How to Get a Low-Interest Personal Loan

Video Transcript

"Hi my name is Julie Asti. I am a Certified Financial Planner with Asti Financial Management and today I'm going to talk about how to secure a low interest personal loan. First of all low interest personal loans are going to be very difficult to get in this current environment. Lending restrictions with the mortgage crisis have really gotten strict and it is quite tough to get a personal loan. Low interest personal loans is also called a signature loan and they are offered by banks and what makes them different than other types of loans number one is low interest which is tough to get in this environment and number two they are unsecured and in this environment a lot of lenders are really reining in much their lending requirements and they are requiring much higher lending requirements so having an uncollateralized meaning you are putting up no backing for a loan is going to be quite difficult but you can do it. You would be going to a banking institution and requesting a low interest personal loans. Usually the loans are going to be for a fairly small dollar amount, usually their personal loans are for $2,500 to maybe $10,000. They are not for large loans. They do carry lower interest rates in this current market environment you might find a rate of maybe 8% for a loan like that and really the lending requirements for each institution is going to be completely different because they are writing their own guidelines so there is no set qualification of underwriting requirements that all banks share. Each institution is going to look at their own portfolio and their own lending requirements separately but what is going to allow you to qualify for a low interest personal loan is going to be having a solid job and having a solid job for a long time so that they can verify that you have a stable income. They are also going to be looking also for an excellent credit score and the last thing that they are going to be probably looking at is your debt income ratio to make sure that it is very low because they are going to want to make sure that you are a really good candidate since the loan is going to be unsecured. So the first place to check would be with your banking institution and ask if they offer low interest personal loans and find out what the lending requirements are. My name is Julie Asti and I am a Certified Financial Planner with Asti Financial Management and you can learn more about my services or my company at www.astifinancial.com."