How to Get Lowest Personal Loan Interest Rate in Chennai

Compare the Lenders: To enjoy the lowest quick loan interest rate in Chennai,the first step that a borrower should do is to compare the various lenders. Yes, start comparing the lenders on interest rates and choose the one, offering the lowest interest rate. With the help of a lower rate, you can also expect to have a reduced EMI which ultimately lowers your loan repayment burden.

High Income: If your monthly income is high and you know the art of managing your expenses without facing debt, you have a good credit profile. High income shows one can manage to repay the loan easily if his monthly expenses are comparatively low as compared to your income. Yes, a good monthly shows a good credit profile if an individual knows how to manage his expenses well. And, if everything is manageable and a lender can see an easy loan repayment in the future, one can expect to enjoy a lower interest rate.  

Build/Maintain a Good Credit Score: If you are someone who does not have a score, the step is to build a score. Let’s have clarity on the same below.

What is No/Zero Cibil: A zero or no cibil is a situation which arises when an individual does not have a prior financial history. Yes, be it applying for a credit card or availing a loan, such an individual does not have any, hence is a first-time loan borrower. Thus, in such a scenario, he needs to build a score first to get the personal loan approval without any hassle.

Steps First-time Loan Borrowers Should Take:

• One can start by applying for a secured credit card
• Apply for a short-time personal loan or consumer durable loan
• Approach his lender, where he is having a savings account
• Check if his company has a tie-up with a particular lender, in which his salary gets credited  

These steps help in building a credit profile first and a score gets generated after 6 months. Once your score gets generated and you are on a repayment track, try to maintain the same with timely payments. Yes, paying your dues on time helps in availing a personal loan without facing rejection. 

Ways to Improve/Maintain a Cibil Score

• Timely Repayments
• Consolidate Your Existing Loan into One
• Do Not Apply for New Loan/Credit Card(until & unless it’s urgent)
• Say No to Complete Debt Settlement
• Avoid Checking Your Cibil Score Too Often 
• Do Not Send Multiple Loan/Credit Card Queries
• Use Your Savings if Possible to Fulfill Urgent Financial Needs 

Follow these steps to improve or maintain your three-digit numeric summary to enjoy a hassle-free personal loan journey. As mentioned above, what crucial role a good cibil/credit score plays in grabbing the best deal. Lenders do look for a good score before giving personal loan approval. A high score is a reflection of a good repayment history, which means a lender can trust a borrower as far as loan repayment is concerned. 

Employment Type: If you are a salaried individual and that too a government employee then one can easily expect a lower interest rate. Yes, being a salaried professional means your income is stable and being a salaried government employee means your job ,as well as income both, are stable. Thus. lenders prefer such applicants as there would be fewer chances of loan rejection, which means attractive interest rates. 

Category of the Employer: If your employer comes under CAT A, CAT B or Fortune 500/100 Company, there are higher chances of getting a personal loan at a competitive interest rate. Working in a renowned company means you can be trusted for loan repayments as multinational companies usually have no firing policy. Well, which means job stability that leads to easy loan repayments. 

Company Tie-up: If your company has a tie-up with a lender, where your salary gets credited then you can expect to get a lower interest rate. Yes, a salary account means a regular flow of income which means easy loan repayments. Here, maintaining the good terms with the lender can help as you can negotiate for the lowest quick loan interest rate in Chennai.  

No Current Loan/Liability: If you are someone who does not have any current loan or another financial liability, it would be easy for you to get the lowest personal loan interest rates. If a borrower is already loaded with an extra financial burden, it would be difficult for him to repay the loan as the chances of default are higher in such a case. Thus, instead of giving the loan at a lower interest rate, the lender would give loan approval at a higher rate. So, make sure you are not having an existing loan to enjoy the lower interest rates.