Personal Loan

Complete Guide On How To Apply For Personal Loan At Zero Interest Rate


Personal loans are useful financial resources for unexpected expenses. They can assist in getting out of a financial slump or paying significant bills. People can apply for personal loans and use them to pay for expenses like weddings, house renovation, expensive trips, and even automobile maintenance that are not covered by other sorts of loans. But what is a personal loan? How to apply for a personal loan?

Personal loans are loans without security. It indicates that they don’t need any kind of asset-based security. However, compared to secured loans, this also leads to slightly higher interest rates. There are ways in which you can apply for a personal loan at lower interest rates. This may not be zero interest personal loan. But you can surely find them affordable.

Having a good score

You must pay all of your bills and debts on time if you want to have a decent credit score. You have a far better chance when you apply for a personal loan if your credit score is 750 or above. You may not get 0 interest personal loan but indeed at a lower rate.

All you need to do to apply personal loan are: 

  • keep your credit usage low (about 30%), 
  • avoid taking out credit cards and direct loans, 
  • keep an eye on your credit report
  • and maintain a healthy balance of secured and unsecured loans.

Ensure prompt repayment of your co-signed loan account as well. Missed or late payments may have an impact on both your credit score and the credit score of the principal borrower.

Have a good repayment history

Try to pay off any credit card debt you may have. You should pay off your bills each month. Also, ensure you do not delay making the EMI payments if you have any other outstanding loans.

This will ensure that you apply for a Personal Loan with the best terms in the future. Your lenders will have confidence in you as a result of your solid repayment record. Additionally, it will assist you in negotiating interest rates with the lender.

Keep an eye on offers

Explore internet banking platforms. Here you can evaluate different lending institutions’ personal loan interest rates. These are based on your eligibility and requirements. Also, pay attention to your current lender.

Since you have been on good terms with them, they primarily provide Personal Loans with helpful service and interest rates. These come at completely cheaper rates. Plus, keep an eye on interest rates around the holidays because well-known banks frequently offer tempting offers when you plan to apply for personal loans. But, be prepared to pay a higher interest rate when you apply for a personal loan from multiple lenders at once. This is because it gives the lender the appearance that you are a borrower in need of money.

Check Employment History

You’ll need a strong credit score in order to apply personal loan interest rate.

You must have job stability and a great FOIR (Fixed Obligation to Income Ratio) to have a good credit score. The financial institution requests a few Personal Loan paperwork before making the loan. Your salary slip, which is a representation of your employment history, is one such crucial document.

It’s necessary to have a minimum of two years of work experience, including at least one year with the present employer. Banks prefer to lend money to those who work for the PSU, local, state, federal, or quasi-government sectors. The interest rate when you apply personal loan is heavily influenced by your credit standing and professional standing.

How Credible is the Employer

The likelihood that you will receive the most advantageous Personal Loan deals increases if you are currently employed by an MNC or other reputable business. The answer is straightforward: such an employer is more likely than other firms to be able to offer you a stable job.

Working for such a business will offer your lender the idea that you have a reliable source of income and can make your EMI payments on time.

How to Apply for a Personal Loan

The procedure to apply personal loan is simple. However, having the loan application approved may be more difficult. You would have to provide certain documents by the bank’s protocol, such as: 

  • evidence of employment or income,
  • recent pay stubs, 
  • the KYC (know your customer) documentation,  etc.

After completing the necessary paperwork, the applicant’s credit history is checked to determine their CIBIL score and credit history. This aids banks in determining your ability to repay the loan and allows them to ascertain how many loans you currently have open.

The eligibility requirements to apply for personal loans are not particularly high. But, the banks are quite worried about the borrower’s ability to repay the loan. Additionally, personal loans have a minimum income requirement. Most banks have a minimum monthly income requirement of Rs. 12,000 for personal loans in semi-urban areas. It is about Rs. 15,000 in larger cities like Delhi and Mumbai.

The reason for these “restrictions” is that giving a loan without any kind of collateral raises the risk for banks. One method banks may make sure that the payback will be done on time is by establishing eligibility requirements. In actuality, borrowers who have a solid credit history and a respectable CIBIL score frequently receive personal loans with low-interest rates.


The loan is approved if the bank is satisfied with your credit history and financial standing when you apply for a personal loan. In the case of a bad credit history, a personal loan can also be rejected. Even though applicants with a poor credit history still have a chance of approval, you may have a high-interest rate.

The lender won’t have any trouble accepting you for a low-interest personal loan if you can show that you can repay the amount. You can visit Piramal Finance to submit an application now that you are aware of how to get a low-interest personal loan.