Personal Loan: There is new update for indian common people regarding personal loan. No one can say when they need money in life. The only way is to get a loan. But there are many who come back for fear of high interest. But worry no more. Because in today’s report, I will tell you how you can take a personal loan at low interest.
How to minimise interest?
First of all, you have to decide for which expenses you need a personal loan. Usually people take personal loans for expenses like home renovation, marriage, etc. If the expense is not very big, then postpone taking a loan. After this, see how much money you need. Suppose you need Rs 5 lakh. At the same time, you have kept Rs 1 lakh in savings. So take a personal loan of only Rs 4 lakh. Keep in mind that your expenses should not affect the emergency fund. Because the smaller the loan amount you take, the lower is your EMI including interest.
After this, find out your credit score. You can easily find out your credit score through UPI apps like Google Pay.
If the credit score is more than 720, then any bank will easily give you a loan. It is possible that the interest rate will also be minimal if you have a good credit score. Through the credit score, the bank checks the borrower’s ability to repay the loan.
Even if the credit score is less than 720, a loan can still be obtained. Many NBFCs or financial institutions registered with RBI provide loans to those with low credit scores. However, the interest rate will be higher.
Along with this, do not forget to compare the interest rates offered by different banks. However, it is better to take a loan from the bank in which you have your money deposited or salary received because you will be able to repay the loan easily.
However, you can also choose a bank that offers a lower interest rate. This will also reduce the EMI of the loan and there will be no problem in repaying the loan