Personal Loans are prevalent nowadays as they provide financial assistance to those who require instant funds for various purposes. Not just traditional lending institutions, Personal Loans are now being offered by reputed Non-Banking Financial Companies (NBFCs) like Clix Capital.  

The advantage of an NBFC Personal Loan is that they have easy repayment terms and provide attractive interest rates. However, getting Personal Loans online approval can be a task. Also, poor credit scores can lead to high-interest rates. Finding the best Personal Loan interest rate may not be easy if you are not diligent. Even more challenging is that the rates you will be provided with will vary significantly from one NBFC to other. Nevertheless, there are still ways to get lower Personal Loan rates in India. So, let’s discover how to get NBFC Personal Loans at the most competitive rates.

How to Obtain the Lower Personal Loan Interest Rates in India? 

Here are some tips to obtain lower Personal Loan rates in India

  1. Maintain a good credit score 

Credit ratings are crucial as they determine whether you qualify for better loan arrangements.

An individual with a high credit score may be eligible for NBFC Personal Loans at a lower interest rate than someone with a poor credit history.

Your credit history shows how often you have applied for a loan, what kind of loans you have taken, how well you have repaid the loan, etc. 

Generally, a score of more than 700 is considered by the NBFCs. However, Clix Capital can offer a Personal Loan on a minimum Experian credit score of 630. 

Failing to maintain a good credit score could negatively affect your future applications for loans and mortgages.

To raise your credit score, you must make timely and complete payments. Observe your spending and log it into a spreadsheet.

  1. Compare lenders to get the best deal 

Even though there are dozens of lenders out there offering loans, not many offer competitive deals. Comparing different lenders’ offers and selecting the best lender that suits your requirements can help you save a lot of money.

The lender’s terms and conditions, fees, and requirements vary depending on the type of loan a person applies for. When comparing lenders, check their customer service and reputation. 

You should choose an NBFC that gives you personalized attention and assistance throughout the Personal Loans online approval process. You can rest assured knowing you will not forget to make payments on time, as their customer care department can send reminders.

Ensure that the lender offers competitive rates and flexible repayment plans. 

  1. Choose the suitable loan tenure and loan amount 

Choosing the right loan amount and tenure is critical in securing India’s lower Personal Loan rates.  

The rate rises as the term get extended. On the other hand, the shorter the tenure, the lower the cost. Moreover, a larger loan amount results in higher interest rates, posing a risk to the lender. 

You must find a balance between affordability and the total amount required. Make sure to choose an affordable loan based on your income level and future expectations. 

While taking a larger loan amount is tempting, it is never a good idea to borrow more than you can handle. Instead, focus on finding a suitable loan that fits your needs and repayment capabilities.

You can apply on the website of new-age lenders like Clix Capital, who offer online approval on personal loan interest rates at the lowest rates, ranging from 14.99% to 24.99%, and with flexible repayment terms ranging from 12 to 48 months.

Conclusion 

Do not consider only the interest rate while evaluating different Personal Loan options. Before finalizing an NBFC, you must consider other loan aspects, including the processing cost, loan amount, payback period, and prepayment fees.

Also, calculate the EMIs using the online personal loan calculator. Doing so will make you more likely to make on-time EMI payments throughout the loan tenure.

By Caroline baum

Hii I am Lanie Jones I am a passionate blogger. I have done MBA from Banglore.

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