How to Negotiate a lower Interest rate on a Personal Loan?
By Ajay Saptaputre | October 25, 2017

We do face financial problem when we have some important expenses like a family wedding, vacation abroad, medical emergency, household shifting, payment of credit card bill, repayment of an existing loan and the like as at that point of time we don't have enough money to meet these expenses. So now there is no need to bother as a vehicle called "Personal Loan" is there to bring you out of such a problem and will help you to easily pay off such expenses.

Personal loans are offered by many financial institutions such as Banks, NBFCs, etc. All these companies have their own rules to follows and the quantum of loan, its tenure and rate of interest vary from lender to lender.

Personal loans are very easy to obtain in a hassle free manner and they are available even within 48 to 72 hours. Interest rates on a Personal Loan are very agile, they can be 10% for one person and can be 15% for the other person.

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Before applying for a Personal Loan, it's very important to get all the necessary information about it like Which lenders are offering it?, At what interest rates?, Can interest rates be negotiated?, if yes, then How to negotiate a lower interest rate on a personal loan? And so on....You need also to know your credit score before applying for a personal loan. I need to mention here that now-a-days, you can get your credit score checked for free online by many companies who provide this facility.

• Make comparison of interest rates among various lenders in advance: Obtain quotes from other lenders for the best interest rate available for a personal loan
• Show benefits offered by other lenders that your lender is not offering: Like discount in processing fee, higher quantum, etc.
• Display your favourable things and financial profile: Like higher salary, good employment, lesser liabilities, etc.
• Your credit score: If you have your credit score more than 750+ then the lender will offer you loan on lower interest rate
• Your credit history: If you have repaid all your past dues in timely fashion, it will help getting lower interest rate on loan
• Use your relationships: You might have good relations with your banker, encash that for getting attractive rates
• Develop negotiation skills: Before applying, just practice as to how to present yourself in front of the lender. This will definitely help you in negotiation
• Speak to your lender in person: Try to avoid talking to the lenders on phone, meet them in person
• Take loan from newer banks who want to grab the market share: Newer banks are offering personal loan at lower interest and promptly. Go for it

Interested to know Points to be considered before Applying for a Personal Loan

I am sure that if you keep in mind the above mentioned points while negotiating for Personal Loan, the lender will readily offer you the best possible & lowest interest rate. Further, if you have already taken a personal loan at higher rate then make enquiries to get the rates offered by other lenders. If any of them is lower than your existing rate, get the new personal loan and just pay off the existing loan so that you can pay less interest in future.