Easy Ways to Pay Your Personal Loan EMIs on Time
Due to the various ongoings in our daily lives, we are so preoccupied that we are unable to devote proper attention to our financials and as a result, are caught napping when urgent expenditures come up. Uncertainties are part and parcel of modern lives due to the turbulent global economy,and they are bound to hit you at some point in time. It would hit you at such a time when you are most probably least prepared for it.
What can you do in such a situation if you do not have any savings to fall back on? Will you borrow from your friends or ask your family to lend you some money? What if they also are not in a position to lend you the required amount. If you are unable to get the amount needed, it can throw your life into turmoil, so it is crucial for you to find a reliable source of finance to raise the required funds. The best option that you can avail in such a situation is to Apply for a Personal Loan.
About Personal Loans
Personal Loans are an unsecured form of loan product that is offered by most financial institutions in India. As they are of unsecured nature, you need not furnish any collateral to secure your loan. Additionally, Personal Loans extend you a significant degree of flexibility as you can use the loan amount for any requirement that you may have, and you need not furnish any details with the lender regarding the end use of money.
The repayment tenure for a Personal Loan usually is 60 months, i.e., you have to pay your Personal Loan EMI (Equated Monthly Instalment) for the duration mentioned in the loan agreement. Earlier Personal Loans were available only for salaried individuals, but now financial institutions have started extending Personal Loans to self-employed and sole proprietors also. The amounts available under these loans can go up to
50 Lakhs, depending on your credit profile and requirements.
With the rapid amalgamation of technology in the financial sector, most lenders have now taken the whole process of applying for a Personal Loan to online platforms. You can now easily find out all information that you require about various loan products as well as calculate for EMI with the help of Online Personal Loan EMI Calculator. After you have identified a suitable loan product that meets your requirement, you can apply for the same online on MyMoneyMantra and get instant decisions. In most cases, the amount is credited to your account in under 24 hours.
How to Make Timely Payments for Your Personal Loan EMI?
Repaying your Personal Loan EMIs is very important for your financial health as well as your credit score. When you default on your monthly instalment, the lender levies exorbitant charges in the form of bouncing charges and late payment fees. Additionally, they report this lapse to credit bureaus and it impacts your credit score negatively. Therefore, you must pay close attention to making timely payment of your EMIs. Here are some useful tips to help you make timely repayment of your Personal Loan EMIs:
Set a Reminder:
It is perfectly normal to forget, but if you forget the date of your EMI repayment, it is not good for your financial health. The best way to keep track of your repayment dates is to set a reminder on your phone. Follow this for every bill that you have to pay in a month.
Prioritize Debt Payments:
While setting aside funds for your monthly expenditure, you must prioritise repayment of your EMIs first. Prioritise the debt payment according to the rate of interest being charged. It is essential that you pay your EMIs in a timely manner. Otherwise, it will have a negative impact on your credit score.
Create an Emergency Fund:
You should make it a point to allocate atleast 5% of your monthly income to an emergency fund. This emergency fund acts as a cover against rainy days. If you are going through some financially turbulent times, then this emergency fund will cover for repayment of your personal loan EMIs on time.
Control Your Expenses:
You should always keep a tab on the expenses that you are paying for every month and identify the areas where you can potentially control your spending. Try to save as much money from various expense heads as possible, as this money can be used towards repayment of your monthly instalments.
Build a Budget:
One of the most effective techniques to manage your finances is to create a monthly budget. You must prepare a budget every month and allocate a fixed portion of your income to different heads. This budget should be revamped with any changes in your income. This technique will help you save a significant amount of money which can be used towards repayment of your personal loan EMIs.
In order to ensure timely repayment of your personal loan EMIs, you need to plan your finances smartly and observe strict financial discipline. This will not only improve your credit score but would also open up future borrowing opportunities for you.
Also Read: Are You a Smart Personal Loan Borrower?
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