The affordable monthly income of the potential borrower makes a decisive impact while calculating the interest rate being offered to him. The Fullerton India needs to assess the repayment ability of the borrower accurately before approving the loan to him. His monthly income allows Fullerton India to gauge his payback capacity accurately and also to get some surety in the event of a possible default.
If the applicant has a higher monthly income, Fullerton India is more or less convinced that the amount lent out would return to the bank within the scheduled time frame itself. On the contrary, if the applicant has a low monthly income, he will have difficulty in paying his EMIs on time every month. In this case, Fullerton India will see him as a risky proposition, as far as his loan repayment capacity is concerned. Hence, it will dampen his chances of getting the best interest rates from Fullerton India.
The loan repayment period or the loan tenure of the Fullerton India personal loan has a decisive impact on the interest rates offered by the bank. The rate of interest is higher for shorter personal loan tenure and vice versa.
While deciding on your personal loan application, Fullerton India scrutinizes your credit profile too. Your credit profile includes details such as how efficient you are in credit handling, your previous repayments and your past loan/credit records. If the above-mentioned parameters are found satisfactory, Fullerton India will not only approve your personal loan, but also may provide you with the best interest rate.
The Type of Fullerton India Personal Loan you opt for
The rate of interest for a Fullerton India personal loan is also influenced by the loan type you have chosen. As you are aware of, there are two types of personal loans-
Secured Personal Loan: In this case, you need to pledge gold, a movable/immovable security or property as collateral while applying for your Fullerton India personal loan. The lender now has a fallback option, if you can't repay your loan tomorrow and hence, you are considered a less risky proposition. Fullerton will not hesitate to grant you better offers with lower interest rates, if you opt for a secured personal loan.
Unsecured Personal Loan: In contrast to the secured personal loans, you do not need to pledge any security/collateral to Fullerton India. Therefore, your perceived creditworthiness is everything upon which the lender determines your loan repayment capability in future. The interest rates in an unsecured personal loan will be higher in comparison to secured loans as the Fullerton India deems you as a higher risk proposition while lending to you.
If you say yes and have bonhomie with the lender, you are usually considered for offers/special schemes with cheaper interest rates. However, do have in mind that interest rate is a discretionary matter of the lender. By becoming a customer, you do not necessarily ‘earn' the right to get the lowest interest rates going around.