How to reduce Personal Loan interest liabilities?

Think about this: you are about to get married to your dream person. You wish to have a beautiful ceremony to celebrate. However, the worries of finances take you over. You consider using your savings and investments, compromising your long-term goals. You can still have your dream wedding without draining your financial resources. Visit the nearest bank branch or check the website and apply for a Personal Loan.

A Personal Loan is the most versatile financing option. It lets you borrow a massive amount which you can use to finance your wedding. You can get the lumpsum amount at a competitive interest rate for a tenure ranging anywhere from a few months to five years.  Check the interest liability when applying for a Personal Loan.

The lower the interest liability, the better as you can repay your Loan without feeling burdened. Here are ways to reduce your Personal Loan interest liability:

Go for the right Loan amount

Your interest rates depend on the Loan amount you borrow from the bank. A more significant Loan amount translates to a higher interest rate and vice-versa. Hence, get the Loan amount you truly need. This ensures your financial requirement is met without any hassles, and you do not incur unnecessary charges.

Scout for the lowest interest rates

Along with the Loan amount, your liability also depends on the applicable interest rates. A higher interest rate translates to a higher interest rate. Personal Loan interest rates vary between banks. Explore the market and compare various bank interest rates. Apply for a Loan with a bank offering the lowest Personal Loan interest rate. The Personal Loan EMI calculator is an incredible online tool that lets you compare various bank interest rates.

The EMI calculator also helps you plan your Loan repayment. Head to the Online Banking platforms to access the calculator free of charge.

Build a strong financial profile

Every Loan applicant has a different financial profile. Hence, the bank offers every applicant a Loan at a different interest rate. You should build a good financial profile to get a Loan at a competitive interest rate. This reduces your interest liabilities. A high monthly income, an excellent credit score, and a low income-to-debt ratio are key elements that strengthen your financial profile. Work on these elements.

Make partial pre-payments

Partial pre-payment means repaying a significant Loan amount before the due date. Partial pre-payments reduce your interest liability and help repay the Loan faster. If you have the financial resources at your disposal, consider making partial pre-payments. Download the Banking App to pay Loan EMIs and make other payments within minutes. You can also make a full pre-payment. However, the bank may charge a fee for the same.