Personal Loans With Low Interest Rates - Indian Sahukar

Personal Loans With Low Interest Rates

Today, because of personal loans, common people can easily get money from the bank for cars, houses, education, etc. This financial support helps people expand their horizons and take risks for their growth. However, for these personal loans, you have to repay not only the amount borrowed but also some interest over a specified period.

The objective of this article is to understand personal loan interest rates, the factors of these rates, and how to obtain and calculate low personal loan interest rates.

What are the Interest rates on personal loans?

 

The interest rate on personal loan is the every year percentage which borrowers have to repay on the original capital amount in the period of loan. It could be fixed means remain constant for a period of time or fluctuate means changing as per market. Total amount of loan (including interest) is decided by the amount of interest and other factors like customers credit score, earned income, amount of loan and the policy & terms made by the dealer/company.

Factors affecting personal loan interest

 

There are several factors that affect your personal loan interest in india. You have to take care of below mentioned factors for your loan interest.

CIBIL Score:  Maintain your CIBIL score, it shows your clear financial record that helps you in getting low interest rate loans.

Your Occupation: Your occupation also affects your personal loan interest. Lander offers different interest rates to the individuals according to their occupations or salary.

Relationship with Lender: Your relationship with Lander influences your personal loan interest. If you’re a trusted customer your lender charges low interest on your loan.

Debt-to-income ratio: The lower Debt-to-income is helpful for getting low interest for personal loans. 

Age: Your age also matters for  availing low interest rate for personal loans. If you have many years remaining for your work you’ll get the best personal loan with a lower interest rate than those nearing retirement.

How to get low personal loan interest rates?

 

Here below are some points for how you can get low personal loan interest.

Credit score: To keep a hold of your high credit score that ensures low interest rates, always pay your EMIs on time, your bills and your debt on time. 

Pay your bills on time: Don’t let your bank balance get ruined by missing debts or paying late. Your credit rating will suffer. Always check your credit score prior to making an application for a personal loan.

Special Offers: Lenders always have some special offers; that is lower interest rates on personal loans specifically aimed at festive seasons and other occasions just for several weeks or months.

Compare interest rates: While choosing a personal loan is essential to compare interest rates with all the NBFCs. This comparison enables you to get a competitive interest rate.

Negotiate with your Lander: In the case you have a favorable relationship with your bank, you will be able to influence the interest rate on your personal loan downwards.

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How to calculate personal loan interest rates?

Formula for calculating EMI : EMI = [PxRX(1+R)^N]/[(1+R)^N-1]

 

EMI is Equated Monthly Installment.

P is the principal amount of the loan.

R is the monthly rate.

N is the number of monthly installments.

 

Example: Mrs. Kavita is a 28 year old government teacher who wants to apply for an unsecured business loan to cover wedding expenses. She wishes to take a loan of Rs. 10 lakh, and wants to repay it over 36 months at an interest rate of 14% per annum.

 

She can either use the websites of a bank or an NBFC to check the EMIs or use EMI calculators online. To arrive at that, she needs to quote the value of the lending amount (Rs. 10 lakh), the rate of interest (14%) and the time span within which she’ll be repaying the token (36 months).

 

In other words, she has to make an EMI of Rs. 34,178 through bank standing instructions every month for a 10 year period. Hence, the sum of all payments made will be Rs 2,30,395; this will make the total amount that has to be repaid as Rs 12,30,395.

 

Wrapping Up!

 

Lower interest rates not only ease the financial burden but also enhance your ability to meet other financial goals. Carefully evaluate your options, understand the terms, and choose a loan that aligns with your needs and financial situation to achieve the best outcomes. Above we clear all your doubts still if you have any doubt regarding Interest rate visit India Sahukar website for more information.  

 

If you’re looking for trustable loan provider company, you can count on us. We have 10+ years in this field and more than 2235 satisfied clients. Apply now for a personal loan with a low interest rate in india.