How to get Lowest Interest Rate on Personal Loan

• Improve your credit score

If you have a stellar credit score, without any doubt, it influences the rate of interest offered. So, if by any chance you have any kind of outstanding debt, ensure timely bill payments, and don’t forget to manage credit utilization to boost your credit score. 

• Demonstrate Stable Income and Employment

We at Stashfin favor borrowers with a stable and steady income and employment history. So, ensure that you provide proof of consistent earnings and job stability, as it’ll enhance your credibility, potentially resulting in a lower rate of personal loan interest rate.

• Opt for a shorter tenure

While longer tenure may seem appealing due to lower monthly payments, they often come with higher interest rates. However, choosing a shorter tenure might increase your monthly payments but definitely reduces the overall interest amount paid. 

• Improve Debt-to-Income Ratio

Your debt-to-income ratio (DTI) plays a crucial role while your loan application is being evaluated. Therefore, lowering your DTI by paying down existing debts or increasing your income before applying for this loan type can quickly improve your chances of securing a favorable interest rate.