How to Get a Personal Loan with Low Interest Rate in India

NEW DELHI - March 13, 2025 - PRLog -- A personal loan can be a great financial tool when you need funds for emergencies, home renovations, medical expenses, or even debt consolidation. However, the interest rate plays a crucial role in determining the overall cost of the loan. If you're looking for ways to secure a personal loan at a low interest rate in India, here are some key factors to consider.

1. Maintain a High Credit Score

Your credit score is one of the biggest factors influencing the interest rate on your personal loan. Banks and NBFCs prefer lending to individuals with a CIBIL score of 750 or above, as they are considered low-risk borrowers. A high score increases your chances of getting a loan with a competitive interest rate. To maintain a good score:

• Pay your credit card bills and EMIs on time
• Avoid excessive credit inquiries
• Maintain a good credit utilization ratio

2. Compare Loan Offers from Multiple Lenders

Different banks and financial institutions offer personal loans at varying interest rates. Instead of settling for the first offer, compare interest rates from multiple lenders. Use online loan comparison platforms like LoansJagat to check the best available deals in real-time.

3. Opt for a Secured Personal Loan

If you have assets such as fixed deposits, insurance policies, or gold, you can opt for a secured personal loan instead of an unsecured one. Secured loans come with lower interest rates since lenders have collateral as security.

4. Apply with a Co-Applicant

Adding a co-applicant with a stable income and good credit score can help reduce the risk for lenders. This can often result in a lower interest rate on your personal loan.

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5. Choose a Shorter Loan Tenure

A longer repayment tenure might reduce your EMI but often comes with a higher interest rate. Choosing a shorter loan tenure reduces the total interest paid over time and helps you save money.

6. Maintain a Strong Relationship with Your Bank

If you have an existing relationship with a bank, such as a salary account or a fixed deposit, they might offer you a personal loan at a preferential interest rate. Always check with your bank before applying elsewhere.

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Final Thoughts

Getting a low-interest personal loan in India requires careful planning. By maintaining a high credit score, comparing lenders, and opting for secured loans when possible, you can significantly lower your interest burden. Always read the loan terms carefully to avoid hidden charges and choose a lender that best fits your financial needs.