Loans are very important, and you will have to apply for a loan at some point in your life. However, even if you have not availed a loan ever before, you will still know that you need low personal loan interest rates. However, you should know that personal loan rates are not the only thing that matters in loans, but they are one of the most important. Everyone wants lower interest rates, but how can you avail loan at a lower rate? Let’s find out.

Factors affecting personal loan rates

There are a lot of factors that affect the rate of interest for loans but some affect it directly while others affect it indirectly. Furthermore, not all factors affect the rate of interest in the same manner as the degree to which the interest rate can be affected varies. So, here are the factors that affect the personal loan rates:

  • Your salary
  • Your credit score and credit history
  • EMI of loan
  • Tenure of the loan
  • The nature and type of your employment
  • Your assets and liabilities
  • Your financial statement

You need to ensure that the above-mentioned aspects of a loan are properly managed. Your financial statement, salary, and assets & liabilities should be sufficient to convenience the lender that you can afford the loan. Additionally, you must ensure that you have an impeccable credit history and credit score to ensure low interest rate. However, you should focus on the EMI of loan and tenure of the loan, as these two aspects affect the interest rate of a loan directly. If you were to have a shorter tenure then the value of each EMI will be high but you may end up paying at a lower interest rate. Therefore, it is crucial to determine the perfect balance of tenure and EMI for low interest rates.



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When you are applying for a loan, you should try and avoid banks, even though many people may advise you to go to a bank. The reason that you should avoid a bank is because of time consumption and tedious regulations involved in loan application process of banks. However, with an instant personal loan app like PaySense, you exactly know about the factors that will affect the personal loan interest rates. Moreover, you can use the online calculator to find out the perfect tenure and EMI of loan based on your needs.