How to Get the Lowest Personal Loan Interest Rates in India

Personal loans are a popular choice for quick financial help—whether it's for a wedding, medical emergency, or travel. But one of the biggest concerns for any borrower is the interest rate. Even a small difference in the rate can lead to big savings.

In this blog, we’ll walk you through how to get the lowest personal loan interest rates in India, so you can borrow smartly and repay easily.

1. Maintain a High Credit Score

Your credit score is one of the first things lenders check. It shows how well you've handled credit in the past.

• A score of 750 or above is considered excellent.

• Pay EMIs and credit card bills on time.

• Keep your credit usage under 30% of your limit.

The better your score, the lower your personal loan interest rate.

2. Compare Offers from Different Lenders

Don’t settle for the first loan offer you receive. Different banks and NBFCs offer different rates based on your profile.

• Use online comparison tools like Fundcera to check multiple offers in minutes.

• Look beyond just interest rates—check processing fees, prepayment charges, etc.

A little research can save you a lot in the long run.

3. Choose the Right Loan Tenure

A longer tenure reduces your monthly EMI but might increase the total interest paid.

• If you can manage slightly higher EMIs, choose a shorter tenure.

• This usually results in a lower overall interest outflow.

Right tenure = less burden + better interest savings.

4. Show All Your Income Sources

Many people only mention their salary or main business income. But if you have rental income, freelance work, or any side income, include that too.

• A higher income improves your loan eligibility.

• Lenders may offer you better interest rates if they see more income and fewer liabilities.

5. Maintain a Low Debt-to-Income Ratio

Your debt-to-income ratio is the percentage of your income that goes toward paying existing loans.

• Keep this ratio below 40%.

• Avoid taking multiple loans at the same time.

A low ratio tells lenders you're financially stable, which can help reduce your interest rate.

6. Check for Special Offers or Pre-Approved Loans

If you're an existing customer of a bank or NBFC, you may already be eligible for:

• Pre-approved loans at attractive rates

• Special festive offers or limited-time discounts

Always check with your existing bank or use platforms like Fundcera to find such deals.

7. Consider a Co-Applicant

If your credit score or income is low, applying with a co-applicant (like a spouse or parent with good credit) can help:

• Increase loan approval chances

• Reduce interest rates due to shared repayment responsibility

Final Thoughts

Getting the lowest personal loan interest rates in India is not just about applying to multiple lenders. It’s about understanding your financial profile, improving your creditworthiness, and making smart choices before you apply.

At Fundcera, we make this process easy by matching you with lenders that offer the best personal loan interest rates based on your profile—with zero hassle and quick approval.