If you are considering a personal loan, then be prepared to pay 12-14% of interest. Despite such a high-interest rate, your CIBIL score, Annual Income, and geographical location will also decide whether you will get a personal loan or not. 

But, what if, there are some ways to get a personal loan at just 1% or 2% interest or even at no interest? No, this is not some zero-cost EMI mirage. 

Here are a few ways by which you can get a personal loan at a significantly lower interest rate. Let’s know them all.  

Loan against PPF

If you are a PPF account holder, then getting a loan at a 2% interest rate is at your fingertips. You can take this loan from the third Financial Year after opening a PPF account and you have to repay this loan till the 6th Financial year. In other words, you will get a loan for 36 months. During the tenor of the loan, you will not earn any interest on your PPF account. This loan amount is limited to 25% of the total investment made in PPF till the 2nd Financial Year. 

Giving you a Heads up, if you fail to repay this loan within 3 yrs, then, your interest rate will increase from 2% to 6%.

Loan against FD

If you need money and want to save premature charges on FD, then just take a loan against FD at just 1-2% interest. You can 80-90% of your FD amount as a Loan. With this, you would not be only saving on premature charges but also Loan Processing fees. But, during the tenor of the loan, you will not earn interest on the FD. 

Advance against EPF

If you are a salaried employee and you contribute towards PF every month, then you can get an advance from that PF contribution without any interest. This withdrawal can be made only for specified reasons. 

1. You can withdraw 50% of PF for the marriage of self, siblings, or children. 

2. For Medical Treatment, you can withdraw 6 times your Basic salary + DA.

3. For the purchase or construction of your house, you can withdraw 36 times your Basic Salary + DA. 

4. For Higher Education purposes

5. If you are unemployed for a month, you can withdraw 75% of your PF.

Also, some service conditions are required to be fulfilled to be eligible to take this advance.

Conclusion

So, these were some ways in which you can take Personal Loans with zero or significantly less interest. With Personal Loans and credit cards becoming over accessible, people rarely think of better options. But, every penny saved is a penny earned. So, use these simple hacks to save on a great deal of interest.