Personal loan is the common loan, which you can take for your any of the financial needs. You need not to be specific for taking a personal loan. Personal loan you can take for – clearing your debts, remaining amount of your loan, wedding expenses, vacation, education, buying a car, buying the electronic goods or any other expense based on your needs. The rate of loan applied for personal loan is higher than any other loan. Because the personal loan, has the high rate of acceptance than any other loan. Also you don’t need to submit any collateral for taking personal loan. The process of personal loan can take place in short span of time. Unlike home loan, you may get struck at different points. The risk of personal loan is also low.
Why to take personal loan than credit card?
The interest rates for credit card per annum is 36% to 45% and it may vary from lender to lender. Whereas the personal loan interest rates start from 12% to 22% per annum this also varies from lender to lender. Because of the high interest rates of credit cards, people are more preferring to take the personal loan than wasting their money in paying the credit card interest rates. The interest rates for credit card is double that of personal loan interest rates.
How credit score will help you get the low interest rates for loan?
Credit score is the score calculated by the CIBIL based on your credit history. Credit history includes all your loan application, payments, transactions and other information related to your bank accounts and credit cards. Too many credit cards also effects your credit score. IF you have not taken any loans and banks don’t have any of your credit history then your credit score is considered as zero. If you’re applied for loan and paying the loan on regular basis without any miss of the due date than your credit score will reach to in between 780-900, which is considered as the excellent credit score. Credit score in between 720-780 is considered as good credit score and credit score from 50-720 is considered as poor.
Why credit score is important for you in taking a loan?
As credit score shows your transactions and credit history, it will acts as a proof that you can repay the amount. It provides some trust to the lender for getting their amount back. With the good or excellent credit score, you will get the low interest rates for loan. And with poor credit score, lender will apply a high interest rates.
How to know what is your credit score?
You can know about your credit score from CIBIL official websites. By just registering and paying the 470 RS, as the fee you will come to know your credit score through mail. As CIBIL will provide the credit score that is valid by the government. Whenever you do any financial actions that will get noted by the CIBIL to calculate your credit score. Credit score is also calculated by some other financial institutions. But CIBIL score is most preferred.
How personal loan interest rates varies?
It varies based on your credit score and also based on your profile and eligibility criteria of the applicant. So before applying for any personal loan interest rates of low. You must first check your credit score, otherwise your application get noted and will affect your credit score. If your loan application get rejected.