A personal loan is an unsecured loan and can be used for any purpose ranging from buying a household appliance to going on an expensive holiday. Since the lender does not have any protection in the form of security, the rate of interest is generally higher than that of secured loans.
Searching for a cheap personal loan on the internet is quite simple. The person who wants to borrow such a loan can visit a website like bankbazaar.com. Such sites are generally connected to a network of lenders with whom they have already negotiated for the best rate. The information required can be got almost immediately, and comparison tables provided showing terms of personal loans offered by different lenders makes it very easy to select the cheapest personal loan.
To get a personal loan at the most reasonable rate, the applicant needs to fulfill the following conditions:
He should have a good credit history. This means that he should have not defaulted on any previous loans. He should also have been prompt in his credit card payments and utility bill payments.
His employment history should be impressive. He should have held a steady job for considerable period of time. Lenders of personal loans do not like lending to people who shift jobs often.
His monthly income should be more than sufficient to cover his loan payments. If he has already taken too many loans and if the lender feels that servicing a new loan would be difficult with the current income, he may reject the loan request or charge a higher rate.
Residing at the same address for a considerable period of time would also work in favor of the loan applicant.
The person who wants to know “How can I get a cheap personal loan?” should also keep in mind that a high processing fee and prepayment penalty would add to the cost of the loan, making even a personal loan with a low interest rate expensive.