The first step to availing of a low-interest-rate loan is to understand how they really work and what makes them a low-interest-rate loan. The types of loans that charge interest below the applicable Federal rate; as under section 1288(b) are typically titled low-interest rates loans. If you are applying for a personal loan with a low-interest rate, you can use it for the purposes that they are usually taken for, including emergencies, unforeseen medical expenses, education fees, unaccounted-for marriage expenses, travel plans, and so on. In case of a financial emergency, these personal loans are a boon considering that they will not drive you into a deeper debt trap and are also a good boost to your credit score.

Olyv (Previously SmartCoin) is a trustworthy online lending platform that offers instant low-interest-rate loans that are a very good way to restore your financial health. Check out these four ways in which you can ensure that you get a low-interest-rate loan to improve your credit report.

Reducing debt is a non-negotiable

Substantial debt obligations are a key reason for financial imbalance. It is important to understand that different financial instruments come with varying interest rates. Borrowers with lower risk profiles typically get loans with low-interest rates. In achieving this you have to narrow down your obligations to lesser liabilities, which can be easily managed. You can subsequently apply for a low-interest rate loan to consolidate further bank loans, overdrafts, and other forms of credit. This also ultimately aids in improving your credit footprint.

Being smart about your credit mix

Typically these low-interest rate loans from online platforms do not require any collateral or security against the assured credit amount. For most salaried, self-employed, and underbanked individuals, this means more ease in accessing financial products. The more you diversify your credit mix, the better it is for your credit score. If you already have ongoing credit card debts, home/vehicle loans, or bank overdrafts, among other forms of credit, consider opting for a low-interest personal loan for your short-term liquidity needs for diversification of your credit mix purposes. 

Enabling timely payments

Essentially, low-cost personal loans are so by virtue of having a lower applicable interest. This is why borrowers find them easier to pay off as monthly EMIs for the same are low. On-time payments and the conclusion of loans mean a healthy credit score. Borrowing low-interest personal loans and repaying on time helps build a sound credit score. Reach out to Olyv (Previously SmartCoin) for low-cost personal loans that you can avail of to address emergency cash needs.

Short-term repayment

Low-interest rate loans also are more likely to come with a shorter repayment tenure. Short loan tenures automatically control any long-term financial burden. Low-cost personal loans help you bypass this concern as their tenure is fairly short, allowing borrowers to promptly clear dues within a short span. Olyv (Previously SmartCoin) is one of the most trusted online lending platforms offering short-term low-cost loans to the self-employed and the salaried segments of India. Download the app and choose from various loan options aligned with your requirements and tenure preferences.

Leaving you with quick thoughts

Positive credit history makes you more sure-footed in finance management. It is also the best way to ensure that you are always approved for different kinds of loans in the future. This also improves your chances of availing and getting sanctioned for different kinds of loans in the future. You can consider borrowing quick personal loans and repaying them according to the schedule to accelerate your credit health’s upward trajectory. Apply for a low-interest rate loan through the Olyv Loan App, which can be downloaded through Google Play Store.