Chennai, a major city of Ancient temples, vibrant arts, natural wonders, and a bustling culinary scene makes Chennai, the capital of Tamil Nadu, is one of the most popular tourist destinations in the southern fringes of the country. Hence, it is considered the industrial base that broadly supports the economy. Chennai is also a notable place for the country’s historical and tourism sectors.
Individuals who need financial backup to set out a venture, support a child’s education, manage medical exigencies, etc., in Chennai can opt for a personal loan. However, before availing of a personal loan in chennai, one must have a thorough understanding of the particularities of the credit option and strive to fetch a lower interest rate on the loan amount.
How to get a lower interest on a personal loan?
Individuals can follow the ways mentioned below to get a personal loan in Chennai at a lower interest rate:
- Compare lenders
Borrowers must compare different online lenders and settle for one offering low-interest rate personal loans. It may be a little time-consuming, but it will help one make the right choice and secure the best deal.
- Keep good repayment history
Borrowers can maintain a good repayment history by paying off their EMIs and credit card bills on time. In addition, keeping a good repayment history will give borrowers an upper hand in negotiating for better interest rates on personal loans.
- Look for seasonal offers
Borrowers receive notifications regarding special offers and discounts in their mail or phone. One must make the most of these special offers as they will reduce the loan expenditure significantly. These special offers are given out during the festive season, allowing individuals to reap the benefits of limited-period discounts and enjoy low interest rate personal loans.
- Maintain a healthy credit score
The credit score is the three-digit numerical summary of one’s creditworthiness. Hence, lenders scrutinise this to decide on loan amount and interest rate. A score of 750 and above is considered to be ideal, helping individuals bag personal loans at a lower interest rate. Moreover, a higher credit score positions borrowers advantageously, allowing them to strike a negotiation with lenders. In this regard, borrowers must know how CIBIL score is important for personal lending.
- Use professional credentials
Lenders prefer applicants who have a high income or salary income status. Hence, borrowers who work in a reputed MNC or private/ public form and have stable earnings must use these professional credentials in their favour to draw lower interest rates on the loan amount. Income stability assures lenders of borrower’s repayment potential, and hence they are likely to offer lower interest rates.
Furthermore, having a long employment history helps borrowers receive a lower interest rate as their job stability reduces the chance of defaulting on the EMI payouts. However, one must know how to plan personal loan EMI repayment better despite income stability.
A good tie with the existing lender can also help borrowers get lower personal loan interest rates. As the lender is already aware of the borrower’s credit behaviour, they can extend a competitive interest rate and better terms of service.
After securing an affordable interest rate on personal loan, borrowers must proceed to apply for the credit option.
How to apply for a personal loan online?
Here are the steps that will help an individual apply for a personal loan in chennai:
Step 1: Visit the official website of the preferred lender and head to the product page to select personal loan.
Step 2: Now click on ‘Apply Online and get redirected to the online application form.
Step 3: Provide the mobile number and OTP for authentication purposes.
Step 4: Share personal, employment and income details. Upload necessary personal loan documents.
Step 5: Mention the desired loan amount and submit the form.
A representative from the lending institution will contact post submission and take the application procedure ahead. To receive quick approval, borrowers must know the mistakes to avoid while applying for a personal loan.
Besides seeking lower personal loan interests, borrowers must also look for pre-approved offers extended by leading financial institutions like Bajaj Finserv. These offers streamline the loan application process and are available on financial products like personal loans, business loans, credit cards, etc. Willing individuals can check their pre-approved offers by submitting their names and contact details.
To sum up, a personal loan is perhaps one of the quickest and easiest financing choices that help borrowers bridge financial gaps with ease. However, people availing of a personal loan in chennai must settle for a lender extending lower interest rates. A lower interest rate will reduce the EMI liability and drastically reduce the cost of borrowing.