How to Get an Instant Personal Loan with Low Interest Rates
However, securing a low interest rate is crucial to avoid excessive repayment burdens. If you’re looking for ways to get an instant personal loan with low interest rates, this guide will help you navigate the process effectively.
1. Maintain a High Credit Score
Your credit score (CIBIL score) plays a crucial role in determining the interest rate on your personal loan. Lenders prefer borrowers with a high score (750 or above) as it indicates good creditworthiness.
How to Improve Your Credit Score?
✔ Pay your EMIs and credit card bills on time.
✔ Avoid multiple loan applications in a short period.
✔ Keep your credit utilization ratio below 30%.
2. Compare Loan Offers from Different Lenders
Different banks and NBFCs offer personal loans at varying interest rates. Use online comparison tools to check interest rates, processing fees, and other charges before finalizing a lender.
Top Banks Offering Low-Interest Personal Loans (2025)
- HDFC Bank – 10.50% p.a. onwards
- SBI – 9.60% p.a. onwards
- ICICI Bank – 10.75% p.a. onwards
- Axis Bank – 10.99% p.a. onwards
(Rates may vary based on eligibility and loan amount.)
3. Choose a Short Loan Tenure
A longer loan tenure may reduce your monthly EMI but can increase the total interest paid. Opting for a shorter tenure will help you secure a lower interest rate.
4. Maintain a Stable Income and Employment History
Lenders prefer applicants with stable employment and consistent income. If you have been working with a reputed company for a long time, you may qualify for a lower interest rate.
Who Gets the Best Interest Rates?
✔ Salaried employees in government or MNCs
✔ Self-employed professionals with a stable income
✔ Individuals with no outstanding debts
5. Apply for a Pre-Approved Loan
Banks and NBFCs often offer pre-approved personal loans to customers with a good repayment history. These loans come with lower interest rates and faster approval.
Tip: Check your bank’s app or net banking portal to see if you have a pre-approved loan offer.
6. Use an Existing Relationship with the Bank
If you have a salary account or have taken a loan with a bank before and repaid it on time, they may offer you a discounted interest rate on a new personal loan.
7. Opt for a Secured Loan If Needed
If you’re struggling to get a low interest rate on an unsecured loan, consider a secured personal loan by pledging an asset like an FD, insurance policy, or property.
8. Look for Seasonal Offers & Discounts
Many banks provide special interest rate discounts during festive seasons. Keep an eye on such offers to secure a lower interest rate on your loan.
9. Avoid Applying with Multiple Lenders Simultaneously
Each loan application results in a hard inquiry on your credit report. Multiple inquiries can lower your credit score and reduce your chances of getting a loan at a lower interest rate.
Final Thoughts
Getting an instant personal loan with a low interest rate requires careful financial planning, a good credit score, and thorough market research. Follow the tips mentioned above to secure the best deal and avoid excessive interest costs.
Need a personal loan? Compare the best offers now and apply online in minutes! 🚀