8 Tips To Manage Personal Loan Repayment:
Personal loans are the most convenient and quickest way to arrange funds for multiple uses. You can take a Manage personal loan for multiple requirements, and there are no restrictions on the end-use of the loan amount.
These loans are unsecured, so borrowers do not have to worry about giving an asset as collateral against the loan. These features have made personal loans in India very attractive.
As per RBI, the credit outstanding for personal loans increased by 12.1% between September 2020 and September 2021, indicating its increasing popularity among Indians. Let us dig deeper into the world of personal loans.
A personal loan can help you handle financially strenuous situations. The documents required for a personal loan are easy to arrange and the loan processing from a trusted lender is transparent and quick.
Personal loans are one of the most flexible and well-known boring instruments available in our country. These unsecured financing facilities can be used for any purpose.
Interest rates on personal loans are often competitive which prove to be a useful and handy tool to meet the liquidity crunch in case of a financial goal or an emergency.
A personal loan can prove to be very useful in meeting your financial needs during these uncertain times. But, some people feel that personal loans are very expensive, and carry a lot of charges, and they consider it the last option.
Contrary to their thinking, personal loans can prove to be very favorable for the borrower and often turn out to be the best option in many borrowing situations. To know more, let us examine some of the notable benefits of availing of a personal loan.
However, one needs to be disciplined and regular with personal loan repayments to avoid a dent in the credit score and late payment charges from the lender.
There are 8 Tips to Manage Personal Loan Repayment:
1. Budget your expenses:
Once the lender grants a personal loan, the borrower is expected to make monthly EMI payments having a component of the principal and interest loan amount every month.
It is a wise move to create a budget and check if you can handle the EMI payment of a personal loan before taking one. Taking a well-researched debt that you can afford to repay will help you save yourself from defaults on repayments.
The EMI a customer needs to pay every month should be comfortable and should not affect other debt commitments and routine expenses of the individual.
2. Cut down unnecessary expenses
Becoming responsible for personal loan repayment can help the individual keep a check on his monthly expenses. Since you are conscious that you need to make a provision for the loan EMI, it will lead you to cut down unnecessary expenses. It would give you enough cushion for making comfortable loan repayments also.
3. Calculate the total debt amount
The total personal debt amount is not only the loan amount the customer takes. It has several other cost components such as interest charges, processing fees, file charges, etc. All these components add to the total debt amount one has to pay to the lender.
Therefore, it is advisable to calculate this total debt amount and the monthly EMI it will generate before taking a loan. It will ensure the customer knows what he is expected to pay and will save him from defaults. Fullerton India provides collateral-free personal loans at low-interest rates starting at only 11.99% per annum with zero hidden charges.
4. Make timely repayments
As mentioned before, discipline is crucial to personal loan repayments. Default in paying the EMI on the due date will attract late payment fees from the lender, and it will also negatively affect the CIBIL score of the borrower.
If a customer tends to be forgetful about repayment dates, he can set reminders or even automate his repayments to avoid skipping them. Some lenders also offer discounts on pre-authorized or automatic repayments, which reduces the loan’s cost for the borrower.
5. Debt consolidation
If an individual has taken multiple personal loans from different lenders, it can be a complex task to remember the repayment schedule of each loan individually.
The customer can consolidate all his debts into one to make repayments easier. Fullerton India provides personal loans of up to Rs. 25 lakhs to salaried and self-employed individuals, which can help in consolidating multiple individual debts for a low-interest rate.
6. Keep loan repayment as a priority
One needs to be responsible for the loan repayment and not get casual after the loan amount is sanctioned. Keep loan repayment a priority and make the EMI payment in full till the loan tenure is over to manage personal loan repayment smartly.
7. Increase EMI payments whenever possible
In case you get a salary hike and have more money in your pocket every month, you can give a push to your EMIs by increasing their amount. It will help you repay the loan faster and reduce the chances of default on repayments. Additionally, it will also decrease the amount you need to pay as interest over the loan’s life.
8. Opt for a suitable loan tenure
The loan tenure decides the EMI amount. If a borrower does not want the burden of a high repayment amount every month, he can opt for a longer-duration loan. However, a longer tenure increases the overall cost of the loan. Therefore, one must select the right loan tenure as per his repaying capacity to avoid missing payments.
You can avail of an instant personal loan at easy repayment terms and low-interest rates. Use the online calculator to check your loan eligibility for collateral-free personal loans.