While we all spend our lives equipping ourselves through training in school, college and universities in order to carry out productive tasks that we can partake in exchange for resources. While some might seek out freelance or entrepreneurship-related careers that, while having high risks, also offer potentially higher rewards and job satisfaction, others might choose to opt for a job that provides them with a lower top line, but in exchange offers lower risk and sustainable income, providing job security. Regardless of both these criteria, we often sometimes find ourselves short on funds in times that we need them. Here is where the concept of quick interest loans plays an essential role.
With quick interest loans, you can dowse out any immediate financial concerns, and repay the amount at a time and frequency that is convenient for you. Needless to say, if employed correctly, quick personal loans can be a useful and productive tool to smoothen out your finances. In this article, let’s take a look at the interest rate for personal loans, what affects your quick personal loans, and how to get the best interest rate for personal loans.
In India, there are certain criteria for personal loans set by the RBI that are as follows.
- Personal loans can be taken out up to the amount of 25 lakhs.
- The interest rate for personal loan here stands at 10 % per annum, onwards.
- The loan tenure is between one to 5 years.
While these are some essential criteria, there are some factors that could affect your interest rate for a personal loan. Let’s take a look.
Factors that Affect Personal Loan Interest Rate.
1. Your repayment history.
When a bank gives you one of its quick personal loans, it is taking on the risk around you repaying the loan. Therefore, the risk is reduced if you have a good repayment history, resulting in the possibility of you getting a lower interest rate.
2. Income records.
If you have a good income record, banks are assured of your repayment capabilities, and thus are likely to offer a lower interest rate for personal loan. If you have an unstable employment history, this might tell the bank that you might not be able to meet your payments and will cause them to offer you a higher interest rate to hedge their risk.
3. Bank – Customer relationship.
If you have a good relationship with your bank, presented through a good credit score, they are likely to offer you lower interest rates.
In order to get a good interest rate for personal loan, you should try to maintain a credit score of or above 750, alongside a good history of timely repayments. While the interest rate of 10% onwards, there are a number of factors that could increase it. Therefore, ensuring you meet the correct criteria as mentioned above will undoubtedly help reduce your interest rate for personal loan. It is always best, however, to compare various interest rate offerings. The Finserv MARKETS website has a slew of personal loan offerings that you can compare and choose the best one for you. Visit the Finserv MARKETS website to get one of the quick personal loans today.
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