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How can you get the best deal on personal loans?

6 minsOctober 8, 2017

When you are applying for a personal loan, one of the first things that you should be aware of is that they have higher interest rate as compared to other loans. This is because they are available easily and the processing involved in these loans is very simple and straightforward, and these loans are available sans any collateral.

Here are few steps to help you make the loan affordable:

  • Comparative Analysis
    • Whenever you are applying for a personal loan, you should compare various sources and learn about the existing rates available. This will help you not only choose the lender who provides you with best rates, but also lower your expenses. There are many websites that provide you with loan quotes as well as a comparative account of all the existing lenders. You should never compare only on the basis of interest charges; there are other more important points like processing charges, documentation complexity, pre-closure charges, online tracking, customer support to name a few.
  • Good credit score
    • When your credit score is high, you get a good deal on your personal loan in terms of lower interest rates and higher amount being sanctioned. To maintain a good score, you should pay your bills, other loan repayments and credit card payments regularly. You should not default on any of your payments and maintain a decent repaying capacity. If you close all your existing loans, you will qualify for better deals. Also, it is important to assess the reason for opting for a personal loan and work out a matrix where you can pay back at the earliest.
  • Make hay while the sun shines
    • Many banks provide attractive offers, waivers, gifts and other goodies on personal loans during the festive season. Sometimes, there are exclusive offers on holiday packages, household goods, etc. Therefore, you can make use of these offers to get good deals on your personal loans. This will save you a great deal of interest costs that you would have otherwise paid.
    • So, make the most of the sale season and other off-season offers to get the most from your personal loans.