the lenders that you will be able to repay your EMIs without issues.
Now you might be asked to provide supporting documents like salary slips, bank statements or ITRs make them readily available.
#4 Keep Your Debt-to-Income Ratio Low
Here is a simple rule: the less debt you already have, the better your chances of qualifying for a low EMI loan. If your current EMIs are eating up most of your salary, lenders may think twice before loaning out more to you something that is pretty obvious as you are a risk.
So, what is the line here? Well, your monthly obligations should not exceed 40-50% of your income.
#5 Consider A Shorter Tenure (& Collateral)
Personal loans are unsecured (typically) but you can change that as well. If you offer some form of security or even a guarantor you can lower your interest rates?
Also, think about shorter repayment schedule; it will also be beneficial.
Final Thoughts
There you have it, folks our take on just what you can do to easily qualify for low interest personal loans in India. And if you need a partner to help you through it, reach out to Loan Paradise immediately!
