Whether you're looking to borrow your first personal loan or third, one can't deny that it's one of the most convenient ways to tackle urgent financial needs. You don't have to provide collateral against the loan or deal with a mountain of paperwork. There's also no restriction in terms of how you can use the funds. Be it planning a wedding, paying overdue insurance premiums, or renovating your house; you can use the loan amount however you please. Ultimately, what matters is how affordable your personal loan provider is. Apply for a loan only if you can afford it, lest it becomes a source of financial stress later. A personal loan is meant to help you with your financial needs, and you shouldn't regret taking one out. Here are four ways how you can increase your eligibility for an affordable personal loan:
1. Strengthen Your Credit Score
Your credit score is a three-digit number between 300 and 900 that represents your creditworthiness and financial standing. When you apply for a personal loan, your personal loan provider will decide the loan amount, rate of interest, and repayment tenure based on how good your credit score is. Generally, a score of 700 or 750 makes you a reliable borrower. The typical rule is that the higher your credit score, the better it is for your chances of getting a cheap personal loan. Repay existing debt on time and don’t make too many inquiries for new credit.
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2. Compare Lenders to Arrive at a Suitable Offer
If you want a personal loan that meets all your requirements and comes with affordable loan EMIs, proper research is the first step. Evaluating several personal loan providers will go a long way in helping you find one that's just right for you. There are many third-party aggregators online that will help you zero in on a suitable personal loan company. You can view information like the eligibility criteria, interest rate, loan amount, and repayment tenure of various personal loan companies and make an informed decision.
3. Utilize Offers and Promotions to your Advantage
It's not uncommon for personal loan companies to roll out offers or promotions of their loan products from time to time. This could be during the festive season or even otherwise when you're not expecting it. Typically, these platforms will offer a limited discount on the interest rate, processing fee, or both, if you're lucky. Remember that every bit counts towards getting a cheap personal loan, so be on the lookout for such offers so that you can use them to your advantage.
4. Use Your Professional Credentials
While approving your loan application, any personal loan provider looks for factors that denote reliability and good financial responsibility. Suppose you can give them the impression that you're good with your money and honour financial commitments. In that case, they'll be more confident about lending to you. If you're drawing a handsome salary or working in a reputable organization, make sure your lender knows about it. It may help you get a lower interest rate, thereby giving you a cheap personal loan offer.
The above points are four easy tips you can adopt to increase your chances of qualifying for an affordable loan from a suitable personal loan provider. Just ensure you do enough research before zeroing in on a particular personal loan platform. If you're looking for a personal loan company offering affordable personal loans, turn to KreditBee. It is India’s leading personal loan platform that offers easy access to cheap personal loans. To get more information on how you can avail of a business loan with us, email us at [email protected], and we will take it from there.