1. Introduction
Nowadays, in the era of inflation, taking a personal loan has become necessary for many people. But before taking a loan, it is very important to keep in mind the interest rate. If you take a personal loan with low interest, you can save thousands of rupees. This guide will tell you:
- How to get a personal loan at low interest?
- What things increase the interest rate?
- What should be checked before taking a loan?
2. What Is a Personal Loan?
Personal loan is a loan without collateral, in which you take money from a bank or a lender and pay back the loan in EMIs within a fixed time.
Some Common Reasons:
- Paying off the loan in one go (Debt Consolidation)
- House repair
- Medical emergency
- Wedding or education expenses
3. Why Interest Rates Matter
Interest is that extra money which you return along with the loan. If the interest is low, then your total payment will also be low.
Example:
- Loan of Rs.1 Lakh for 2 years:
- 10% interest = ₹11,000 extra
- 14% interest = ₹15,000 extra
- Difference: ₹4,000!
That’s why, taking a loan with low interest is beneficial for you.
4. Factors That Affect Personal Loan Interest Rates
- Credit Score (CIBIL Score)
- 750+ score = Low interest
- Less than 600 = High interest
- Income and Job
- Stable job and high income = Better rate
- Loan amount and time
- Small loan or low time = Low interest
- Existing loans (Debt-to-Income Ratio)
- If you have already taken loans, then the interest can be higher
- Lender type
- Banks, Credit Unions, Online Lenders – each has a different rate
5. How to Find Personal Loans with Low Interest
- Compare different lenders
- Websites like:
- BankBazaar
- PaisaBazaar
- LendingTree
- Improve your credit score
- Pay your bills on time
- Reduce your existing loans
- Try credit unions
- They give less interest than banks
- Check pre-qualification
- You can see rates without affecting your credit score
- Co-signer loan (if your score is low)
- You can join hands with someone with good credit score
6. Best Banks and Lenders Offering Low-Interest Personal Loans (2025)
Some companies offering low-interest personal loans in 2025:
✅ SoFi – starting from 8.99%
✅ LightStream – less than 7%
✅ Marcus by Goldman Sachs
✅ Navy Federal Credit Union
✅ Discover Personal Loans
(Note: Rate will depend on your profile)
7. Red Flags to Avoid
❌ Payday Loans – High interest upto 30-50%!
❌ Prepayment Penalty – Extra charge if you want to repay early
❌ Hidden Fees – Check processing fee, late fee
❌ “No Credit Check” Loans – These can be scams
8. Tips Before You Apply
✔ Check Credit report (CIBIL, Experian)
✔ Estimate payment using EMI calculator
✔ Take only as much loan as is necessary
✔ Read Terms & conditions carefully
Conclusion
Taking a personal loan is easy, but taking it smartly is a must. If you take a loan with a low interest rate and maintain your credit score, you can save money. It is better to compare, research and then decide.
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