What are the Factors That Affect your Personal Loans Online Interest Rate
Personal Loan can help you to survive during the financial crisis. Whether it is for a medical emergency, home loan down payment, rental home security deposit or just a trip to your dream destination. Blog: https://amritaagarwal8.webnode.com/l/what-are-the-factors-that-affect-your-personal-loans-online-interest-rate/
Personal Loan can help you to survive during the financial crisis. Whether it is for a medical emergency, home loan down payment, rental home security deposit or just a trip to your dream destination.
Blog: https://amritaagarwal8.webnode.com/l/what-are-the-factors-that-affect-your-personal-loans-online-interest-rate/
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<strong>What</strong> <strong>are</strong> <strong>the</strong> <strong>Factors</strong> <strong>That</strong> <strong>Affect</strong> <strong>your</strong><br />
<strong>Personal</strong> <strong>Loans</strong> <strong>Online</strong> <strong>Interest</strong> <strong>Rate</strong>?<br />
<strong>Personal</strong> Loan can help you to survive during <strong>the</strong> financial crisis. Whe<strong>the</strong>r it is<br />
for a medical emergency, home loan down payment, rental home security<br />
deposit or just a trip to <strong>your</strong> dream destination. A personal loan has <strong>the</strong> potential<br />
to take you out from any kind of cash crunch. <strong>Personal</strong> <strong>Loans</strong> <strong>are</strong> easily<br />
available and quick to avail with least of <strong>the</strong> formalities. But before you go for a<br />
personal loan, it is essential to consider many things among which <strong>the</strong> interest<br />
rates at which <strong>the</strong>se loans <strong>are</strong> offered is <strong>the</strong> most important one, some lenders<br />
offer low and attractive interest rates while o<strong>the</strong>rs offer it at high and<br />
unaffordable rates.<br />
<strong>Factors</strong> that <strong>Affect</strong> <strong>Interest</strong> <strong>Rate</strong>s of <strong>Personal</strong> Loan
Income Level and Loan Amount Comparison:<br />
The personal loan interest rate is totally dependent on <strong>the</strong> income and <strong>the</strong><br />
company in which <strong>the</strong> applicant works. Lenders comp<strong>are</strong> <strong>the</strong> income of <strong>the</strong><br />
applicant with <strong>the</strong> loan amount and <strong>the</strong>y will gauge if you <strong>are</strong> capable to repay<br />
<strong>the</strong> loan without defaulting. The interest rate varies as per <strong>the</strong> risk involved as<br />
well.<br />
Loan Tenure:<br />
This is yet ano<strong>the</strong>r important factor which determines <strong>the</strong> interest rate of a<br />
personal loan. The shorter <strong>the</strong> loan tenure <strong>the</strong> higher <strong>the</strong> interest rate will be and<br />
vice versa. When <strong>the</strong> return is for a long period of time <strong>the</strong> rate will decrease<br />
respectively.<br />
Credit Rating of <strong>the</strong> Individual:<br />
CIBIL Score is considered by each bank to understand <strong>the</strong> creditworthiness of<br />
<strong>the</strong> applicant. In case any default payment history is found, or a huge<br />
outstanding loan amount, banks have every right to reject <strong>the</strong> loan application or<br />
charge a higher interest rate against <strong>the</strong> loan. Hence, it is very important to keep<br />
a good track record of financials for present and future plans.<br />
The Company in Which you <strong>are</strong> Employed:<br />
Lenders have categorized private companies according to <strong>the</strong>ir track record and<br />
company worth and stability. These categories <strong>are</strong> super cat A, cat A, Cat B, Cat<br />
C and so on. The applicant working in Super Cat A will be considered <strong>the</strong> most<br />
eligible for a loan and will be charged a lower interest rate as comp<strong>are</strong>d to Cat C<br />
and Cat D employees. Though, <strong>the</strong>re <strong>are</strong> o<strong>the</strong>rs factors too to decide <strong>the</strong><br />
eligibility and interest rate of an applicant.<br />
Debt to Income Ratio:<br />
This is also an important prospective which lenders generally look for.<br />
Your Debt to Income ratio signifies <strong>the</strong> difference between <strong>your</strong> net total<br />
monthly income and <strong>the</strong> total payable EMI which you <strong>are</strong> paying against all<br />
<strong>your</strong> outstanding debt mostly. An applicant paying a larger part of his/her salary<br />
towards <strong>the</strong> outstanding debt can be rejected for a loan or may be charged a<br />
higher rate of interest.<br />
Even a little relief on <strong>your</strong> personal loan interest rate can help you a lot to save<br />
some money and add to <strong>your</strong> finances. Hence, never leave any scope and<br />
always try <strong>your</strong> best to get <strong>the</strong> best interest rate for <strong>your</strong> personal loan, you can<br />
do it easily by having a proper research and considering <strong>the</strong> above-mentioned<br />
points.