As a borrower, you can get different Personal Loan interest rates in Delhi. Currently, Delhi ranks second on the list of the wealthiest cities in India. With an estimated GDP (Gross Domestic Product) of $293.6 billion, Delhi is one of the most economically important cities in India. It is also one of the most populous cities in India. The city is the political centre of India and is a favourable employment choice for migrants from all over the country. Delhi offers numerous opportunities to migrants from different cities and regions. With a constantly growing population in the capital, it is one of the prominent markets for lenders. As a borrower, you will find various lenders in the market offering low Personal Loan interest rates in Delhi. You can avail of a Personal Loan to tackle financial obligations or cater to various personal requirements such as higher education, weddings, travel, home renovation, debt consolidation, etc.
So, where to find low-interest Personal Loans in Delhi? Firstly, as a smart borrower, you must check all the information provided on the official website of the lender. Below are a few of the factors that you must consider finding low Personal Loan interest rates in Delhi:
- Credit score
To get a low Personal Loan interest rate in Delhi, you must have a good credit score. A borrower with more than a 750-credit score has a higher chance of getting a Personal Loan at a lower interest rate. There are various agencies that provide a credit score and generate a credit report such as Equifax, TransUnion CIBIL, Experian, and CRIF Highmark. Lenders do not entertain borrowers with lower credit scores. There are chances that a borrower with a lower credit score will get a loan at a high-interest rate as compared to a borrower with a high credit score.
- Income
To avail of a Personal Loan at a lower interest rate, you must meet the minimum criteria set by the lender. A borrower with a higher income has a higher chance of getting a loan at a lower interest rate. A borrower with a higher income is considered more capable of timely loan repayment. On the other hand, a borrower with a lower income might get a loan at a higher interest rate since the creditworthiness is lower.
- Debt to income ratio
The debt-to-income ratio shows how much an individual owes to how much he/she earns monthly. When the majority of an individual’s income is used for paying the debt, it leads to a higher debt-to-income ratio and the individual is likely to avail of a loan at a higher interest rate. Similarly, when an individual has a lower debt-to-income ratio, he/she can avail of a loan at a low-interest rate. You can calculate your DTI (debt to income) ratio by using the below formula:
DTI ratio = Total monthly debt payments/Gross monthly income X 100
- Credit history
Credit history shows how an individual manages his/her repayment of debts such as loans and credit cards. Credit history is a part of a detailed credit report which reflects your borrowing and repayment behaviour over a considerable period. A good credit history will help you avail of loan amounts at a lower interest rate as compared to an individual who does not have a good credit history. If an individual has defaulted in the last 12 months, there are chances that a lender will offer him a higher interest rate or even reject his/her application.
- Meeting the eligibility criteria
To avail of a loan at a lower interest rate, a borrower must check the Personal Loan amount eligibility. There are different lenders in the market with different eligibility criteria. As a borrower, you must check all the eligibility criteria on the lender’s official website to avail of loan disbursals faster. Following are the eligibility criteria that you must meet – the age of the borrower must be between 24 and 58 years, a minimum experience of 24 months is required along with a monthly income of at least ₹40,000. Lastly, he/she should have a credit score of more than 750.
To conclude
Along with the above mentioned factors, your relationship with the lender and your employer’s reputation plays an important role in availing of a loan at a lower interest rate. A borrower should keep all these factors in mind before availing of a Personal Loan. Also, you must check your Personal Loan amount eligibility to avail your desired loan amount with a lower interest rate. Borrowers prefer Personal Loans over other loans due to their various attractive features such as minimal documentation, no collateral requirement, quick disbursal, no end usage restrictions, quick approval, etc.
