What is The Role Of Personal Loan Interest Rates in Your EMI?

Whenever someone goes through any financial emergency and looks for ways to get the needed funds, a personal loan always comes to the rescue. Provided by almost all the leading lenders, this facility helps people in getting that pool of money to achieve their personal needs. The most important factor in the loan process is the interest rate offered by the lender from which you are taking the personal loan. In this article, we will tell you about what is the role of personal loan interest rates and how does it impact your EMI, so if you are someone who is going to opt for a personal loan, then this article would be a perfect read for you.

To know the impact of personal loan interest rates on your EMI, it’s important to know about the EMI. Well, known as the Equated Monthly Installments, this is the exact amount that you will be paying every month towards the repayment of the loan. And this EMI amount is made up of a part of the principal and a part of the interest amount. So, your interest rate would directly impact your monthly amount.

How to get Lower Personal Loan Interest Rates and why you should go for it?

A personal loan is a kind of unsecured loan which means that you don’t have to pledge any kind of security against it. One way to get lower personal interest rates from the lender is through the CIBIL score. As personal loans are unsecured loans, lenders try to cancel the risk while lending the loan amount by checking the credit score. So if you have a good repayment history and manage your debt in a disciplined way, you must have a good score (700 or above).

Lenders usually provide personal loan to individuals with a high CIBIL score at lower interest rates as they have a good repayment history. Another way is to get at lower interest rates is to have a good relationship with your lender. For example, if you are working in a reputed MNC or in a government company, the lender might give you the personal loan at lower interest rates because of your attachment with such reputed firms.

Also, if you have your salary account with the lender, it also may help you in getting a personal loan at lower interest rates. So you must these factors in your mind to get the best interest rates.

What is the role of Interest Rate in the Personal Loan EMI Calculator?

Do you know that you can have an estimate of your EMI before opting for a loan with the help of a personal loan EMI calculator? Well, if you didn’t know before, you certainly know it now. This EMI calcualtor gives you the exact EMI amount within a second when you feed the required details into it. These details are the required loan amount, personal loan interest rates, and required tenure. You must have known the importance of the interest rates in this calculation. That’s why it is always advised to go for a lender that gives you the lowest interest rates based on your overall profile.