Rules of Personal Loan Repayment

The personal loans are blessed with an advantage that you do not have to pay any collateral for the same. You even don’t need any guarantor to get the personal loans. These are the loan types, which are approved instantly and are considered among the quickest sanctioned loans. The personal loans are among those loans which require the minimum paperwork and are in fact, hassle free loans.

Another important part associated with the personal loans is that, they can be utilized for any purpose and one can apply for personal loans to meet any needs and demands of their own without mentioning the exact requirements of own, to bank. All you need is to pay back your EMI well on time and get another benefit associated with personal in the form of the improved credibility or better credit score.

We have seen many times, that people prefer personal loans to meet any requirements of their own and in a way establish their good credibility in the eye of the banks with the timely repayment of the loan amount. However, there are some golden rules, which a person should consider before choosing a loan scheme and repayment of that loan. Here’s a list of those golden rules for personal loan repayment.

Choose EMIs you are comfortable with

Making a choice of the best suited EMI is a necessary step, which every person should consider with utmost care. Don’t just go overboard with the monthly installment and at the same time don’t go into the shell very deep as the interest rates on personal loans are very high, thus resulting in ending up paying a very huge amount (a sum of interest rates and principal amount). Judge accordingly, balance everything, analyze your income and manage your finances accordingly.

It is always advised that a person should not pay more than 40% of the total income towards the monthly payment as EMI as accordingly to the survey, a person needs around 60% of the total income to sustain their living and support their dependents. Thus, finally choose the EMIs that you are comfortable with during the times of personal loans.

Pay less interest

While, taking personal loans, always look for the ways to save your money. Most of the money while taking loans ends up as interest amount and people tends to pay a huge chunk of payment only as interest rates. There are several factors, which are decisive in the interest rate calculation. But, if you have researched deeply and gained enough knowledge about loans, you will look for the ways to pay up all your dues by selecting the quickest repayment options. Looking for the lower interest rate is a good technique to save a handsome amount from your hard earned money and thus, you can even pay higher EMIs to quickly dispose off your loan. But, always keep a balance of your EMI liability and your expenses.

Always make a choice of the quickest repayment of loan with the higher EMIs and get rid of it, if this is under your capability. Be comfortable with the choice of the EMI and don’t over burden yourself with the higher EMIs in order to save interest amount.

Avoid outstanding EMIs

It is advised that you keep at bay, all of your outstanding EMIs. There are several benefits, which are connected with avoiding outstanding EMIs on your name and one such benefit is the credit score of yours. Keeping away all your outstanding EMIs will enable you to keep your credit score unaffected and at the same time, you avoid all penalties, which are applicable in case of late payment of EMIs.

Thus, in any case, you are feeling troubled over the payment of your EMIs, you can consult your banker for the same and we are sure, they will help you out without getting affected. You can ask for a favor from the bank in the form of extended loan tenure or any path, which does not affect your CIBIL Score. You can even ask for the transfer of the personal loan into a new loan, which is available at lower rate of interest. Find out your personal loan eligibility .

Prepay when you have money

The facility of prepayment is just a bliss for the people, who are ready to clear all of their dues before the completion of the loan tenure. The prepayment allows you to prepay your loan and get rid of the burden of debt.

There are many situations in life, when you have an access to the additional money and thus giving you an option for the loan repayment. Always keep in mind, a fact that the repayment of loans much before the expiry of loan tenure will better your credit score and at the same time, benefit you financially. The prepayment of loan allows you to save a handsome amount of money, which gets wasted as paying up interest rates for the loan amount.

However, one must keep a fact in mind, there are some banks, which calls for the prepayment charges and thus, one is advised to better check the rules and regulations of the concerned bank over the prepayment options. In case, the prepayment is applicable and it costs you more, it is better you keep an additional amount with you and continue with your loan as it is. While, in case, the prepayment charges are nominal or almost nil, it is advised, you pay off your dues and ease your burden.

Now, that you are aware of the personal loans and how to manage it on your end, you are ready to start your deals for personal loans. You can negotiate better concerning personal loans and can better handle all situations on your own, without affecting your CIBIL Score and more importantly without affecting your personal life. Happy living is all important and loans must be taken to supplement your dreams. Loans are the better options to get financial support during the times of needs and should be considered as a liability.

Apply for personal loan through the form and get funded for your personal loan requirement.