Personal Loan For Interest Rate

Interest Rate Personal Loan

Interest rates are inevitable when you are applying for a personal loan. Your personal loan interest rates will be decided based on your credit score, your loan amount, repayment tenure, and various other factors.
At Housing.com, you can get personal loans up to Rs. 10 lakhs for an attractive interest rate of 12%. You can use our Personal Loan EMI Calculator to learn how much amount you will be paying as part of your interest.
Below is a table depicting the minimum and maximum interest rates you can get from Housing.com.

What are some other fees and charges levied by lenders?

Apart from your interest rate, there are other charges that lenders will include while calculating the loan amount you need to pay. Below are the charges that might be applied when getting a personal loan.

Processing fees: Fees you need to pay for processing your application

Verification charges: Fees you need to pay for document and background verification

Government taxes: Fees you need to pay as a part of government tax, like GST

Prepayment fees: If you wish to prepay part of your loan

Late payment fees: Fees you should pay if you don’t pay your EMI on time

Foreclosure fees: Fees you must pay if you wish to close your loan before your tenure ends.

How to Get a Personal Loan with a Lower Interest Rate?

The lower your interest rate, the lower the amount you need to pay your lender. So, how do you lower your interest rate? Below are some tips you can follow.

Increase your credit score

The higher your credit score, the lower your interest rate. Having a high credit score shows that you are trustworthy and will pay your loan amount on time.
To apply for a personal loan at Housing.com, you need a minimum credit score of 700. Your interest rates will lower if your credit score is higher than that. So, ensure you have a high credit score before applying for a personal loan.

Look out for offers

Look out for limited-period special interest rate offers that might be provided during festive occasions. Applying for a personal loan during the offer period can lower your interest rate.

Avoid missing repayments

Your credit score will be affected if you miss a loan or credit card repayment. This will also reduce the trust the lender has in you. So ensure you pay your due amount on time without fail.

Negotiate with your lender

If you are an existing customer or have a good relationship with your lender, you can negotiate a lower interest rate with them. Ensure you send a formal written request while negotiating.

Factors that Affect Personal Loan Interest Rates

Here are some factors that can affect the interest rate your lender might allot for you.

Your income

Your income will play a vital role in deciding your interest rate. Your lender will check your income to decide whether you can be trusted to pay your loan amount on time. So, the higher your income, the lower your interest rate.

Employer details & nature of employment

You will be given a lower interest rate if you work in a reputed organization or MNC. Likewise, lenders will also consider whether you are a salaried or self-employed applicant.

Age

Your age will also be considered while deciding your interest rate. The higher your age, the higher your interest rate.

Your relationship with the lender

You are more likely to get a personal loan with a lower interest rate if you are an existing customer or have a good relationship with your lender. However, this will be decided by your lender, and not all of them provide lower interest rates for their existing customers.