Updated: Feb 11, 2022, 17:33 ISTShare:
Factors impacting interest rate on loan are:
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Loan Size and Tenure: Smaller loans usually come with a higher interest rate. Also, the longer the tenure, the lower is the interest rate.
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Collateral: Interest rates are higher on unsecured loans, which are loans without any collateral, than on secured loans.
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Credit History and Score: A longer credit history and a good credit score can help you get a loan at a lower interest rate.
There are several other factors that impact the interest rate on loans, including whether you have a job with a fixed salary or are self-employed and whether there are co-borrowers for the loan.
