When deciding whether or not to grant applicants for personal loans, lenders take a number of criteria into consideration. The most important of these are the applicants’ credit scores, monthly salaries, job profiles, and employer profiles. Lenders have also been forced to take into consideration these criteria in order to determine the interest rates that would apply to applicants for Navi personal loan as the use of risk-based pricing has become more widespread.
So here we are going to provide you some tips to get personal loans at reduced interest rates.
Keep your credit score strong
When considering applicants for Navi personal loan, lenders often look at their applicants’ credit scores as one of the first criteria to consider. People with credit scores of 750 or higher often have better odds of having their loan application accepted. These customers are believed to have a higher level of financial discipline, and as a result, they pose a lesser risk of default for the lenders. The application of risk-based pricing has also prompted many financial institutions to provide applicants for personal loans with higher credit scores with more favourable interest rate options. Those with low credit scores are more likely to be denied credit or to have their interest rates increased to compensate the lender for the increased risk associated with lending to them.
Therefore, if you want to increase your eligibility after checking Navi personal loan emi calculator, and boost chances of obtaining reduced interest rates, then you should make it a priority to build and keep a solid credit score. For this reason, it is important to follow sound credit practises such as making on-time payments of EMIs and credit card bills; limiting credit utilisation ratio to within 30 percent of available credit; monitoring loan accounts that you have guaranteed or co-signed for; avoiding making multiple applications for loans or credit cards within a short period of time; and keeping a healthy credit mix in order to construct and keep a high credit score.
Just like you get in the habit of checking your credit report at regular intervals, preferably at least once every three months, ensure to check Navi personal loan emi calculator to know your expected EMI.
Also, checking your credit report will give you enough time to make any necessary steps to improve your credit score, which will result in a higher score.
Make inquiries with the financial institutions with which you already have a customer relation
Many of the numerous lenders who provide personal loans and facility of Navi personal loan emi calculator have a practise of providing personal loans to their existing customers at interest rates that are more favourable than those offered to new customers. These banking partnerships can take several forms, such as checking, savings, salary, or fixed/recurring deposit accounts, as well as pre-existing loans or credit cards. Those who are interested in obtaining a personal loan should begin their search by making first contact with the financial institutions (banks and/or NBFCs) with which they already have a working banking and/or lending relationship. The interest rates that they provide, in addition to any other loan characteristics that they provide, can then be used as a benchmark to evaluate the interest rates that other lenders provide for personal loans.
Prior to filing Navi personal loan application, you should check other loan offers
There are a large number of banks and NBFCs that provide personal loans and the online tool of Navi personal loan emi calculator; thus, the interest rates that they charge tend to fluctuate significantly within the range of ten to twenty-four percent per annum. Because the procedure for evaluating credit and the level of risk appetite of lenders can be quite different from one another, the odds of getting approved for a personal loan and the interest rates that are charged for the loan will also be quite different from one lender to the next. Those who are considering getting a personal loan should, as a result, compare the terms of various personal loan offers made by as many different lenders as they can find before settling on one particular lender.
When applying for your Navi personal loan, it is important to ensure that you do not do these two following financial blunders:
Failure to select the appropriate loan tenure
When deciding whether or not to grant applicants personal loans, lenders look at applicants’ ability to repay the loans. The applicant’s total monthly EMI obligations, including any newly incurred EMI, should preferably be around the level of within 50 percent of their net monthly income in order to meet the requirements for qualifying in this case.
Borrowers ought to choose a period for their personal loan that maintains their monthly obligations inside this range. It is important to keep in mind that loan applicants who already have commitments to repay the loan via EMI typically have a reduced likelihood of having their loan application accepted. Those who have bigger repayment obligations should select a longer payback period because doing so will reduce the EMI and improve both the borrower’s capacity to afford the EMI and their eligibility for the loan. So make sure to utilize Navi personal loan emi calculator to arrive at optimal EMI amount as per loan amount, tenure and interest rate.
Changing jobs on a consistent basisWhen determining whether or not an applicant is eligible for a personal loan, another factor that many lenders take into consideration is the applicant’s career history as well as their stability. Lenders may be cautious to lend money to candidates who regularly transfer professions since this behaviour may be regarded as an indication of career instability. Additionally, such individuals may be prevented from obtaining the best possible interest rates on Navi personal loan. Therefore, you should make every effort to limit the number of times you switch jobs, particularly if you are planning to apply for a personal loan within the next few months or so.