Everyone needs a loan at some point or the other. Everyone needs it at some point or the other. Whenever we go to take any kind of loan, our first attempt is to keep the interest rate as low as possible. However, if you want a loan at a low interest rate, then you will have to prepare for it well in advance. Let us know 5 great tips to get a Personal Loan at a very low interest rate.

1- Maintain a good credit score
If you want a loan at a cheap rate, then the most important thing is that you maintain a good credit score. The better your credit score, the better rate you can get a loan. A good credit score means that you pay your bills on time and do not default. In such a situation, the bank also trusts that you will repay their money.

2- Compare many banks
If you need a small loan, then you can take it without comparing, because it takes a lot of time. But if you are taking a slightly bigger loan, then you should first compare some banks. While comparing, don't just look at the interest rate, but also look at other hidden charges. Keep in mind how much processing fee the bank is charging, whether the interest rate is fixed or on reducing balance, or if any other charge is being levied.

3- Negotiate with banks
When you are comparing loans from various banks, you can negotiate with the banks regarding the interest rate. Do not hesitate at all while negotiating with the bank. It is possible that by negotiating you may get a loan at a better rate.

4- Choose the right loan
If you are taking a personal loan, then you have to be careful that you take the right type of loan. Under secured loans, the interest rates are lower than unsecured. That is, if possible, you should take a secured loan so that you can get a loan at a lower interest rate. Let us tell you that you can take a secured loan on your FD, mutual fund or under any other investment.

5- Keep in mind the loan period
Often when you take a loan from a bank, you will see that you are offered a lower interest rate if you make EMI for more days. Here you have to understand one thing a lower interest rate does not mean that you are paying less interest. This is because you pay interest at a lower rate for more days, not less interest.