How to get a lower interest rate on a personal loan

Generally before sanctioning a personal loan, lenders consider many factors such as the loan amount you have applied for, your repayment capacity and maybe even the company you are working for. Interest rates on personal loans are usually higher than those on others like home and auto loans. Therefore, when applying for a personal loan, try and get one at the lowest interest rate feasible, given other constraints. Here are six ways to get a better interest rate.

1. Maintain Healthy CIBIL Score
2. Maintain Good Repayment History
3. Compare Interest rates, Choose the Best One
4. Check Interest Rates on Calculation Basis.
5. Credibility of the Employer
6. Your Employment History

1. It is prudent to check what the personal loan offers. Basically, one should check the service terms offered by various lenders before zeroing in on any lender. Make sure you base your decision not only on the interest rate offered but also on loan tenure, processing fee, prepayment charges, loan amount etc.

2. The lender may not give you a good deal if you have already taken too many loans. Also, if your CIBIL score is below 700, then it can even lead to rejection of your personal loan application.