Personal Loan

Which Month Is The Best To Apply For Personal Loan And Why?


If you need to borrow money, you can apply for a personal loan as it is one of the most convenient options. The process is completely hassle-free and these loans do not require any kind of collateral other than the promise to repay the money. There is no shortage of personal loan providers online or at brick-and-mortar banks, but consumers are mindful, as are many lending experts. Why?

The most important factor is that with interest rates between 16% and 30%, these are some of the costliest loans available. Since the borrower is not required to furnish collateral, the extraordinarily high-interest rates are reasonable. The borrower’s current cash flow, including salary, rental income, company profit and loss, loan payments, and other cash outflows, are factored into the loan amount.

If the product is as bad as people say it is, then why does it even exist? Is it possible that getting a personal loan may help out? The answer is yes. However, it depends on the borrower’s situation.

What is the Best Time to Apply for a Personal Loan?

If you want to apply for a personal loan, the greatest time to do so is when terms favour you most, such as low or no interest rates, low or no processing costs, etc. You should be able to acquire enough money from the lender to cover your expenses, and the loan itself should cost as little as possible. Let’s give each of these a careful reading.

Finding the Lowest Rate for a Private Loan

Personal loan interest rates are normally high as consumers don’t need to provide any security or collateral to acquire this loan. In certain Indian institutions, the rate may be as high as 25% a year. Recently, though, some banks have lowered their minimum interest rate on personal loans to below 10%. To qualify for the best possible interest rate, borrowers need a credit score of at least 750 and a payback history that shows zero instances of late payments.

What Else Lenders Check Apart from the Credit Score to Offer a Lower Interest Rate on a Personal Loan?

A person with a high credit score has a better chance of qualifying for a reduced interest rate on a personal loan. However, the lender will look at more than that before approving your loan. You need a substantial monthly income. Further, your current loan and credit card balances should not be too large. In such cases, the bank or financial institution will likely agree to your request for a reduced rate on a personal loan.

You have a better possibility of earning a reduced rate the further up you go in an organization, and that likelihood increases if you work for a very successful company. Top executives from all industries receive discounted prices.

When the Processing Fee Is Very Low or Even Zero?

Your loan will incur a one-time processing fee. Loan fees can be a set amount or a percentage of the borrowed funds. But the idea to apply for a personal loan is unique. Unlike with other types of loans, the processing charge for a personal loan is automatically deducted from the amount you borrow. The remaining sum is the one deposited into your account. However, the interest rate will be calculated based on the amount you request, not the amount you get from the lender once the fee is deducted.

A lower processing charge means you may borrow more money from the lender to cover your expenses. Lenders may often advertise a “no price” processing option to win over new consumers. If you find yourself in possession of such an opportunity, don’t waste any time taking advantage of it.

When Should You Consider Taking a Personal Loan?

1. Home Renovation

It’s a great option for getting the money you need to remodel your house without having to put up any of your property as collateral. The shorter duration of the commitment means that you won’t have to bear the weight for as long.

2. Loan with Higher Interest Rate

Well, apply for a personal loan to pay off another debt that carries a higher interest rate for a smart financial move. When compared to the high-interest rates charged by credit card companies (often 24–36%), a personal loan with a rate of 10–18% makes more financial sense.

3. To deal with a medical emergency

Because of the urgency of medical emergencies and the limited paperwork necessary for personal loans, they can be a lifesaver when times are tough.

4. To go for higher education

It’s smart to apply for a personal loan if you want to go to college, whether that’s in India or elsewhere. Aside from covering tuition, the loan can be put toward living expenses, transportation, and whatever else the borrower needs.

5. Raise your credit rating

If you ever need to borrow a large amount of money, your credit score will be a major factor. To improve your credit score quickly, apply for a personal loan in a small ratio and repay it on time or ahead of schedule. By showing the lender a positive credit history, you will increase your chances of getting approved for a large loan in the future.


No matter what motivates you, a personal loan is a serious financial commitment that has to be treated with respect at all times. Never take on more debt than you can reasonably afford to pay back, and spend it wisely once you have it.

Examine your alternatives before you apply for a personal loan to pay off credit card debt or fund a home renovation venture. To choose the best loan for your needs, talk to your bank and any financial advisors you may have, including those that specialize in Piramal finance. You should have your personal information handy to speed up the procedure, and you should avoid high-interest payday loans and fraud at all costs. It’s possible that, with the appropriate strategy, you may get the money you need in a matter of days.