Then there are numerous nuances linked to it. For example, what if the bank offers a loan at a lower rate of interest but charges a high processing fee. Additionally, what if the lender has a high hidden fee. So, you need to be careful of this and more.
Let us understand the key tips and tricks so that you can secure a good personal loan at convenient terms and conditions. Getting a personal loan may be easier than ever, but managing to bag the best deal is definitely not as easy as it sounds.
Here we list out the key tips and tricks
Before applying: First of all, you need to check your credit score. You can check your score without any impact on it. Remember that if the score is over 700, you can bag the best deals (with low interest rate). A score between 650 to 700 can land you an average deal(s). For a score below 650, you need to improve the score before applying.
If your score happens to be low, you can apply for secured credit cards (FD-based) for 3 months before applying for a loan.
To reduce rate of interest: It is recommended to compare interest rates of different banks and financial institutions by using apps such as BankBazaar and Paisabazaar. You can also apply for pre-approved loans by checking on the bank’s app. The bank apps show offers without hard inquiry.
Choose the right loan tenure: The short tenure (1 to 2 Years) is low interest whereas long tenure is between 3 to 5 Years. Try to keep the Interest rate and EMI as low as possible. Additionally, don’t apply to multiple lenders at once. It lowers your credit score. You can apply from the platforms where they don’t do hard inquiries if you are pre-approved. And you stay away from loan apps which charge hidden fees.
And make sure to refrain from applying through an agent as they tend to charge 2 to 3 per cent commission on it.
(Note: Raising a loan comes with its own risks. So, due caution is advised)
