Cheapest Personal Loan: If you want a cheap loan then these 5 tips will come in handy..

Everyone needs a loan. In such a situation, whenever someone goes to take a loan, his first effort is to keep the interest rate as low as possible. However, if you want a loan at a low interest rate, then you will have to prepare for it well in advance. Let us know some great tips to get a personal loan at a low interest rate, which will prove to be very useful for you. It is possible that you can get a loan at a very cheap rate.

1- Good credit score
If you want a loan at a cheap rate, then the most important thing is that you maintain a good credit score. The better your credit score, the better rate you can get a loan. A good credit score means that you pay your bills on time and do not default. In such a situation, the bank also trusts that you will repay their money.

2- Compare many banks
If you need a small loan, then you can take it without comparing, because it takes a lot of time. But if you are taking a slightly bigger loan, then you should first compare some banks. While comparing, do not just look at the interest rate, but also look at other hidden charges. Keep in mind how much processing fee the bank is charging, whether the interest rate is fixed or on reducing balance, or whether any other charge is being levied.

3- Negotiate with banks
When you are comparing loans from all the banks, at that time you can negotiate with the banks regarding the interest rate. Do not hesitate at all while negotiating with the bank. It is possible that by negotiating you get a loan at a better rate.

4- Choose the right loan
If you are taking a personal loan, then you have to be careful about taking the right type of loan. Under secured loans, the interest rates are lower than unsecured. That is, if possible, you should take a secured loan so that you can get a loan at a lower interest rate. Let us tell you that you can take a secured loan against your FD, mutual fund, or any other investment.

5- Keep in mind the loan tenure
Often when you take a loan from a bank, you will see that you are offered a lower interest rate if you make EMI for more days. Here you have to understand one thing a low interest rate does not mean that you are paying less interest. This is because you pay interest at a lower rate for more days, not less interest. So try to keep the loan tenure as short as possible according to your affordability, so that it is easy to repay the loan and extra money does not go out of your pocket.