From HDFC to ICICI, get the best rate from your bank for personal loan

A personal loan provides flexibility of usage — you may use the money thus obtained to meet medical expenses, fund a wedding, or whatever else you desire. Getting a personal loan is now easier than ever. Many banks offer pre-approved loans, and let you take them within a few seconds using net banking. Here are few ways to ensure you get the best deal on a personal loan.

• The interest on personal loans ranges from 10.99 per cent to as high as 30 per cent and the amount lent can range from Rs 25,000 to Rs 3.5 million
• Approach the bank or NBFC with which you have an existing relationship Lenders offer the best rates to existing client. Disbursement is faster, too
• Check your credit score before taking a personal loan. Then, enquire from banks or NBFCs the minimum credit score required for them to sanction a loan
• Don't apply for a loan if your score is lower than what a bank needs. Every time a lender runs a credit check on you, your credit score goes down by a notch. It also tells lenders that you are desperate for funds
• A few banks have started to offer cheaper rates to borrowers with a high score. If your score is above 800, look for such a lender.