How To Get Lower Interest On Credit Cards, Personal Loans And Home Loans

How To Get Lower Interest On Credit Cards, Personal Loans And Home Loans

Due to lower interest rates, loans are becoming less expensive day by day. Banks launched this contractile accumulator some time ago with a reduction in rates for savings and FD accounts and now extend this to loan rates.

GST, of course, is working on its magic on interest rates for different types of loans. Due to lower interest rates, loans are becoming less expensive day by day. Banks launched this contractile accumulator some time ago with a reduction in rates for savings and FD accounts and now extend this to loan rates. Recently, the decrease in the loan rate in RBI was 25 basis points.

Nevertheless, the main advantage of this reduction drive is provided only by new customers, and existing customers continue to use previously accepted high interest rates. Thus, the question that appears here is how existing customers can reduce their rates for credit cards, mortgage loans, and personal loans.

Credit cards

Interest rates on credit cards can be several times up to 40%. but there are ways to avoid this higher level – to negotiate with the bank

Try to talk with the bank and negotiate a lower rate with them, but the bank will agree only if your past deals with the bank were good, and if the banks perceive you as a good borrower. It is advisable that you go to the branch and send an official request in writing. It may take several weeks before you receive a response.
In case of an unexpected reply from the lender, you can also use a bank transfer and receive money transferred to another card where you have a lower interest rate, simply by filling out the documents and providing the details.

There are two types of means for transferring the balance that you can use –

I. Corrected the duration, ie, you receive a limited duration, say, 3-12 months to pay their contributions, and the other for life expectancy, as well as a lower interest rate from 0.80% to 9% pa.a.

II. The option of longevity, that is, you get all your life to pay your fees, but the interest is about 12-24% p.a. which is much higher than the one provided within the offer with a fixed duration and slightly lower than that provided by your previous credit card company.

However, you need to be careful with your credit card transactions, because transferring a balance can temporarily solve your problem, but caution with all of your transactions will help you in the long run.

Personal loans

Getting a lower interest rate for personal loans with a fixed rate is a task related to traffic, so you have two options: one goes to another lender, and the second – to obtain a loan by pledging an asset. The first option is to switch to another lender, but this is an expensive offer, since you will have to pay 2-5% of the outstanding loan amount as a prepayment.

Another option, more economical – is to take out a loan against an asset or pledge assets. However, there is no formula with a spicy shirt to determine which option is best for you, and varies from case to case.
Despite the fact that banks use every trick in the book to prevent the client from receiving a lower interest rate, however, if your creditor allows you to also try to increase the amount of EMI per month to reduce the duration of the loan.

Home Loans

In your quest to get a lower interest rate for home loan, the only thing that can help is your profitable deal. The same thing that was mentioned in the credit card section should be done first to negotiate and talk with your creditor, bargain with him to get a better interest rate on an existing mortgage loan. The lender can agree if you pay your EMI in a timely manner. However, if he refuses, you can look for another lender who is willing to give you a bet that is 100-150 basis points below your current bet. Even if the previous interest rate was 10.15%, and the new creditor offers you 9%, it will save you a considerable amount of money.

Usually, you get a better deal at the initial stages of the loan, that is, when you pay your fees for the interest component, and then when you return to the principal amount.

An important indicator for those who received a loan before March 2016 is that if you do not have a chance of switching, you are still at the base rate, so it’s better to switch to an interest rate based on MCLR or the marginal cost of funds which, due to its predetermined reset offer more real time. Anyone who received a loan after April 2016 is already in the MCLR.

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