Where can I get the cheapest personal loan? In this guide, we’ll explore 2 strategies to secure a loan with a low interest rate, typically 10% to 25% annually. Remember, the eligibility criteria will determine the specific rate you qualify for.
Traditionally, banks offer the most competitive rates on personal loans. However, they typically require documented proof of income.
On the other hand, loan apps provide a convenient alternative. While they might offer faster approvals, their interest rates tend to be higher.
Cheapest Personal Loan
| cheapest personal loan | 10% to 25% annual interest |
| Processing Fee | 1% to 5% |
| Type of loan | Personal Loan, Line of Credit |
| Guarantee | may have to be given |
| who is it for | It is for everyone |
| where can I get it from | Loan from a bank loan or loan app |
Where to get the cheapest personal loan (Cheap loan details)
Let’s explore how to get a personal loan with favorable terms before you apply. Financial institutions carefully assess your creditworthiness to determine your ability to repay the loan. This includes your income and credit history (including on-time payments for past loans).
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A strong credit profile can significantly improve your chances of getting approved for a loan with a low interest rate.
Ways to get the cheapest personal loan
One of the best ways to secure an affordable personal loan is through a bank. Banks typically offer personal loans with annual interest rates ranging from 10% to 15%. To qualify for a lower interest rate, it’s crucial to have a stable and reliable source of income. For instance, if you are employed in a government job, you are more likely to obtain a loan at a favorable rate.
Recommended Banks for Personal Loans
Here are some banks known for offering competitive rates on personal loans, provided you meet their eligibility criteria:
- Axis Bank
- HDFC Bank
- SBI Bank
- Canara Bank
- IndusInd Bank
A cheap loan from a loan app
you’re looking for a cheap personal loan, loan apps offer a convenient solution. These apps allow you to get loans with minimal documentation, though the interest rate starts at 24% annually. This option is ideal for individuals who lack the necessary documents or can’t provide proof of income, such as a salary slip or bank statement.
Here are some of the best loan apps that offer affordable personal loans, which you can apply for from the comfort of your home:
- Kreditbee Loan App (Kreditbee)
- Smartcoin Loan App (Olyv)
- Paytm Loan App (Paytm)
- Fibe Loan App (Fibe)
- Branch Loan App (Branch)
In addition to these apps, if you have collateral such as a fixed deposit or gold, you can easily secure a loan against it from a bank or a private institution. These are some of the ways to obtain an affordable loan with minimal hassle.
Eligibility for the Cheapest Personal Loan
To qualify for the cheapest personal loan, the following eligibility criteria are important:
- High Credit Score: Your credit score should be 750 or above. A high credit score can help you secure a loan at a lower interest rate.
- Stable Income Source: You must have a stable and sufficient income source to ensure timely EMI payments. Both salaried and self-employed individuals are eligible.
- Low Existing Debt: Having little or no existing debt increases the lender’s confidence in your ability to repay the new loan.
- Good Loan Payment History: A good payment history on previous loans demonstrates your reliability in making timely payments.
- Required Documents: You must submit essential documents such as identity proof, address proof, income proof, and bank statements.
- Age: Applicants should be between 21 to 60 years old.
- Aadhaar Linked Mobile: A mobile number linked to your Aadhaar is necessary as the Aadhaar OTP is required to sign the loan agreement online.
Required Documents for the Cheapest Personal Loan
To avail of a personal loan, the following documents are necessary:
- Identity Proof: Aadhaar Card, PAN Card, Passport, Driving License, or Voter ID Card.
- Proof of Address: Electricity bill, water bill, telephone bill, gas connection bill, passport, ration card, or bank statement.
- Income Proof: Salaried applicants need salary slips for the last three months; self-employed applicants need bank statements for the last six months. Income Tax Return (ITR) may also be required.
- Bank Account Details: Bank passbook or canceled cheque.
- Photograph: Recent passport-size photo.
How to Get the Cheapest Personal Loan (Cheap Loan Application)
Steps to Get the Cheapest Loan from a Loan App
If you’re looking to secure the most affordable loan online through a loan app, follow these steps:
- Select a Loan App: Choose the right loan app that meets your needs and offers the best features.
- Download the App: Download and install the selected loan app on your smartphone.
- Register: Enter the required details like your name, mobile number, and email to create an account on the app.
- Complete KYC Process: Upload your identity proof (such as an Aadhaar Card, or PAN Card) and address proof (such as an electricity bill or ration card).
- Provide Income Proof: Upload necessary documents like your salary slip and bank statement to verify your income.
- Fill in Loan Details: Enter the loan amount, tenure, and any other required information.
- Eligibility Check: The app will assess your eligibility and approve the loan after a short review period.
- Accept the Loan Offer: Once approved, read the loan offer carefully and accept it by agreeing to the terms.
- Agree to Terms and Conditions: Confirm your acceptance of all terms and conditions, then submit your application.
- Loan Disbursal: Upon approval, the loan amount will be transferred to your bank account.
This process is quick and straightforward, allowing you to easily secure a loan online.