Personal Loan Interest Rates and Charges
Interest rates and other charges for personal loans applied through Moneyview are transparent and affordable with no hidden costs. Take a look at the applicable charges below -
Foreclosure and Part-Prepayment Charges
The foreclosure and pre-payment charges for personal loans through Moneyvieware as mentioned below -
Factors That Affect Personal Loan Interest Rates
Lenders set interest rates based on their cost of funds and their assessment of the credit risk of their loan applicants. The following are some of the most important elements that can affect your personal loan interest rates:
Credit Score
A number that indicates your creditworthiness is your credit score. It demonstrates your financial stability and establishes a certain level of confidence between you and the lender. Maintaining a high credit score can help you become more qualified for personal loans and also improve your chances of having the loan approved.
Income
A significant factor influencing your interest rate is your income level. Banks typically charge borrowers with higher-income jobs an interest rate that is lower than that of borrowers with lower-income jobs. Because higher incomes are suggestive of better financial standing and a greater likelihood of timely loan payback, banks frequently rely on them for loan repayment.
Repayment History
One of the most important things that lenders take into account when determining the interest rate on a personal loan is your repayment history. Maintaining a strong payback history guarantees that lenders view your credit profile as low-risk when granting new loans, including personal loans.
Use a personal loan calculator to calculate multiple EMIs for varying loan amounts and tenures to better plan your repayment schedule and assess whether the loan fits within your budget.
Existing Relationship with the Lender
In case you have done business with a lender before, they might provide you with competitive interest rates on personal loans. This is because lenders typically try to retain clients in this manner and are inclined to trust borrowers whose financial records they have on file.
Additionally, a good rapport between you and the lender helps speed up the approval process. An EMI calculator can be used to determine which offer is the best if you have received many offers from different lenders with whom you have done business.
Debt-to-Income Ratio
This figure shows you how much debt you owe in relation to your income at any given point. The bank granting you the loan may charge you a higher interest rate since it is deemed riskier if your high salary is mostly used to pay off your existing debts. Banks are likely to impose a higher interest rate on borrowers with high debt-to-income ratios since they are viewed as a burden on the lender.
Types of Interest Rates
There are two main types of personal loan interest:
1. Reducing or Variable Interest Rate
Reducing or variable interest rates is a type of personal loan interest rate that fluctuates regularly. A personal loan's variable interest rate is tied to the Reserve Bank of India's repo rate adjustments. The adjustable interest rate is also known as a lowering or variable interest rate.
2. Fixed or Flat Interest Rate
The interest rate on the loan amount is fixed under this method and remains constant throughout the loan term. The lender determines the rate based on assumptions about the average discount rate over the loan term.
How to Get the Lowest Interest Rate on Personal Loans?
The best way to meet your urgent financial needs is to apply for low-interest personal loans. This makes it easy for you to make repayments. Use the strategies below to get the lowest interest rate on a personal loan.
1. Keep Your Credit Score in Good Shape
Your credit score measures your creditworthiness based on previous credit management behaviors. A credit score of 700 or 750 makes you eligible for a personal loan. In general, a higher score indicates a better chance of loan approval.
2. Shop Around for the Best Deal from Different Lenders
A little research will help you find easy personal loans. Compare personal loans from various providers to determine the best interest rate and features. This will take some time, but it will help you make the most informed decision possible.
3. Keep an Eye Out for Seasonal Deals
Customers are informed of special offers by SMS and email by lenders. If you want to save money on your loan, keep an eye out for these bargains. These offers provide you with short-term interest rate discounts. During the holiday season, these discounts are typically available when you apply online.
4. Try Negotiating with Your Lender
If you earn a good income and work for a recognized public or private company, the lender considers you a trustworthy candidate. So take advantage of this possibility to get lower interest rates. Your company's good name can help you get a lower interest rate because the lender is certain that you will have the funds to make the payments on time.
