A personal loan always comes to your rescue whenever you require instant cash as a loan immediately. It is an unsecured loan and therefore, you don’t have to provide any collateral to get approved for a loan. As a result, personal loans are in much demand these days, despite their higher interest rates.
According to the Reserve Bank of India (RBI), unsecured finance, which includes personal loans and credit card debt, amounted to INR 576,600 crore at the end of FY18. It may be easy to get a personal loan but when it’s time to repaying, you should have a proper plan, otherwise, you will end up paying late, resulting in late payment charges and a dip in your credit score.
Follow the simple steps below to repay your personal loan EMI easily.
1. Set-up reminders :
Setting up reminders will make sure you don’t miss your EMI payment. Set a monthly reminder in your calendar so that you are intimated two days before your payment is due. This helps you maintain sufficient funds in your bank account before the due date arrives. It is much better if you set auto-debit in case you always have enough funds in your account. These steps will ensure EMI bounce charges and penal interest.
2. Choose the loan tenure wisely :
Before choosing your loan tenure, you must assess your monthly income and your monthly expenses. This helps you decide how much money would be available in your account to pay the EMI. People who do not properly plan may take additional loans, ending up in a cycle of debt.
3. Select the right lender :
Before applying for a loan, do thorough research and pick out a few top lenders. Perform a comparative analysis and then shortlist a lender considering the following factors:
- Quick turnaround time
- No hidden charges
- Minimal documentation
- Lower interest rate
- Flexible repayment option
- No prepayment penalty
Choosing the right lender with relaxed terms will help you to repay your personal loan EMI conveniently. It is better you consider each of the factors and then make a decision because you might sometimes choose a lender who has a lower interest rate, but the lender may load you up with various hidden charges.
Overall, if you plan properly and follow the simple steps mentioned above, then you will be able to conveniently repay your personal loan EMI. In case you are looking for alternatives to a personal loan, you can apply for a line of credit with FlexSalary.
If you are a salaried individual, you can apply for an instant line of credit up to INR 2,00,000 lakhs and get cash disbursed to your account on the same day you have applied. The benefit of having a line of credit is, though you may not need cash immediately, funds will be right under your fingertips to withdraw in case you have an emergency.