There are several simple ways in which you can monitor your EMI for a personal loan for travel. This will help make them easy to pay and more affordable for you.
Managing EMI involves paying them on time, ensuring they’re affordable, and planning for payment well in advance. When you manage your personal loan EMI, you stand to improve your credit score, which in turn ensures that you don’t face any rejections or have to pay a higher interest rate when seeking financial assistance. Not managing your EMI can put you at risk of defaulting and can severely impact your creditworthiness.
So, take a look at the several ways in which you can moderate the various aspects related to EMI for your personal loan for travel.
Avoid borrowing more than you can repay
When you borrow a loan ensure that the borrowed amount is in line with the cost of your travel. A slight surplus might seem harmless, but it can increase your monthly EMI significantly. This in turn makes repayment of the loan difficult. Hence, before borrowing a loan have a keen understanding of your financial ability to repay it and carefully arrive at the amount you need. This will help you manage your EMIs effectively and make payments on time. When you are not aware of what your final expenses will be, it may be more cost-effective to take a line of credit. This facility from Bajaj Finserv is called a Flexi Loan, and gives you a specific amount on a credit line for a chosen tenor, from which you may borrow what you need, when you need it. You pay interest only on the sum you actually borrow, rather than the whole amount extended to you.
Be careful when selecting a tenor
Tenor is the factor that directly influences your EMI. If you want to clear your loan quickly, the best way to manage your EMI would be to reduce the tenor. This way, each EMI payment will be high, but you’ll be able to clear the financial obligation much quicker. On the other hand, if affordability is key, pick a long tenor to lower your EMI. Choosing the right tenor is crucial for sound EMI management.
Take measures to ensure that EMI cheques don't bounce
If you default on your EMI, you are liable to pay extra fees and charges. This increases the cost of your loan. The fee is usually about Rs.1,000 for every EMI bounce and you may also have to pay penal interest. To prevent EMI bounces, be careful when writing your cheques. Ensure that you have written the lender’s name, amount, and all other details correctly. Also, be particular about regularly depositing funds into the account that you use for EMI payments. Insufficient balance is one of the most common causes for an EMI bounce. This will also affect your credit score negatively.
Additional Read: 4 Ways to Get Best Personal Loan for Travel Interest Rate
Plan in advance for repayment
Repayment of the loan is something that should be planned well in advance. Before you take a personal loan, ensure that you make financial provisions to pay your EMI. A smart way of doing this is by making investments that will give you regular returns. These can be diverted towards repaying your loan. One way you can do this is by setting up a non-cumulative fixed deposit.
Be mindful of deadlines
You will have a fixed date by which your EMI payments have to be made. Once you have the details with you, take necessary steps to set reminders. This will help you make payments on time, without any last-minute panic.
Pick a lender with affordable interest rates
Finally, to ensure that your EMI is affordable and easy to tackle, begin with picking a lender that offers a nominal interest rate. Before you sign the dotted line, thoroughly analyse various lenders and the interest rates associated with their loans. This will also save you from paying hefty EMI that are charged by lenders with floating rates of interest.
EMI management helps you get the best out of your borrowing and lowers stress significantly. It also helps increase the lender’s trust in you and makes receiving pre-approved offers easier. Once you use the Personal Loan EMI calculator to estimate your EMI, you can apply for a Personal Loan for Travel with Bajaj Finserv. Here you can benefit from a nominal rate of interest, funds in bank within 24 hours, instant approvals, and more.
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