According to the Indian Brand Equity Foundation, consumer spending in India is heralded to quadruple to a whopping US$1.77 trillion by 2025! This is miles away from the US$431,69 billion of 2005! This means that the middle class population has grown ten times over, with a consequent three-fold hike in household spending! With sky rocketing expenses, it is only natural that people resort to personal finance loans to aid them in spending on important things like housing and vehicles. Personal loan interest rates are often not taken into account in the hurry to get financial aid.
The key is to be patient and shop around before accepting financial aid from banks. While personal loan interest rates are controlled by the industry, there is also a hugely competitive market with tons of institutions willing to help you. Therefore, some banks may offer lower rates than others and looking around for the best deal is better than getting a loan that cannot be repaid!
Tips on Landing the Best Personal Loan Interest Rates
Availing affordable personal loan interest rates can be tricky. Yet, this is one of the first things that must be considered while looking for a loan. Always ensure that you will be able to pay back the loan and that the personal loan interest rates are not too high to repay at the end of the period.
Check for Penalty during Prepayment: Since some people might choose to prepay loans to put an end to the debt, always check if the bank allows part prepayments. If they do, then keep in mind the time when it starts and be aware of the costs incurred because of the prepayment.
EMI: While a loan with a smaller EMI amount may catch your fancy, know that this could actually prove to be bad in the long run, as this may means higher personal loan interest rates. Therefore, calculate the total cost of the loan and then figure out the EMI that suits you.
Credit Score: Capitalize on a good credit score if you possess one. This could lead to lower interest rates than what could have been charged if you had a bad credit score. If you have a high credit score according to CIBIL (Credit Bureau India Limited), make sure you make full use of it and receive the best personal loan interest rates.
Get Help: Seek the help of a trusted personal loan broker or even an online personal loan calculator to find out about the most affordable and best personal loan interest rates for the period in which you are borrowing.
Interest Rates: Ensure that you are informed about the kind of personal loan interest rates being levied on you. Choose between fixed and adjustable rates. Fixed rates are usually preferred as the rates do not change during the amortization period. Adjustable rates increase or decrease depending on national lending rates and are not always for the best.
Personal Loan Interest Rates – Get the best personal loan interest rates from India’s leading bank, Citibank. Citibank was named one of the ‘World’s Best Internet Banks in Asia 2010’ by Global Finance Magazine. Visit their website at www.online.citibank.co.in for more details.
