The post-pandemic new interest rates in India have been a relief to borrowers in India. The new structure of interest rates for different personal loans has been decreased in a great manner. Due to the post-pandemic financial crisis, and repo rates slashed had impacted the rate of interest in various personal loans, as it has been decreased. This is good news for the individuals that are looking out for a personal loan at a low rate of interest. Since the repo rate has been slashed, the banks and non-banking financial institutions are offering a better rate of interest to individuals. The new normal for India post-pandemic has been a bliss for the individuals in an emergency an instant needs to take an affordable personal loan. The country was severely impacted during the pandemic times where finances had gone down immensely. To make sure the country’s gross national product and economy rise, individual finance management became a vital point to notice. Therefore, the most popular loan product, personal loan, was made affordable for individuals to take and repay in a smooth manner. However, there was no compromise made in the terms of eligibility criteria to get a low rate of personal loan interest. Since the country is no more in the state of being in economic loss, an instant personal loan at a low rate of interest is only given to individuals who are eligible for it.

Eligibility criteria to get a low rate of interest post-pandemic

● First and foremost, a good credit score is one of the essential prerequisites to get an affordable post-pandemic interest rate on a personal loan. Without a good credit score, it becomes very difficult for a loan provider to offer a loan during such a financial crisis moment. Individuals with a good credit profile are only eligible to take a personal loan because a personal loan is unsecured and there is enough risk involved. Therefore, in order to get a personal loan at a low rate of interest during the post-pandemic time, individuals need to have a good credit score.

● The debt to income ratio should be low or a balanced one. It is important that you are not having multiple loans existing when you are looking out for a new personal loan. It is important to close up all the existing loans before you take a new one. The post-pandemic borrowing system works a little differently in terms of eligibility criteria to reduce the risk of default.

● Income plays a vital role when it comes to proving the eligibility criteria of an individual to get a low rate of interest in a personal loan. Individuals with high income are easily eligible to get the post-pandemic low-interest rate on a personal loan. However, for those without sufficient sources of funds, a personal loan is often denied.

● An individual that proves financial vulnerability with the help of a high credit utilization ratio, is often denied a personal loan post-pandemic. It is always important to keep a balance and not utilize the entire credit limit that is being offered.

Read More: Procedure to Follow While Closing a Loan

Wrapping up

In order to get a smooth personal loan apply process, one needs to make sure that they meet all the eligibility criteria imposed by the instant personal loan provider.