5 Time-Tested Tips to Get the Best Loan Deals

A low-interest personal loan is an excellent option for addressing an urgent financial need. However, banks, credit card loans, and other such financial means are either time consuming, tedious, or charge extremely high-interest rates. If you too are trying to get the best loan deals on a personal loan, try these 5 effective tips:

1. Keep a Good Credit Score

A good credit score is one of the first requirements for getting a personal loan. You can get a good deal on your personal loan if your credit score is 750 or above. So make sure you clear your debts in time. You can also do the following to maintain a good credit score:

• Avoiding a direct loan and maintaining a healthy credit mix of both unsecured and secured loans
• Maintaining a credit utilization ratio within 30%
• Checking your credit report regularly
• Paying your credit card bill every month and clearing off your debts within the given deadline. Also, ensure that you have repaid the EMIs of any other loans you might have taken on time. This helps you keep a good EMI repayment history, which works in your favor when getting a new personal loan.

2. Do Your Research

Invest your time in research to increase your chances of getting the best loan deals on your personal loan. Consider someone other than your existing lender. Traditional banks have a tedious process for granting personal loans, and money lenders are most likely to charge sky-high interest rates. Hence, compare personal loan lenders in the market to ensure that you make a well-informed decision. It may seem time-consuming, but you can get the best interest rate and features if you have researched well beforehand. If you find a good deal with a new lender, you can even negotiate terms and interest rates with your existing lender to get a better deal. Also, consider personal loan apps, which are an excellent option for safe and hassle-free immediate cash loans in today’s financial setup.

3. Lookout for Seasonal Offers

Not all notifications from lenders are junk. So look out for lenders notifications about special and seasonal offers on personal loans. These offers provide limited-period discounts on the interest rate and other benefits that can make your personal loan more affordable. Mostly, you can avail of these discounts by applying online during festive periods.

4. Prefer Shorter Tenure

A shorter tenure comes with dual benefits. It assures your lender of your repayment capabilities and cuts down on your expenses, which make repayment easier on your wallet. Although, you do need to keep in mind that the shorter the tenure of loan repayment, the higher is the EMI amount. Hence, ensure that your EMI amount isn’t too high when compared to your monthly income. A high debt-to-income ratio can make your lender wary of your repayment capability.

5. Leverage Employer Credibility

If you work for a reputed or blue-chip or multinational company, you may be able to get the best loan deals on a personal loan. You can leverage your employer's credibility to your advantage and negotiate a lower rate of interest. Your employer’s credibility helps assure the lender that the employer is capable of providing a steady job and income, which means you are more likely to repay on time.

Remember, it is essential to look beyond the interest-rates and read all the terms and conditions of service carefully before choosing a lender. Factors such as processing fees, prepayment charges, loan tenure, loan amount, etc., are all critical for deciding whether or not you are getting a good deal on your personal loan.