Wondering how to finance your foreign degree, a dream wedding, big purchases like a branded laptop, or an emergency? Apply for an instant personal loan and finance all your needs. Then pay it back in small EMIs within the repayment tenure.
Before you ask, here are the 5 ways to get the best personal loan this year.
5 Tips to Get the Best Personal Loan in 2021
#1 – Choose the Best Lending Bank
The first way to get the best personal loan is to compare the benefits offered by different lending banks and choose the best bank.
The best bank for personal loans must offer:
- Online, paperless processing of loans facilitated by digital application and documentation
- Instant disbursal of personal loan after approval
- Competitive interest rates (plus payable interest keeps reducing as the outstanding principal amount of the loan goes down)
- Flexible repayment tenure of up to 60 months so that you can pay the EMIs conveniently
- Balance transfer of existing credit cards and personal loans at low rates (that can reduce your financial liabilities and your debt-to-income ratio to get new loans easily)
- Loans for both salaried and self-employed individuals
#2 – Improve Your Credit Score
No wonder a good credit history or score (above 700) will prove your creditworthiness to the lender. This increases the chances of personal loan approval at the best interest rates!
To boost your credit score:
- Make credit card bill payments in full on time always
- Maintain a proper credit utilisation ratio
- Repay loans in time
- Have any errors in the credit report rectified by reporting them to the bureau
#3 – Build a Good Loan Repayment History
Besides checking your CIBIL score, the lender goes through your loan repayment history. It’s best not to be a loan defaulter to get better chances at loan approval. Instead, make regular loan repayments in a disciplined way to get the best personal loans in the future.
#4 – Don’t Apply to Multiple Lenders
It’s best to avoid applying to multiple lenders so that:
- You don’t seem desperate to get a loan nor give the impression that your previous loan applications were rejected.
- You prevent a hard inquiry into your credit history every time a lender receives your loan request. Thus, you can ensure that both your credit score and chances of getting the best loan remain unaffected.
#5 – Use Your Professional Credentials
Consider using the following professional credentials to satisfy the lender:
If you have a high income (and prove it with valid documents), the lender will deduce that you have a good loan repayment capacity. So, you may be assigned the best interest rate on a personal loan.
If you work at a reputed organisation, it implies that your career is stable enough to manage a loan. So, you can show your organisation’s details to the lender and be eligible for better loans.
Whenever needed, use the personal loan EMI calculator to check the monthly payments to make as per your chosen loan amount, repayment tenure, and interest rate. This can help you make accurate EMI payments.