3 Clever Strategies to Get the Best Interest Rate on a Loan
Read this post to know how to get a lower interest rate on a loan.
Here are 3 secret tips to get a lower interest rate on a loan:
Secret Tip #1: Balance Transfer
Balance transfer on loans is a facility where a customer transfers their outstanding principal amount to another bank / lending institution. Most types of loans have a balance transfer facility including home loans, education loans, business loans and mortgage loans. Banks offer a better interest rate to new customers which means that you must go to a different bank than the bank you already have a relationship with (through another loan or bank account) if you want a better interest rate.
Secret Tip #2: Choose One of the Top Lending Institutions in the Category
Choose a lending institution that is one of the market leaders in the kind of loan you are looking for. This is because most banks focus on a specific set of loans and compete for them in the market. You will get an idea by looking at their online and offline ads. To give an example, a home loan from a company that only focuses on such loans will have better interest rate (i.e. lower) and better repayment terms (e.g. no prepayment clause).
Secret Tip #3: Negotiate
Negotiate with the bank at the time you apply for a loan. You may get a better interest rate if you have a healthy credit score and monthly income.
There you have it. 3 secret tips to get the best interest rate on loans.
Have you negotiated with a bank for interest rates?