How Do I Get A Loan With Low Or No Interest?

When you choose a personal loan, you should select one with affordable or low interest rates. You should compare various lenders and select the one that gives an attractive and affordable interest rate. Although almost all lenders maintain more or less the same rate of interest, you can obtain special discounts and offers from some.

Here are some tips to get a loan with low or no interest:

Leverage Your Credit Score

Banks give you personal loans based on your credit score. If your credit score is high, you have a better probability of getting a personal loan. Your credit score can be maintained by making timely payments. Banks prefer individuals with a credit score above 700. So, it is good to maintain a credit score in the range of 700 to 900. 

Have A Good Repayment Track Record

A good repayment record is also essential in getting a lower interest rate for personal loans. If your repayment record for another loan is good, you will be in a better place for negotiating on interest rates.

Make Use Of Seasonal Offers

Banks provide attractive interest rates to equal the competitive corporate rates offered by other banks. These attractive schemes are launched usually during the festival season and last for a restricted time period only. You can take up a personal loan and get a low interest rate in such times. 

Understand Interest Calculation Method

Just because a personal loan scheme has low interest rates, do not choose it. Understand the complete loan calculation. Even though some financial lending institutions may offer personal loans with low interest rates, sometimes the computation does not include the slow repayment of principal and interest amount.

Build And Maintain A Good Relationship With The Bank

It is good to maintain a strong relationship with the bank from which you are availing of a personal loan. Banks give low interest loans to those customers who have a good credit profile and share a good relationship with the bank. 

Your Employer

If you are working for a very reputed company, then you may get a low interest loan. The financial lending institution takes into account your employer’s reputation and credibility. 

Also Read: What is the minimum CIBIL™ score to get a personal loan