Every parent prefers a high-quality higher education for their children, and an instant loan for students is one of the ways to make this possible. While attending a good, reputed college does have its perks in the long run, it usually involves a high cost which might be out of reach of some parents. In such a situation, a financial solution like a low-interest personal loan can prove to be a savior. However, getting this loan is easier said than done, and being aware of the requisites can save you plenty of time and mental stress.
Students have several options when it comes to applying for a personal loan. One of them is the NBFC personal loan. They can also use the personal loan EMI calculator to check the amount they need to pay every month. But, a factor that can truly impact the eligibility and the EMI is the rate of interest that the lenders charge. The lower the interest rate, the easier it is for the students and their parents to pay it back.
To help you figure out how you can get lower interest rates on the instant loan for students, discussed as follows are factors that impact this component –
A good credit score – One of the surest ways of convincing lenders to grant you a lower interest rate entails maintaining a credit score of 750 and above. The higher the credit score, the better it is for you. In addition to ensuring swift approval, this factor also has a bearing on the rate of interest.
The ratio of debt against income – Usually, lenders take stock of your existing debt and compare it with your current income. It gives them an idea of whether you will be in a position to pay back the loan within the specified period. So, a lower debt would work in your favor, while a debt that takes up a sizeable portion of your income will cause the rate of interest to spike.
Getting a co-signer – Anyone with good credit standing can act as a co-signer while applying for an NBFC personal loan and drastically lower the rate of interest. It could be the parents or grandparents of the student or a relative with an exemplary financial record. Getting a co-signer improves the applicant’s credibility and causes the rate of interest to dip.
Search for a discount – When it comes to students, lenders offer discount schemes under certain conditions. It could be automatic payments, your grades in college, or loyalty. Discounts on the interest rate are given when the student meets the criteria and qualifies for the scheme.
Comparison shopping – The rate of interest offered on an instant loan for students may vary from one lender to another. Under the circumstances, applicants can resort to comparison shopping wherein they prepare a chart with the rate of interest offered by various lenders. By weighing them against each other, it is easier for students to identify the one which works best for them.
Opt for a shorter tenure – When you opt for a shorter repayment period for your NBFC personal loan, the EMI shoots up. At the same time, the rate of interest falls. So, in the long term, you will save money by completing repayment sooner and not having to pay any interest subsequently.
Before approaching the lender to request a lower interest rate, you must use the personal loan EMI calculator and work out the monthly payment. Also, check the eligibility criteria for low-interest rates and figure out whether you qualify for this provision. Last but not the least, discuss the situation with your lender and seek guidance as to how you can get an instant loan for students at low-interest rates. Given their experience, lenders can recommend viable solutions to help you tide over the situation with ease.