The interest rate is too high

Underlying Concerns:

• The prospect is worried about the cost of borrowing and may feel that a high interest rate could make the loan unaffordable.
• They may be comparing your rate to other loan providers or financial products and feel that they could get a better deal elsewhere.
• The prospect could be cautious about taking on new debt, especially if they feel the cost of repayment might impact their finances.
• They likely need reassurance that, despite the rate, your loan product offers additional value or unique benefits that make it worthwhile.

How to Tackle the Objection:

1. Acknowledge their concern about the interest rate: Show empathy for their hesitation, acknowledging that interest rates are a big consideration when choosing a loan.
2. Highlight unique benefits: Emphasize the extra value your loan product offers that might offset the cost, such as flexible repayment options, no hidden fees, or personalized support.
3. Offer cost-saving features: Mention any features that can help reduce the total cost of the loan over time, such as early repayment without penalties or other incentives that save them money.
4. Explain the value of convenience or speed: If applicable, highlight the convenience, speed, or simplicity of getting approved for your loan compared to traditional lenders, which can often justify a slightly higher rate.

Sample Script (Detailed and Simple Language):

Prospect: "The interest rate is too high."

You: "I understand, [Prospect’s Name]. Interest rates are an important factor when choosing a loan, and it’s natural to want the best deal."

• "One thing that sets our loan apart is the flexibility we offer. For example, we allow early repayment without any penalties, so you can pay off your loan faster and reduce the interest you’d pay overall."

• "Additionally, we’re known for quick approvals and minimal paperwork, so if you’re looking to access funds faster without the usual hassle, this could be a good fit."

• "Would it help if I walked you through some of these features to see if they add enough value for you? Sometimes the flexibility and speed can make a real difference."

Probing Questions to Engage the Prospect:

• "Are there specific features you’re looking for in a loan beyond the interest rate? We have some cost-saving options that could help make the loan more affordable overall."
• "How soon do you need the funds? Our quick approval process could save you a lot of time compared to traditional banks, which often comes with higher requirements."
• "Would flexibility in repayment terms or the ability to pay early without penalties make a difference for you?"

Call to Action:

Offer to walk them through flexible options and cost-saving features that help make the loan more affordable, even if the rate is slightly higher.

Example:
"Let’s take a closer look at some of the flexible repayment options and cost-saving features we offer. This way, you’ll have a full picture of the value you’re getting, and you might find that the overall package makes sense. Does that sound fair?"

Key Points to Emphasize:

1. Flexible Repayment Options: Highlight options like early repayment without penalties or the ability to adjust the payment schedule, which can help offset the higher interest rate.

2. Convenience and Speed: Emphasize the ease and speed of getting approved with your loan product, making it ideal for those who need quick access to funds without a complicated process.

3. Additional Value Beyond Rate: Reassure them that your loan product offers extra value through unique benefits or support, which can be worth the slightly higher rate.

4. Total Cost Savings: Focus on features that can reduce the total cost of the loan over time, helping them understand the real financial impact beyond just the rate.