The lending rate for an unsecured personal loan is relatively higher compared to secured financial products in the market. A low interest personal loan is subject to whether the borrower qualifies for the eligibility criteria defined for the same. Also, such rates vary within different lenders as well.
Either way, here are some steps which can help you avail a personal loan at the lowest interest rates.
- Build a good credit score
Certain lenders offer funds to individuals with a low CIBIL score. However, they demand high interest rates on the same. To avail attractive or low interest personal loans, an applicant needs to build a good credit score. Generally, a CIBIL score over and above 750 is considered to be a creditworthy score to avail such unsecured loans at beneficial terms and features.
- Compare the offers before zeroing in a financial institution
Individuals should consider comparing the benefits, features, and personal loan interest rates offered by their preferred financial institution to avail the loan at rates. They should also compute their payable interest amount using an interest calculator to have an exact estimation of their monthly pay-offs. Prospective borrowers can be further advised to avail loans at not just the most affordable interest rates but with other beneficial loan terms as well.
- Clear existing debts
Settling existing debts is necessary for individuals who are willing to avail a personal loan at attractive terms. Payment of dues within the stipulated time shows you as a financially responsible borrower. Existing debts are one of the most important factors which affect personal loan approval.
List of documents required for salaried individuals
Important documents required while applying for a personal loan are listed below –
- Aadhaar card/Passport / Driving License / Voters ID / PAN Card are required as an identity proof.
- For residential proof, the individual has to present his/her Leave and License Agreement / Utility Bill / Passport
- Salary slips of the last three months that signifies your repayment capacity.
- 2 Passport Size photographs.
List of documents required from self-employed individuals
Other than the ID and Address proof required, a self-employed applicant may need to provide the following documentation to get a personal loan in India –
- Last 2 years as income proof, accurately attested by a professional auditor.
- Bank statement of last 6 months.
- Office address proof.
- Proof of residence or office ownership.
- Proof of continuity of business.
The above mentioned credentials are required to be produced by an individual to avail a personal loan. Furthermore, they should be prudent enough to compare between interest rates on offer and avail the most beneficial low interest personal loan. It is also wise to consider other repayment-friendly loan terms while availing such loans and not just the interest rates. Apply for a personal loan only after you have followed up on all these pointers.
Several reputed financial institutions like Bajaj Finserv offer personal loans at attractive interest rates. Apart from competitive rates, they also provide various other lucrative features like high loan quantum and flexible repayment tenors of up to 60 months.
They also provide pre-approved offers on personal loans that help in streamlining the application process to make it easier and time-saving for borrowers. These offers are available on several other financial products including home loans, business loans, loans against property, etc. You can check your pre-approved offers by providing only some necessary details.