Well, it may sound odd to you that why you should not always go for the lowest possible EMI when you choose a money lender. People usually think that low EMI means they can save more from their monthly income for themselves which is true but they didn’t notice that lower the EMI goes, the higher the rate of interest and time to finalize the debt goes. This means if you choose the lowest possible EMI you will pay more amount than what you pay in normal EMI. However, sometimes it’s because of some circumstances that you had to choose low EMI but always try to choose as high as possible.
How you can get the maximum loan amount?
There are different eligibility criteria that vary from lender to lender but there are some key factors used by them to determine the maximum loan amount that can be sanctioned to you. These factors include your income, liabilities, whether you are a salaried individual, self-employed, or a professional, your credit score, the company you are working for.
You must maintain and finalize all your previous loans or credit card dues properly to gain a higher credit score which is closer to 900. This will make you trustworthy and lenders will feel that you are a safe borrower and they will offer you a greater loan amount.
What are the interest rates for a personal loan?
The banks and non-banking financial companies offer personal loans with a starting interest rate of 11.49%. The interest rate of a personal loan (which is unsecured) is higher than other secured loans like home loans, car loans, business loans, etc.
It would always be better to borrow from a Licensed Money Lender and always check online for offers. You can compare offers from different lenders like Fast Loan service, online loan approval, lower interest rates and then choose what suits you best.
What factors affect the interest rate on personal loans?
The interest rate on a personal loan is higher than other loans because it’s unsecured but some factors also affect the interest rate of a personal loan. For example, your credit score, loan amount and tenure, your income level, your previous relationship with the lender, etc.
The current amount of money you earn and your liabilities such as unpaid loans, current EMIs, outstanding credit card bills, etc. will directly affect your repayment capacity. This will result in a lower loan amount sanctioned to you.
