Some Important Factors which Influence Interest Rate on Personal Loan

The personal loan helps in getting the much-required credit during a financial crisis. It provides the funds to meet your personal needs. Some may need extra funds for wedding purpose or for education of child or to finance any other expenses etc. In other words, it is a multi-purpose loan that allows you to use the amount on things which matter to you. Compared to other loans, personal loans have shorter term and more flexible monthly installment schemes.

Different lenders have their specific set of requirements for potential loan borrowers. Many personal loan applications get rejected as loan applicants are not able to fulfill the specific requirement criteria.

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 loan

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 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 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.
• Calculate your possible EMI outflow every month (including the interest rate) with the

personal loan EMI calculator at Afinoz.com.

can help you get the best personal loan, with equitable comparison insights and the best in class support.

Do You Have the Qualifications?

If you are still uncertain of whether you meet the eligibility criteria to apply for a personal loan, call us now @+918795021552 to speak with an expert and to get more info about your personal loan application. We are always there to help you understand whether you meet all of our eligibility criteria. Moreover, you can conveniently assess your personal loan eligibility or EMI using utility tools like personal loan eligibility calculator afinoz The calculator will help you to determine your factual loan amount, EMI outflow every month including the interest rate you need to pay. Using the calculator at afinoz.com is free, easy and simple.

Hello Guys, this is sourav kumar, i am blogger and love to share article. i am working with loan dealing company, Who offer the best loan services for you.