There is no time in a lifetime of a person when one does not need money – and that is the very reason why most of us decide to borrow personal loan. So knowingly or unknowingly you tend to borrow personal loans. The banks have also understood the needs of the market and therefore they have been able to make the most out of behavioral pattern of people by offering personal loans to as many salaried individuals as possible in form of pre-approved loans, low cost loans that come with attractive rate of interest and offers that come along with personal loans. Till the time you borrow a personal loan it looks good, but when it comes to repayment of a personal loan there is a point when the EMI starts looking like a burden. This article is aimed at empowering you with tips to ensure that you repay your personal loan quickly and easily with a full proof planning:

1. Opt for higher EMIs: So there are many people who would offer you loans and tempt you with lower EMI options. Now what exactly a lower EMI means? Lower EMI means Higher Rate of Interest. Since you are paying only a small fraction therefore your loan will not be paid soon which basically means that you will have to pay higher amount towards the interest charged on your loan. On the other hand if you can afford a higher EMI you tend to finish your loan faster and therefore the charge levied towards interest also remains less.

2. Opt for shorter tenures: If you opt for a shorter loan tenure when you borrow a personal loan you will be able to save on the interest rate. The longer time you take to repay the loan the higher will be the interest charged on your loan.

3. Save money to repay quickly: Whenever you borrow any type of loan you should save enough that you will able to plan a pre-payment or a foreclosure as early as possible. Imagine if you are able to save money equivalent to your EMI you will be able to close you personal loan in just half the time of the decided loan tenure.

4. Raise Payments with Raise in Income: if you borrow a loan amount of 2 Lakhs for 2 years and you get a raise in payment, you can make use of your additional income to make a pre-payment or a fore-closure. You can also make use of your annual bonus, and other allowances to make a fore-closure or atleast make a major prepayment in a year. One major payment can also be really helpful to pre-pay loan before the end of loan tenure and save on the interest cost if you are not able to save enough on a monthly basis.

5. Plan for a pre-payment or Fore-closure: Making a pre-payment or a fore-closure can help you get away with the extra burden of loan on your shoulders every month. Therefore, plan a fore-closure and save on the interest cost levied on your loan. Just ensure that you do not make a fore-closure towards the end of your loan tenure. Since the banks would have recovered the interest component of the loan by then. Therefore planning a fore-closure or pre-payment is suggested in the early stages and not towards the end of the loan.

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