In the event of a financial emergency, a personal loan can save the day. A personal loan, unlike other loans, is an unsecured loan. Hence, a borrower is not required to furnish any collateral as security. Furthermore, the loan can be used for any personal purpose, including paying medical costs, remodelling your home, or sponsoring a major event. However, while getting a personal loan is simple for most people, paying back the loan can be a challenge. Most people are so preoccupied with their daily lives that arranging for their personal loan repayment falls to the bottom of their priority list. This, however, is not a sound financial strategy. Hence, here are some tips for you to manage your personal loan EMI payments efficiently.
The EMI amount is inversely proportional to the loan length of your personal loan. The longer the loan term, the lower the EMI, and vice versa. If you don’t want your EMIs to become a financial burden in the future, you can choose a longer loan term when you apply for your personal loan. Resultantly, your EMI amount may be drastically reduced, thereby making it easier to manage each month. You can use the free personal loan EMI calculator to know your monthly instalments before you even opt for a loan.
A Credit Information Bureau (India) Limited (CIBIL) score is used to determine the creditworthiness of a borrower. It’s a three-digit number that reflects your previous credit history. Generally, a CIBIL score of 700 or higher is regarded as good. Borrowers with high CIBIL scores are more likely to get approved for a personal loan. A borrower can also get personal loans with cheap interest rates if they have a decent CIBIL score. A high CIBIL score also shows the borrower that you are trustworthy. Thus, if the borrower requests an extension of the EMI payment date or the loan term, the loan provider may grant the request based on the applicant’s previous credit history and high CIBIL score.
If you’re already a customer of a particular bank, availing of a personal loan from the same bank is a good idea. Having a good relationship with your bank will benefit you; they may decide to retain and offer you a reduced interest rate, thus allowing you to pay cheaper EMIs.
Getting a personal loan and paying back EMIs can be comfortable if you follow these pro tips. Moreover, after reading these tips, you can opt for a hassle-free personal loan that disburses the amount directly in your account in the shortest period. You can also choose the loan tenure from 1 to 5 years; top-up features and the application process too is short so you can enjoy your personal loan almost instantly. However, ensure to check your eligibility criteria before applying for a personal loan.