Coimbatore is known as the textile capital of South India due to the presence of several textile mills in that area. These textile mills are the most significant source of employment in this district. Other industries that can be found in Coimbatore are manufacturers of equipment required in textile mills, automobile industry and the like. Apart from that, agriculture is also credited as a main source of employment in Coimbatore.
Consequently, this district enjoys a high employment rate thanks to the various means of occupations offered. According to the latest census data, the unemployment rate of this district is only 3.7%. Since the employment rate is significantly high; the chances of availing instant personal loan in Coimbatore are also favourable.
There are several advantages of availing a personal loan. Since they have no end-use restriction, they can be used to finance a vast array of requirements like wedding, education expenses, and debt consolidation. Furthermore, applying for an instant personal loan is easy since a borrower doesn’t have to declare any collateral.
Nevertheless, since personal loans are unsecured loans, the applicable interest rates often stay higher than other advances like mortgage loans and home loans. In spite of all the benefits, high interest rates of these loans can be financially draining for borrowers.
Hence, one should know the following ways to gain an idea on how to get the best interest rates on personal loan in Coimbatore to avoid financial strain during repayment.
1. Healthy CIBIL score – A CIBIL score is a measure of an individual’s creditworthiness. Accordingly, a healthy CIBIL score above 750 creates a positive impact on the lender and assures them that the borrower is unlikely to default on the loan.
A healthy CIBIL score will also allow you to negotiate with the lenders to disburse a personal loan at an attractive interest rate. Aside from the reduced interest rate, a high CIBIL score is likely to accelerate the loan approval process and disburse the amount quickly.
It is essential that you maintain a satisfactory CIBIL score as it one of the most important personal loan eligibility criteria. Maintaining a good repayment history, zero defaults on previous credits, and complete bill payment will improve the CIBIL score over time.
2. Compare between rates offered by different lenders –Borrowers should carefully compare the rate of interest offered by different lenders before selecting a particular financial institution. Furthermore, try to apply for personal loans at times when financial institutions launch various schemes as incentives. You can get credits at a reduced rate of interest under such schemes.
3. Satisfactory employment history – Employees who stay employed with an organisation for more than one year are more likely to get a lower interest rate. Apart from keeping a steady job, maintaining a 40%-50% Fixed Obligation to Income Ratio (FOIR) is also crucial to get a personal loan in Coimbatore at a lower interest rate.
4. Apply with a co-applicant – when you apply for a personal loan along with another applicant, chances are you will be approved for a personal loan with a reduced interest rate. It is because, when you apply with a co-signer, the risk associated with lending reduces. In these situations, loan applications also get approved quickly.
Before availing a loan at a reduced rate of interest, you can use a personal loan calculator to check how much interest payment you will be making as part of your EMI. It will help you to manage your finances accordingly.
Most financial institutions and NBFCs offer such online tools. NBFCs like Bajaj Finserv bring pre-approved offers that make the process of availing such loans easier and time-saving. Apart from personal loans, these offers are also available on home loans, business loans and other financial products. You can check your pre-approved offer by providing some necessary information such as your name and contact number.
Personal loan eligibility criteria
Other than the above mentioned methods, a prospective customer also has to meet the minimum eligibility criteria to get the best interest rate in Coimbatore. You should know about the eligibility criteria that you are required to meet before applying for a personal loan; these are the following –
- You should be a resident of India between 23 to 55 years of age.
2. You should be a salaried employee working in the public or private sector or in an MNC.
3. You should be a residing citizen of India
You should present the following documents
1. Salary slips of the last two months.
2. Bank account statement for the previous three months.
3. KYC documents such as PAN, Aadhaar, voter ID card, passport and the like.
Following the above mentioned methods will allow you to secure the best interest rate against a personal loan in Coimbatore. Going through the pointers before availing a personal loan will help you meet your unique financing needs.