How do I get a low-interest consolidation loan?

Answer by  Hewitt302 (1720)

Low interest can be between 2% and 10%, depending on the bank,and if you qualify. For student loans, most banks will allow you to consolidate and lock you in at 5% with accumulating interest during your time of deferment or forebarance. make sure your credit score is good, do not have any outstanding debts to pay off, and have collateral.

Answer by  patti (29325)

"Low interest" means that the rate is among the lowest at which the lender will consider loaning money. Loan with lower interest are usually reserved for the most credit-worthy borrowers. Like anything else, approval of a consolidation loan is predicated on credit-worthiness as well as debt-to-income ratio of the borrower.

Answer by  nphatak (11)

"Low-interest" constituted an effective annual rate equal to the risk-free rate for the corresponding maturity plus an an appropriate credit spread. For a 10-year average maturity this might be on the order of 8%.

Answer by  AEF (519)

Depending on your financial situation you may be able to get a low interest second mortgage or a low interest loan from your bank. "Low interest" is an "it depends" definition. If all of your debt is at 19%, then a 10% loan may be low for you.

Answer by  lokindra (481)

A 'low interest' loan is typically lower than what you would see advertised and generally in the range of Prime + percentage (2 or 3%). The easiest way to qualify for low-interest consolidation is to secure the loan against something of value, such as a house, property, or car.

Answer by  gcmeyer2 (787)

Low interest is a matter of opinion. Go to websites like bankrate. com or others to see what might be available. Government loans can always be consolidated.