In recent times, a personal loan is available through all the leading banks and NBFCs, and most people apply for it during their financial crises. From filling up the application to processing and getting the fund, making a personal loan is extremely easy and straightforward. Personal loans are unsecured loans that do not require any collateral or mortgage. Whether you plan to renovate your house, purchase a four-wheeler, or invest in education abroad, a quick personal loan will fulfill all your dreams. The thought part begins when it comes to personal loan repayment. Like any other loan, you can pay off it in monthly installments.
But sometimes, repaying the loan on time can be troublesome especially, when you are new to loans. But do you know that a personal loan can be one of the best ways to relieve financial stress and burdens when managed aptly? Besides, when you manage personal loan repayment responsibly, it improves the credit score as well.
Most of the time, lenders offer a fixed repayment schedule for the borrowers which means you need to pay fixed EMI every month. But few lenders offer flexible personal loan repayment plans. That is why it’s always better to check all the repayment plans before you make the final decision. If you’re having difficulty managing your personal loan repayment, then check out the below tips!
What is Personal Loan Repayment?
When you borrow a loan amount of your choice to meet your financial requirements, you should repay it over time along with interest. When you choose Buddy Loan, you can apply for a loan amount from 1000 to 15 Lakhs as per the needs for a tenure of 6 months to 5 years starting at 11.99% p.a. With Buddy Loan, you can always choose the flexible tenure plans as per your convenience and repay every month for the duration. Now, go through the below tricks to get a detailed idea of managing personal loan repayment.
Smart Tips to Manage Your Personal Loan Efficiently
Before you go for a personal loan, it’s highly essential to check your finance cycles as it plays a vital role in managing your loan repayment. Here are a few tips that you need to see!
Know Your Requirements
Usually, banks and financial institutes use various marketing tactics and offer attractive deals to attract customers and convince them to apply for a loan. But when you are really in need, go for it. Personal loans are a great form of debt especially during emergencies, else you can use them for big purchases, credit card consolidation, fulfill wedding or vacation expenses, and many more. Always know your requirements like where to put your loan amount and then plan accordingly. And once you receive the loan amount, use it in the right manner or you will end up with unwanted expenditure. In this case, you can have a separate account so that you can have a proper estimate. Make sure you keep a record of every investment and this will smoothly manage your finance.
Plan Your Budget
When you apply for a loan without knowing your monthly expenses, it can bring you unnecessary problems and impact your daily expenditure. So, always plan your expenses and make sure you have enough funds to pay your EMIs on time. Do proper research before taking a loan so that you don’t feel trapped in debt.
Repayment on Time
Make loan repayment as a priority. Once you receive the fund, you must repay the EMIs on time. A default in personal loan payment can affect your credit score adversely. Timely payments not only improve your financial health but also enhance your credit history. Sometimes, late repayment allows you to pay extra fees or penalties. Many lenders offer auto-debit from your account on a particular date and time. You can go for this option or set a loan reminder for every month.
Taking Another Personal Loan?
Managing several credit card payments or small/big loans at a time? You can opt for a second loan to pay off the existing loans but make sure the interest rate is lower than the existing interest rates. This will help you save more while managing the repayment procedure properly. Debt consolidation protects you from a debt trap and helps in improving credit history as well.
Note – Before obtaining a loan or signing the agreement, make sure to read all the terms and conditions of the lender to avoid future hassles. Be sure you don’t fall for any extra charges while repaying the loan. Identify your expenses that are unnecessary and can be cut down. In this way, you can save more and boost the financial condition. But never take a new loan until you pay off the existing one, otherwise, it can overburden your finances.
Unable to manage your finances and facing more difficulties? Get in touch with the financial consultants or experts immediately and look for the right and credible solution. Personal loans are designed to fulfill your requirements and repaying them on time will make your financial journey smooth and stress-free. Depending on your needs and personal loan eligibility, lenders will offer some customized loan solutions. Each Offer comes with a different repayment schedule and you can select the plan as per your ease and comfort, and manage your financial cycle properly.