Opting for Instant Personal Loan Know How to Get Better Interest Rate

Maintain Good Credit Score

Compare Different Types of Loans 

Check Interest Calculation Method

Use comparison platforms for checking the current interest rates being offered by various lending institutions. Interest may be fixed or floating. With a fixed RoI, you will be paying a fixed sum of money, irrespective of the market fluctuations. On the other hand, in case of fluctuating rate, the lending institution will modify the interest amount as per the market condition. The EMI may differ accordingly atregular intervals. Opt for this type of loan if the market conditions are favourable and the RoI is expected to be quite low. However, bear in mind that it will carry an element of risk. 

Type of Applicant 

• RoI will also differ as per the applicant. Some institutions offer preferential RoI for women and pensioners.
• Ensure to check with your lender if you fall into the category of applicants who can avail a lower interest rate.

Check for Discounts and Seasonal Offers 

• Make sure you do some homework for checking seasonal offers. Many lenders announce discounts during festival season or holidays. This can be the right opportunity to bag a lower interest rate.

Opt for Known Lender 

• Lenders often prefer applicants who have had a relationship with them as they are aware of your financial history. You should consider the financial institution with which you have a savings or current account, as it will give you a higher ability to negotiate for a better rate.-

Put Up Collateral 

The formula is simple. The higher the risk, the greater the interest amount. When you put up collateral, you reduce the risk of non-repayment, which gives you an ability to get a lower interest rate when compared to an unsecured loan.

Reduce Loan Term 

If you can repay a higher EMI, opt for a lesser loan term. This will automatically reduce your interest rate.

Avoid Applying to Multiple Lenders 

Applying to multiple lenders will affect your credit score, automatically reducing your chances of getting approval for a loan. With each inquiry, your credit score drops by a few points. In such instances, you might be required to settle for a higher RoI as you are temporarily termed as a risky applicant.

If you're wondering how much loan can I get on 50000 salary, the answer depends on several factors, including your credit score, the lending institution's criteria, and the loan term. Generally, with a salary of 50,000, you could qualify for a loan amount ranging from Rs. 50,000 to Rs. 5 Lakh. 

Thus, shopping for the best deal with require some smart work. This is where online marketplaces for comparison come handy. Choose your lender based on interest rates, loan terms, tenure, eligibility, etc. However, apply to the one that is most suitable for you.

ALSO READ: Points To Consider Before Taking A Loan

To Conclude

for an instant loan in lockdown, online applications are the best way to proceed in this global pandemic situation.  Make sure you follow the above guidelines while applying for emergency personal loans. All the best!