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Find the right personal loan tenor that works for you

  • Highlights

  • Be it wedding or taking an international vacation, a Personal Loan can be an affordable solution to all your financial needs

  • However, repayment of the Personal Loan can be a bit difficult if you don’t have a solid financial planning in place

The tenor that you choose for your personal loan for travel impacts your borrowing experience significantly. Selecting it without a thought can cause the personal loan’s tenor to clash with that of other debts that you may have. This makes repayment of the loan tough, and drains your finances. So, it is important to take the time to select the right loan tenor to avoid unnecessary financial pressure, while taking the Instant Personal Loan for your financial needs.
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Choose the ideal tenor for your personal loan for travel by following these steps.

Consider the tenors of existing liabilities

1. Ensure that you avoid taking a loan that has a tenor that coincides with that of other financial liabilities and obligations.
2. This will increase the burden on your income and make it difficult to repay the debt when the deadline approaches.
3. Make it a point to select a tenor that begins after you have cleared most of your other financial liabilities. This will also benefit your credit score in the long run.

Analyse your financial prospects

1. Are you likely to be promoted soon? Or are you due to receive a bonus? Plan and understand where you foresee yourself as the tenor of the loan progresses.
2. It is important to ask these questions because the higher your income, the easier it will be able to clear your loan. You can part prepay your loan or increase the EMI you pay with an increase in your income. This way you can repay your loan quicker and pay lesser interest overall.
3. Also consider other methods of increasing your income such as boosting returns from investments. This can lower the difficulty associated with repaying debt.

Additional Read: How to Find the Right Personal Loan for You

Review your monthly budget

1. Analyse all your monthly expenses in detail. This can help you see what portion of your income is available to pay EMIs after your fixed expenses are taken care of. Ideally, your EMIs should allow you to save at least 15% of your salary for emergencies.
2. Once you arrive at the amount, you can select a tenor accordingly. This will guarantee that you are able to make the payment comfortably and without any delays.
3. Making a budget also helps you cut costs. This can be done if you want to opt for a shorter tenor and pay higher EMI so that you can clear the loan quickly.

Personal Loan - Everything you should know

Use an EMI calculator to forecast the monthly outflow

1. The EMI calculator is a simple tool that lets you forecast the EMI that you will be paying. It has a user-friendly interface that offers smooth operation.
2. It shows you how your EMI will vary with changes in the interest, tenor, and principal.
3. This makes it one of the quickest ways to arrive at a suitable tenor. Use a personal loan EMI calculator to get error-free results instantly.

Additional Read : 5 Mistakes To Avoid While Applying For a Personal Loan

Revisit your financial plan

1. Analyse your yearly income and calculate any bonuses that you expect to come your way. Also check when you are due for your yearly appraisal, and take it into consideration too.
2. Calculating these increases in your income will also help you choose the right personal loan tenor.
3. It will also help you to make prepayments with excess funds and help you maintain a good credit score.

Flexibility when selecting a tenor is an important feature that your loan must offer. Apply for a Travel Loan with Bajaj Finserv to enjoy a tenor that suits you. Apart from this, you can benefit from attractive interest rates, a line of credit and speedy approval and disbursal.

The content of this document is meant merely for information purposes. The personal loan features mentioned in this article are subject to updation, completion, revision, verification and the same may change materially based on policy revisions. For more details, please visit our Personal Loan terms and conditions page here.

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