1. Gage Collateral: This is a guaranteed way of availing
a low-interest personal loan. It is because when you gage collateral, you
reduce the risk for the lender. If you default, then the lender can auction
your collateral, and retrieve back their money. And if you don’t default, then
the lender makes a safe profit. So, it’s a win-win situation for him. So, he
can give you a low-interest personal loan.
2. Short tenure: Since interest on a loan is directly
proportional to time, availing a short tenure loan will help you pay less interest
in total. So, while availing the loan, choose a shorter tenure to repay your
loan, if you want to truly avail a low-interest personal loan.
3. Large EMI: This is another hack to pay less in
total interest. You already know that loans are time constraint products. So,
when you pay larger EMIs, you’re actually paying off the loan early. This, by
default, will reduce your total interest payable. Also, if you’re finding it
difficult to manage other expenditure upon choosing a larger EMI then choose a
moderate one.
4. Weekly payment: When it comes to exploiting the time
feature of the loan, then why not exploit to the maximum? Talk to your lender
if they can let you pay your loan EMI weekly. If they agree, then you’ll pay
even less in total interest payable.
5. Rounding-off EMI: Rounding-off EMI is being practised
by many borrowers. When you round-off the EMIs, you don’t find it hard to pay
little extra but this little extra help you save one whole EMI, meaning paying less
in total interest payable.
6. Auto-redeem discounts: Some lenders offer discounts if you
let them redeem EMI from your account on the due date. This saves time for you,
and make you save more money on the total interest payable.
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