If we talk about taking a loan these days it is very easy to get a loan if you are eligible to get a loan. But before taking a loan from a bank we definitely check the rate of interest charged to repay that amount back. So we all try to get a loan on low rate of interest whether it is a personal loan, car loan or home loan. We have to aware that what are the current interest rates .today loans seekers are quite smart before taking a loan they always check what the hidden charges behind the loan repayment are and also what is the interest rates. Sometimes people want loan where they don’t want to pay any kind of interest. To attract these kinds of buyers who likes no interest facility some Banks offer pay later and credit card services. Now days almost every bank is offering free credit card facility for a limited number of days .For example with some banks we are having Pay Later services we can get 45 days Zero interest digital card. We can pay our bills, Shop online and pay to nay merchant UPI ID Instantly. There are many such kind of services in the market like Amazon Pay later, Lazy pay, ePayLater who are providing interest credit up to a limited number of days. However we have to make a limited use of ‘No Cost Emi’ facility because this basically a marketing strategy and one who avail this facility may end up with paying a good amount as processing fee and commissions.
The limitation in availing a credit card service is that you can’t avail a large amount of loan for a long period of time. If you want a huge amount of loan and of course with tenure to repay you have to opt for other loan options. One thing which we have to take care while taking a loan is the interest rate charged for the repayment so always go for a secured loan.
You can have a personal loan easily but you will be charged almost the double amount the housing interest rate. For availing a secured loan we have to submit gold, property or fixed deposit. It is advisable to apply for this kind of loan at banks whether a public or private bank rather than NBFC because NBFC interest rate is higher than banks.
If you are not interested in availing a secured loan and want to go for a unsecured loan you can have that loan also on low rate of interest by taking some smart moves.
Factors that lenders consider before sanctioning a loan
1. The first Factor is your creditworthiness. If we talk about a valid credit score it falls between 300 and 900 and anything above 750 is considered as excellent. But the question is how you can ensure this first of all monitor your expenses and always make timely repayments because if payment will be delayed then it will have a direct negative impact on your credit score. if you have a good repayment history it will be easy for you to negotiate on interest rates with your lender if you apply loan in the future.
2 The second factor that should be considered is if you want to apply for a loan first check with the existing lenders as they can offer you better service terms and also charge you lower rate of interest because of your pre existing and good relationship with them. And also find out other lenders by visiting a financial market place where you can easily compare and choose between different types of loans it will help you will give you a clear picture of the market. And you can compare and check who can offer you a lower rate of interest. Please give attention while discussing the interest rates with the lender there are two types of calculation methods Flat and reduced. In the first method interest is charged on the actual amount until it is fully paid it will cost you more. While in the second interest is calculated on the outstanding principal this will cost you less.
3. Lastly if you are working in a reputed company it will help you to grab a good deal as individuals who work in reputed organizations are well trusted because they have stable incomes and it is pre assumed by the lenders that they will repay the amount on time. And if your income falls in the category of income of 1 lakh per month it means that you can afford and the chances of delayed payments are very less. Today lenders trust those individuals who earn more and grant loans at lower interest than a person who has an average income because the chances of failure of repayments are high.