The Rate Riddle: 5 Secrets to Unlocking a Better Personal Loan Deal

Borrowers sometimes ask if they can alter the interest rate on personal loans. Switching between fixed and floating is possible, but a number of factors determine the interest rate itself. Credit Score makes a big difference, as an increased score can result in decreased rates. Income and Employment History affect rates too, with stable employment and income lowering risk for lenders. Loan Amount and Tenure have an impact on rates, with greater amounts and longer tenures tending to lead to higher rates. Debt-to-Income Ratio is also a factor, with lower ratios reflecting healthier finances. Finally, Market Conditions and Lender Policies may also have an impact on rates, with economic trends and lender standards determining the ultimate rate charged. Borrowers can negotiate or do balance transfers to obtain better terms.

 

Source: Financial Express