When in a pinch and in need of short-term financial help, a personal loan is one of the best options available. The choice of availing of a Fullerton India instant personal loan has become more accessible and easier to apply and repay with its digital-first approach. You can apply and get approval and get the personal loan sanctioned without any need to step out of your home.
Once applied, you can know your loan eligibility in minutes and the approval within the same day if the documents are in order (else, it could take longer). You can avail of higher value loans, although that is directly dependent on your eligibility.
This is a great option for borrowing money quickly, but the interest rates could be too high if your repayment capacity is lower. But there are certain factors that you can keep in check to lower the personal loan interest rates. This could greatly increase the cost of borrowing and thus enjoy a more comfortable loan experience.
Let us take a look at the interest rate options available when applying for a personal loan. The interest rate for quick loans usually starts from 10.99%. That could vary depending on factors as discussed below.
Top Factors That Could Lower Personal Loan Interest Rates
- Your Monthly Salary: Your monthly income is a vital factor lenders consider when applying for a personal loan. Salaried applicants who have a stable income of a high amount and haven’t suffered any setbacks such as loss of pay in the past 6 months can expect a lower interest rate.
- High Credit Score: The credit score indicates your creditworthiness to the lenders. The higher the credit score, the easier it will be for you to get a loan sanctioned at lower personal interest rates. The loan repayment history, depicted by your credit score, is the basis for the lenders to decide the Fullerton India instant personal loan amount, interest, and other aspects of disbursement. So it is important to maintain a high credit score to achieve the lowest possible interest rate.
- Keep an Eye Out for Special Offers: Always keep an eye out for special offers offered by NBFCs, especially during festive occasions. NBFCs often offer attractive offers and schemes which provide personal loans at lower interest rates and discounts on processing charges.
- Method of Interest Calculation: Sometimes, lenders may appear to offer extremely low-interest rates – such as 3%-4% on personal loans. However, one must understand the method of calculation. If these interest rates are being calculated on a per month basis, you would effectively be paying nearly 36%-38% per annum, thereby increasing your total interest payable. Thus, it is advisable to check the method of calculation on personal loans used by a lender before applying. For example, Fullerton India has an easy personal loan EMI calculator available on the website with which you can instantly populate an amortization schedule. This makes it easier for you to understand the interest calculation as well as the repayment plan.
- Compare the Rates Based on Tenures: Tenures affect personal loan interest rates. Lenders usually offer lower interest rates on longer tenures and higher interest rates on shorter tenures. On the other hand, a longer tenure means that you will be in debt for a longer period. If you are confident of repaying the loan in the short term, then getting a short term Fullerton India instant personal loan would be the best option. The repayment tenure option ranges from one to five years.
Make a list of loan structures that suits you best and make a wise decision based on what suits your financial needs. It is also important to note that if you wish to completely pay off the loan before the end of the tenure, the lender will charge you foreclosure fees. Foreclosure fees usually range from 0%-7% of the outstanding loan amount, and this option may only be available after you have paid a certain number of EMIs. If you’d like to know more about Fullerton India’s personal loans, speak to our representative today!
