Situations may arise when you need urgent funds and a personal loan comes in handy. A personal loan is a collateral-free loan and the borrower does not have to worry about arranging collateral to avail of a loan.
Like every other loan, a personal loan (PL) as per Tax consultants in Pakistan has an interest rate which is the prime deciding factor of a loan’s cost.
The personal loan interest rate is the interest charges the borrower has to pay to the lender along with the principal loan amount. Hence, a lower personal loan interest rate means a less expensive loan.
The good news here is that you can try and secure a lower interest rate on your loan with a little effort. Get the best personal loan interest rates and submit the complete personal loan documents to get instant access to funds. Here is how you can get a lower personal loan interest rate.
Ways to Secure Better Personal Loan Interest Rates:
The lower the interest rate on a personal loan, the lesser the amount the customer has to pay to the lending institution in addition to the principal amount borrowed. Ensure a few things when you apply for a personal loan and get the best possible interest rates on your loan.
Keep your credit score high:
Since personal loans are unsecured loans, the lender does not have the security of the borrower’s assets for debt recovery. Therefore, lenders are cautious before offering a personal loan to the customer. To ensure that the customer has a good past payment record and is a disciplined borrower, the lender checks his credit score and credit history. Lenders offer loans at a better interest rate to customers with a credit score of 750+ and a clean credit history. Ensure your credit score is high and there are no negative remarks in your credit history. For this, be regular with the monthly payments of your current financial commitments and try to limit your financial obligations.
Compare the interest rates charged by different lending institutions:
Various lending institutions offer personal loans in the country. It is advisable to compare the interest rates charged by multiple lenders to find one with the most reasonable interest rates and customer-friendly repayment policies. To compare the interest rates from different lenders, you can visit their official websites and check out the loan interest rates, other charges, and repayment terms.
Look for special offers from lenders:
Often lenders roll out special offers and discounted interest rates for customers from time to time. It may be during the festival season or other special occasions. If a customer apply for a personal loan under these special offers, he can get a better deal and lower interest rates on his loan.
Give a preference to pre-approved loans:
Lendinginstitutions extend pre-approved loan offers to some existing customers with sound past payment records. Pre-approved loans have a shorter processing time and carry lower interest rates because the lender has already conducted a background check on the customer. The lender has confidence in a disciplined existing customer and extends him a better loan offer than others. It significantly reduces the time and effort required to apply for a fresh loan without a pre-approved offer.
Maintain a good employment history:
A stable employment history with reputed companies can help you get higher personal loan eligibility and lower loan interest rates. Lenders have more confidence in people with stable employment and a regular source of income. Such loan seekers have a lower chance of defaulting on their loan repayment. Therefore lenders offer better loan repayment terms and lower interest rates on loans to them.
Furnish all income sources to the lender:
A higher income indicates a higher possibility of timely loan repayment. Therefore, according to branch office registration service furnish all your income sources to the lender when you submit your personal loan documents. It includes income from regular employment, income from freelancing, rental income, etc. Submitting proof of a higher income leads to lower interest rates.
Borrowers can take care of the above-mentioned points to secure a personal loan at better interest rates. It will also help in quickening the loan application process and make it a hassle-free process for the customer.