When applying for a loan, one of the biggest concerns is the interest rate. A lower interest rate can save a lot of money over time. Many people take loans for homes, cars, businesses, or personal needs. But not everyone knows the tricks to get a lower interest rate. Let’s understand the tricks of 2025.
A CIBIL score is a number that shows how well you have handled past loans and credit card payments. If your score is above 750, banks and NBFCs will offer you lower interest rates. A higher score proves that you are a responsible borrower, and lenders see you as low-risk.
Pay all EMIs and credit card bills on time.
Avoid taking multiple loans at once.
Keep credit utilization below 30%.
Do not apply for too many loans in a short period.
Many people apply for a loan at the first bank they visit. But different banks and financial institutions offer different interest rates. In 2025, you can use online loan comparison websites to find the lowest interest rates. Some lenders also have special offers with lower interest rates during certain seasons.
The loan tenure is the length of time you take to repay the loan. A longer tenure might feel easier because the monthly payments (EMIs) are smaller, but it means you will pay more interest overall. A shorter tenure means you pay less interest, and some banks offer a lower interest rate for shorter loans.
Example:
A 10-year loan will have a lower EMI but a higher total interest paid.
A 5-year loan will have a higher EMI but a lower total interest paid.
If you can afford higher EMIs, choosing a shorter tenure is a smart way to save money.
Loans are of two types: secured loans (where you provide an asset as security) and unsecured loans (where no asset is required). Secured loans always have lower interest rates than unsecured loans. If you can provide collateral like property, gold, or fixed deposits, banks will give you a loan at a much lower rate.
Many people do not realize that interest rates are negotiable. If you have a strong credit history, existing accounts, or good financial stability, you can negotiate with the lender for a lower rate. Banks often reduce interest rates for loyal customers with good repayment records.
If your income is low or your CIBIL score is not high, applying with a co-applicant can help. A co-applicant should have a high income and a good credit history. This reduces the lender’s risk, and they may offer a lower interest rate.
Loans come with two types of interest rates: fixed rate (which does not change) and floating rate (which changes based on RBI policies). Floating interest rates are usually lower than fixed rates and can save you money if rates decrease in the future.
If you already have a loan but the interest rate is high, you can transfer your loan to another bank that offers a lower rate. This process is called balance transfer. However, check for processing fees and charges before transferring the loan.
If you have a salary account or savings account with a bank for many years, they may offer you a lower interest rate as a loyal customer. Banks prefer lending to people they already have a financial history with.
| Tip | Details |
|---|---|
| Maintain a High CIBIL Score | A CIBIL score above 750 can help you get lower interest rates by proving you’re a responsible borrower. |
| How to Improve CIBIL Score | Pay bills on time, keep credit utilization below 30%, avoid multiple loans at once, and don’t apply for many loans. |
| Compare Different Lenders | Use online loan comparison websites to find the lowest interest rates and special seasonal offers. |
| Choose a Loan with a Shorter Tenure | Shorter tenure loans usually have lower interest rates and save money on total interest despite higher EMIs. |
| Offer Collateral for a Secured Loan | Secured loans, backed by assets like property or gold, offer lower interest rates compared to unsecured loans. |
| Negotiate with Your Bank | Negotiate lower interest rates if you have a strong credit history or are a loyal customer. |
| Apply with a Co-Applicant | Apply with a co-applicant having good credit history to lower the lender’s risk and get a lower interest rate. |
| Choose Floating Interest Rate | Floating rates are usually lower and can save money if rates decrease, compared to fixed rates. |
| Transfer Your Loan to a Lower Interest Rate Bank | Transfer your loan to another bank with a lower interest rate, keeping in mind any processing fees. |
| Maintain a Strong Banking Relationship | A long-term relationship with a bank may offer you lower interest rates as a loyal customer. |
Getting a lower interest rate isn't just about luck. It takes smart planning, research, and good financial habits. By keeping a high CIBIL score, comparing different lenders, choosing the right loan term, and negotiating with banks, you can lower your loan costs. These strategies can help you save money on your loan in 2025.
We understand that getting a loan can be very stressful with confusing documents, unclear communication, and various other challenges. That is why we take care of your loan application process, saving you time and hassle by handling the paperwork and communicating with the loan providers.
Check the details here at EazyBankLoan
Need help? Reach out at support@eazybankloan.com
A CIBIL score above 750 is ideal for getting the best interest rates.
Banks usually offer lower interest rates, but NBFCs have easier approval processes.
Yes, but the interest rate will be higher. You may also need a co-applicant or collateral.
A shorter tenure reduces the total interest paid because the loan is repaid faster.
Yes, but check the processing fees and transfer charges before doing so.
Not all, but many banks offer lower rates if you have a good credit history.
A fixed rate does not change, while a floating rate can increase or decrease based on market conditions.
No List Founds!
Your email address will not be published. Required fields are marked *
