Planning the repayment of your loan EMIs carefully and in advance can help you 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 loan with ease.
1. Have a dedicated account for repayment of EMIs
Create a cash reserve using your savings before you apply for a personal 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 pay the EMIs from a savings account dedicated to 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 when you sign the loan agreement. You can store monthly reminders in your email or smartphone calendar to avoid missing the repayment dates.
3. Choose your tenor wisely
The tenor you choose can impact the affordability of your loan. So, be smart and review various factors like your monthly income and monthly expenditure before deciding on a tenor. This can help you determine how much of your income would be available 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 you can comfortably repay. Select a Bajaj Finserv Personal Loan to gain from flexible tenors up to 96 months. This loan also offers various benefits like easy online application, instant approvals, and nominal interest rates.
4. Select the right lender
Before you decide on a loan, carry out 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. A reasonable interest rate always generates affordable EMIs. Further, check the rest of the 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 quickly 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 at no cost when you have the money and even re-avail the prepaid amount. This loan thus offers complete flexibility to you.
Implementing these four tactics can help you to repay your EMIs effortlessly. They will help you reduce your repayment burden and make it hassle-free while contributing positively to your credit score.
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