A personal loan is a convenient way to meet your fund requirements for various purposes starting from a business launch, childrenâ€™s education, expenses for a family function, etc. Avoid borrowing from family or friends and avail of a personal loan from Hero Fincorp without any mortgage or collateral. However, the risk of non-repayment is high in this type of loan, so the lender fixes the interest rates quite high to stay safe. Read on to know how you can reduce the Hero Fincorp personal loan rate of interest.
The factors influencing the interest rate include the following:
Â·Â Â Â Â Â Â Â Â Your income
It is the main influencer of a personal loan interest rate. The lender considers people with high income as more capable of repayment. So, a high and stable income on your part may lead to a lower interest rate. For low-income levels, the interest rate may rise.
Â·Â Â Â Â Â Â Â Â The credit score
Your credit score is an important factor for approval of the loan and also the interest rate. The score reflects your repayment history, defaults, etc. If it is high, you can get a loan at low-interest rate whereas for a low score, the interest rate would be high.
Â·Â Â Â Â Â Â Â Â The Debt-to-income ratio
The debt-to-income ratio is basically what you get by dividing the sum of your debt payments by your total income. The lender would check this ratio to see whether the maximum amount of your salary is getting bifurcated towards paying off your debts. The higher the ratio, the higher is the chance of the lender imposing a high-interest rate on your loan.
Â·Â Â Â Â Â Â Â Â Past relation with the lender
If you had been a previous client of the lender and he considers you trustworthy, he may charge a low rate of interest rate on your loan. But this relationship may take a long to get concrete.
Â·Â Â Â Â Â Â Â Â Doctors
For those of you who are in the medical profession, you may get a low Hero Fincorp personal loan rate of interest, as there may be loans specially designed for doctors. Go through the eligibility criteria and if you qualify, you can save a good amount on the interest payments.
Â·Â Â Â Â Â Â Â Â Discounts
Visit the lenderâ€™s online portal to see if there are seasonal or special discounts on personal loans. The lender may offer some discounts from time to time and you can avail of them. Also, the online loan application is more convenient. You can transact the entire process from home.
Â·Â Â Â Â Â Â Â Â Repayment period
If you pay off the loan within a short duration, you may get a lower rate of interest. A longer repayment period increases the lenderâ€™s risk of non-recovery, so the interest also goes up.
While applying for a personal loan, you will find certain factors affecting the Hero Fincorp personal loan rate of interest. Knowing about these factors would help you to avail of a lower interest rate. These are basically the lenderâ€™s methods to minimise the risk of non-repayment by the borrowers.
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Hero FinCorp Limited
09, Basant Lok, Vasant Vihar, New Delhi â€“ 110057
Email Id: Corporate.Care@HeroFinCorp.com
Website – https://www.herofincorp.com/
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