By TheLowInterest 25 Sep, 2025

How to Get the Lowest Interest Rate on Your Personal Loan

If you are about to borrow, availing the cheapest interest rate on a personal loan must be your prime concern. The interest rate you obtain will have a direct influence on your monthly EMI and the overall cost of the loan. By adopting the correct strategies, you can avail the best personal loan rates and minimise your financial burden.

1. Have a Good Credit Score

Your credit score is among the most critical aspects of securing the best personal loan interest rate. A reading above 750 puts you in a good position to secure approval at good rates.

Make timely payments on bills

Don't overuse credit cards

Don't apply for lots of loans

2. Shop Around for Lenders Before Applying

Not all financiers have the same rates. Always compare banks, NBFCs, and fintech lenders to identify who offers the lowest interest rate on personal loans. Do an online comparison for a clearer view.

3. Choose a Shorter Loan Tenure

A shorter tenure may raise your EMI, but it saves you on the total interest paid. Lenders give borrowers lower rates of interest if they opt for shorter tenures.

4. Think About a Secured Personal Loan

If you can offer security (such as property, gold, or fixed deposits), lenders are likely to give you a lower personal loan interest rate than in the case of unsecured loans.

5. Emphasise Income Stability

A stable income and well-established job profile enhance your reputation. Borrowers who are employed with well-known companies tend to get access to the lowest personal loan rates.

6. Look for Pre-Approved Offers

Banks typically provide pre-approved personal loans to existing customers with good credit history. Pre-approved personal loan offers typically come with quicker disbursals and the lowest possible personal loan interest rates.

7. Negotiate with Your Lender

If you are already a customer of the bank, do not hold back. You might get the best personal loan interest rate because of loyalty.

Conclusion

With these procedures, you are assured of getting the lowest personal loan interest rate and lowering your repayment load.