How to Get a Lower Interest Rate on Your Personal Loan – Our Guide

August 01, 2019

Of all the problems that South Africans face, one of the most frequent is poor financial management, which plagues millions. In fact, many have to borrow money to make ends meet every month. Financial struggles are quite common in South Africa, to the point that they have become nearly inevitable for every adult in the country. A culture of borrowing is very much alive in the country. Getting a loan is common.

Although it would be better to not borrow money at all, certain situations might get the best of you, making it much harder to avoid going to a lender. The truth about life is that you’ll never be able to see what might happen to you in the future.

This is especially true regarding financial events that might leave you with no choice but to apply for a loan. However, with the right mindset, you’ll be able to get a loan with better interest rates if you present yourself as an attractive buyer.

Curious as to how you can get on a lender’s good side and end up with a lower interest rate than you expected? Here are a few ways that you can present yourself as an attractive borrower to any kind of lender:

Be timely

Of all the characteristics you can show, nothing will make you look better to a lender than a sense of timeliness. By showing that you’re responsible enough to pay on (or before) the due date, you’ll be able to present yourself as an attractive borrower.

Lenders love to help those who pay in a timely manner because it shows that you’re committed to your goals and willing to comply with what is supposed to be done. However, timeliness doesn’t just mean making payments on time. It also refers to any kind of deal that you make with your lender, especially when it comes to meetings. 

Have proper money management skills

With a proper understanding of your financial capacity, an ability to live within your means, and consistent tracking of your cash flow, you’ll easily be able to hone your money management skills.

Having the necessary money management skills will make it easier to leave a good impression on lenders. That will allow them to trust you, which in turn will make them willing to lend you money at a low-interest rate, especially if you can show timely and accurate financial records. 

Borrow with a proper purpose

One thing you should understand when borrowing money from lenders is that they’ll judge you on why you had to borrow money in the first place. By showing that you’re seeking a loan with a proper purpose behind it (and not just for shallow reasons like gambling), a lender will feel like they can trust you with their money, making it easier for them to issue you a loan.

Another thing you should remember is that unexpected financial situations are considered a better purpose than borrowing for the sake of purchasing a big-ticket item, such as a car. 

If you’re looking to apply for a personal loan in South Africa, get in touch with us today to see how we can help.