a lot of us People take personal loans to meet sudden expenses. Banks give this loan easily in less time. Due to this, the number of personal loan borrowers has increased rapidly. However, banks charge hefty interest on personal loans. However, taking care of some things, we can take a cheap personal loan. Let us know those 5 things, by adopting which we can get a cheap personal loan.
Big savings on reducing interest rate
Always take a personal loan at a reducing interest rate instead of a flat interest rate. By taking a personal loan at a reducing interest rate, you will have to pay less interest. Let us understand this with an example. If you are taking a personal loan of Rs 5 lakh from a bank at a flat interest rate of 12% for 3 years, then you will have to pay an interest of some Rs 1,80,000. That is, your monthly EMI will be Rs 18,889.
On the other hand, if you take a loan of Rs 5 lakh at a reducing interest rate of 12 per cent, then you will have to pay Rs 97,858 as interest. In this way you will save Rs 82,142. By taking a home loan at a reducing interest rate, your EMI will come to Rs 16,607 per month.
These measures can also take cheap loans
- Improve credit score. If your credit score is 750 or more, then banks will give you a personal loan at low interest.
- If you are employed, use your salary account to avail a personal loan. Banks offer personal loans to salaried employees at low interest rates.
- Compare the personal loan interest rates offered by online banks before taking the loan. Try to take the loan from the place where you see the lowest interest.
- If you are going to take a personal loan, then keep an eye on seasonal offers. Many times banks provide loans at cheap interest rates in seasonal offers. Along with this, keep an eye on other charges as well.
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