How to Get the Lowest Personal Loan Interest Rate with a 750+ CIBIL Score

7. Select a Shorter Tenure If You Can Afford the EMI

Loan tenure has a major effect on total interest.

Consider a hypothetical ₹5 lakh personal loan at 12% reducing-balance interest:

The exact figures depend on the lender's calculation and charges, but the principle is important: a longer tenure generally means more total interest, even though the monthly EMI is lower.

Choose the shortest tenure that comfortably fits your monthly budget.

8. Compare APR, Not Just the Interest Rate

This is one of the most important steps when comparing personal loans.

The advertised interest rate does not necessarily represent your complete borrowing cost.

The RBI's Key Facts Statement framework requires important loan information to be disclosed, including the interest rate, applicable fees and Annual Percentage Rate (APR).

For certain personal loans, RBI also requires annualised interest/APR information to be communicated in the Key Facts Statement and loan agreement.

Before signing, check: