How to plan your personal loan EMI repayment better
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How to plan your personal loan EMI repayment better

  • Highlights

  • Create a cash reserve; pay via savings account or FD

  • Keep track of EMI deadlines by setting reminders

  • Choose the correct tenor to match repayment with income

  • Choose your personal loan lender wisely to get the best terms

Planning the repayment of your personal loan EMIs carefully and in advance helps you to avoid late payment charges and dips in your credit score. It also reduces the stress of organising finances at the last minute. Here are some tips you can use to repay your personal loan with ease.


1. Have a dedicated account for repayment of EMIs

Create a cash reserve using your savings before you apply for a loan. This helps you build a corpus of funds that you can use for paying EMIs. Use these funds to start a Fixed Deposit account or put them into a savings account. The monthly payouts from a non-cumulative FD can help you make repayments, or you could simply pay the EMIs from savings account dedicated for this purpose.

2. Keep track of deadlines

EMI payments have deadlines. Pay heed to them because missing even one payment can lead to EMI bounce charges and penal interest. The details of these deadlines are provided to you by the lender right when you’re signing the loan agreement. Store monthly reminders in your email or smartphone calendar, so that you don’t end up forgetting the repayment date.

3. Choose your tenor wisely

The tenor you choose can impact the affordability of your personal loan. So, be smart and review various factors like your monthly income and monthly expenditure before you decide on a tenor. This can help you decide how much of your income would be available to you to pay the EMIs. You can then use the personal loan EMI calculator to arrive at the most suitable tenor based on the EMI amount that you can comfortably repay. Select a Bajaj Finserv Personal Loan to gain from flexible tenors from 12 to 60 months. This loan also offers you various benefits like easy online application, instant approvals and nominal rate of interest.

Flexi Loan Explained

4. Select the right lender

Before you decide on a loan, carry out a thorough research of the market. Review various lenders and the interest rates they offer. Perform a comparative analysis to zero down on the lender with the most affordable cost. An affordable interest rate always generates affordable EMIs. Further, check the rest of the fees and charges associated with your personal loan. These can be processing charges, secure fees, annual maintenance charges, EMI bounce charges, etc. Ensure that you choose a lender who offers the lowest charges.

Additional Read: 5 Important Things To Know Before Taking A Personal Loan

Also check the cost of making part prepayments. Avoid lenders who charge you too much to repay your loan earlier than anticipated. Finally, look for lenders who offer you maximum flexibility. For example, Bajaj Finserv offers a Flexi Personal Loan to help you meet unpredictable needs for finance more easily and affordably.

Under this facility, you get a particular amount sanctioned to you for a specific tenor. You can make multiple withdrawals from this amount based on your needs. You only pay interest on what you withdraw, while the rest remains interest-free. This helps when you’re taking a personal loan for a wedding or travel, as last-minute expenses can crop up anytime. You can further choose to pay interest-only EMIs and pay off the principal at the end of the tenor. This helps you manage your cash flow better. You can also prepay funds when you have the money at no cost and even re-avail the prepaid amount. This loan thus offers complete flexibility to you.

Implementing these four tactics can help you to effortlessly repay your EMIs. They will not only help you reduce your repayment burden, but also make it hassle-free while contributing positively to your credit score.

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