Personal Loan

Is Personal Loan Interest Rate Negotiable?


Personal loans are well-known to be one of the most effective fiscal tools available for usage in times of need. Personal loans are pretty flexible to meet the immediate cash crush, such as to pay off school fees and medical bills, marriage, medical emergency, expanding a business, etc. At the same time, the agility of personal loans has its quirk: the interest rate. Personal loans have higher rates than most other loans, making it harder to find better personal loan rates. While the personal loan rate of interest is not extremely high, lower rates are always better. In that context, let’s talk about if you can negotiate personal loan rates of interest with banks and, if so, how.

Can Personal Loan Interest Rates Be Negotiated?

Can we negotiate personal loan rates? Yes, you certainly can! When lenders and banks are afraid to get into talks because they would lose money, there is room to cut personal loan interest rates.

A personal loan is one of the most commonly asked loans. If you have positive ties with your bank, the bank may reduce the personal loan rates in several cases. Yet, the amount is reduced based on the applicant.

What Are Some Negotiation Tips?

While many of you are born with the ability to negotiate, the good news is that anybody can learn how to do so. Some methods you may follow to make your case look solid in front of banks or lenders & get personal loan rates lowered are listed below:

1. Be strong and confident

The most vital and basic thing you will need to have is confidence. Be confident when stating your needs and more when negotiating with them.

The bank does not need to simply agree to your terms or conditions and provide you with the desired interest rate. As a result, you will need to make a strong pitch to the lender or bank before they would even accept the terms. Make sure that you are both tough and fair while stating your demands while negotiating the personal loan rates.

2. Be Ready to Leave

Among the most vital parts of negotiating a personal loan rate of interest is to keep the choices open. If you are adamant about your needs and deem them non-negotiable, you should be ready to walk away and look for a loan from another bank or lender.

3. Study and Planning

Negotiations need a thorough study of the subject or item being negotiated. You might consider it as a debate in which you must respond to anything stated by the bank or lender about their needs. If you can persuade the bank that giving you the loan at your proposed interest rate would benefit them, then you may get the loan at reduced interest rates.

4. Specify Terms That are Helpful to All

Remember to be polite while seeking a reduced interest rate. Banks, like other firms and agencies, have monthly & annual targets to meet to continue in business. Interest on loans is a primary method for banks to meet their aims.

If you request a rate of interest very low for the lender to accept, your talks will surely fail. Also, banks have a minimal interest rate that they may offer to their users. To maximise your chances of loan approval, you should aim to come up with a figure that is equally useful for you and the bank.

5. Be Ready to Make Counteroffers

Negotiations begin with fair offers. You may attempt to make counteroffers if the lender or bank rejects your initially suggested personal loan rate of interest. Apart from the interest rate, personal loans include many costs. You may do a vast study on them to discover which ones the bank is willing to eliminate. Except for government-imposed costs such as registration costs, all other charges are negotiable.

What are Some Additional Ways to Help the Negotiations?

You may take your negotiation game ahead by following the points mentioned below:

1. Keep a good credit record

If the bank is willing to consider lowering its personal loan rates, it will think of doing so if you have a good credit score. Ensure that you have maintained a good credit score throughout to get a loan at a desired interest rate.

2. Have a perfect repayment record

A strong credit score is closely linked to a solid credit payback history. You can show them that you are a genuine candidate by paying your credit card bills and EMI on time and keeping your credit within the limit.

3. Should know ways of calculating interest

You should do your homework and discuss the interest rate that the lender will offer you. You may also utilise online personal loan calculators to determine the difference between the interest rates offered by various banks.


A personal loan is among the most common emergency funding choices. You may get a loan and spend the money as per your choice on legitimate things. As it’s an unsecured loan, personal loan interest rates are greater than other loan rates. With the growth of tech, it has become simpler to get a rapid personal loan. However, getting a low-rate personal loan remains tough. It’s because banks evaluate a variety of factors when selecting a lower rate of interest on a personal loan. Personal loans, in contrast to house and vehicle loans, where the security is the product directly, are unsecured. This might be useful if you don’t have any assets to commit to the bank.

Check the official website of Piramal Finance to understand personal loans in detail. You will find many informative blogs and articles which will help you understand the financing terms in a better way. Do not forget to check the various products and services they offer.