Personal contingencies are a part of present-day life, and no matter how hard you try to avoid them, they eventually end up knocking on your door. These emergencies may be financial, emotional or physical. It is difficult to prepare for any emotional or physical distress, but you certainly can prepare to handle any financial exigency.
A financial emergency could be any situation that requires you to make the significant monetary expenditure. Due to uncertain economic scenario all over the country, it is tough to rule out the possibility of any financial exigency.
So, if you cannot get rid of it, at least you can prepare yourself for such an eventuality. You would feel that your personal savings, gold, fixed deposits, bonds are for such an eventuality only. But what if we tell you that there is one other option that can help you meet the financial emergency without selling out your investments and savings. It is indeed possible with this highly popular financial product known as “Personal Loan.”
Now you must be thinking what is a Personal Loan and Where Can I get a Personal Loan From? Can I apply for a Personal Loan online? How can I get the low-interest rate? Read further to get an answer to all such questions of yours.
All about Personal Loans
Personal Loans are unsecured loans offered by financial institutions in India. These loans can be used for any purpose that you have, and you need not provide any information to the lender regarding the usage of the money.
You just need to pay your EMIs (Equated Monthly Instalments) on time. The tenure of Personal Loans can go up to 60 months, and rate of interest typically varies from 10.99% to 24% (as per prevailing market rates). You can apply for a Personal Loan online as well as offline through MyMoneyMantra. Personal Loans offer you a cheaper mode of finance to meet your requirements as compared to various other high-interest options such as Credit Cards.
How to get Personal Loans with low-interest rates?
The rate of interest for Personal Loan varies across lenders, so you need to do thorough research to get the lowest interest rates against your loan. Here are 5 smart tricks that can help you get low-interest Personal Loans:
- Loan against Fixed Deposit
When you secure your loan with an asset, the risk of the lender reduces significantly, and they are able to offer you Personal Loans at very low-interest rates. So, if you have any fixed deposits, you can take a loan against fixed deposits at very low-interest rates. The fixed deposit would remain hypothecated with the bank till you repay the loan. Banks offer these loans up to 90% of the value of the fixed deposits at low interest.
- Check your credit score
You get the lowest interest rates against Personal Loans only if your credit score is more than 700. So you should keep a close eye on your credit score, and if it goes below that level, then you must act quickly and try to repair it. You can do so by regularising your loans, reducing your Credit Card utilisation ratio and reducing the number of loans you have taken. It is imperative to have a good credit score as all lenders prefer lending to individuals with high credit score.
- Get a co-applicant
If your credit score is low, then you can get a co-applicant on loan with you to get the lowest interest rates. The co-applicant should be a family member with a good credit history and a high credit score. This reduces the risk factor for the lender, and they would be able to offer you lower interest rates against your Personal Loan.
- Research around
Interest rates vary from lender to lender. Also, some lenders have more favourable terms and lower additional charges which bring down the cost of the whole loan. So, before you decide on a particular lender, you must conduct thorough research and enquiries to find out the lender who is offering the lowest interest rates.
- Floating Rate Loans
There are two types of interest rates available in the market – floating rate and fixed rate. Fixed rate remains same throughout the tenure of the loan, whereas floating rate varies with the prime lending rates. So, if you take a floating rate Personal Loan any reduction in the prime lending rates would help you save a lot of money on the interest payments.
Personal Loans offer a convenient option to help you meet your liabilities in a timely manner. You just need to research thoroughly before deciding on a particular loan to make sure that you are getting the lowest interest, in the market, on personal loans.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.