Personal Loan interest rates can vary from one lender to another. Such variations depend on a number of factors such as the lender's appetite for risk, the borrowers incoem and credit profile and of course the prevailing cost of funds in the economy.
In a situation where interest rates are going up as a result of inflationary pressures, is is very important for borrowers to scan the market and apply for a loan that is not only the fastest but also the most affordable. While shopping around for interest rates, do take care to see to it that the credit bureau is pinged multiple times as this may adversely affect your CIBIL score.
There are two types of inquiries: hard and soft
Soft Inquiries: Checking your credit reports or monthly account reviews from your present lenders are all examples of "soft" inquiries. Credit scores are not affected by soft queries. By reviewing your credit reports on a regular basis, you'll be able to keep an eye on your credit accounts, identify faulty or missing information and spot unusual activity that could indicate identity theft.
Hard Inquiries: When organisations or people, such as a lender, analyse your credit report as a result of your application for credit, such as a new loan, credit card, this is known as a "hard" inquiry. Hard inquiries can impact your credit score.
As one can see, it is better to have soft inquiries on the CIBIL report rather than hard ones while scouting the market for the best interest rates.
To understand the lowest personal loan interest rates in India in 2022, please go through the link given.
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