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5 Smart Ways to Get Cheap Personal Loan
By Anupama Deshpande | Jan 10, 2019

Personal loan is that type of loan which requires no collateral or security. It is used to meet any urgent financial need or emergency. people can avail this loan to meet the expenses of a wedding, medical treatment, debt consolidation, home renovations, education for education and so on.

Personal loans can be availed by any bank or NBFC to meet any unplanned and immediate need. Personal Loan is available to salaried as well as non-salaried individuals and has captured very large market of loan segment.


For availing personal loan, one requires to fulfil certain criteria as specified by the lender i.e. bank or NBFC. Lender checks some factors such as your income, age, credit score, existing debt to income ratio, etc. to decide the loan amount and the interest rate thereon.

Personal loans carry a higher rate of interest compared to other forms of loans such as home loans or gold loan. Personal Loan interest ranges from 11% to 25%. However, with some plus points in your hand such as regular income, good credit history, good relationship with the lender, you can negotiate on the interest rate with the lender.

Given below are 5 smart ways to get cheap personal loan:

Suggested reading Difference between Loan against Property and Personal Loan

(1) Improve your CIBIL Score

You need to check your CIBIL score first. If it is below 750 then will not be considered good by the lenders and they will offer you a personal loan on higher interest rate.

You must take some serious and effective steps to improve your CIBIL score above 750 mark. If you are able to do so then you will be in a position to get the personal loan at lower rates which will save your cost of interest payment.

(2) If You Own a House

If you are an owner of a house then you will get personal loan at lower interest. It has been seen that the interest rates on the personal loan are lesser when you own house than that if you stay in a rented house.

Also read Can a Student Apply for a Personal Loan?

(3) Work for a Reputed Company while Availing Loan

If you are working for a reputed company, you will be offered lower interest rate on personal loan. Banks and NBFCs have a list of reputed companies and if your company (which you are working for) falls into that list, you will get loan at cheaper rate.

(4) Have a Good Income

If you are earning well and have a regular income, you will get personal loan at cheaper rate. If you draw a salary in the range of Rs 30000 to Rs 50000 then you will be offered more rate than the rate which is offered if you are earning more than Rs 50000.

(5) Take Personal Loan from the Same Bank Where You Maintain Your Bank Account

If you apply for personal loan from the bank where you are having your own bank account then you might have developed healthy relations with the banker. In that case, you get an opportunity to negotiate with the banker on interest rate of personal loan. Your banker may also consider lowering the interest because he knows you personally for many years and is well aware of your credit worthiness in due course of time.

The Bottom line

As Personal Loan is a loan offered at comparatively higher interest rate which varies from customer to customer hence it is very crucial for you to get a good bargain on your personal loan.

In above article, we have mentioned some of the important ways which will help you getting a better deal of personal loan.

About Anupama Deshpande
Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.
Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.
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