10 Ways to Manage Your Personal Loan Easily

0
personal loan

With lifestyle changes or when confronted with a sudden medical emergency, it does become a mandatory proposition for people to seek a personal loan of their choice. This surely helps them to get rid of the situation in a mature way but leaves behind a heap of duties and pending EMIs, requiring timely payments. 

In case you are stuck in a similar situation of any sort, just give this article a nice read and let the thing get over your head. Thus making space for other aspects which are also of equal relevance.  

10 ways to manage Personal Loans

Here we have combined 10 different ways how one can manage personal loans easily

Conduct proper research before taking a loan

Make sure that you are thoroughly contained with the entire process of a personal loan, before opting for one. Do make a thoughtful evaluation of your present situation and channel out all the odds simultaneously. Also, do not forget to conduct an appropriate background check of the shortlisted lenders, followed by a comprehensive comparison of the loan interest rates charged. Remember! Monthly EMIs are always negotiable. 

Indulge in timely payments

Making payments on time not only helps to get rid of that extra burden but also keeps you in the good books of your lender. Thus maintaining a cordial situation. Setup real-time loan reminders or you can also opt for automatic payment facilities and let the process flow off seamlessly.  

Stay safe from additional charges

Processing fees and prepayment penalties are mostly unavoidable when it comes to a personal loan. However, some organisations try to make this journey all more problematic by claiming additional amounts simultaneously in the form of additional charges. Do try to get a detailed overview of those and eliminate fraud before time.   

Prioritise loans and start with their payment process

Prioritising your needs solves half of the problem. Start paying off loans with the highest interest rate among all, Also, popularly known as the ‘Debt Avalanche method, this system turns out to be quite fruitful. However, do make sure that you are not missing out on the other EMIs.   

Accommodate a required amount of changes within your lifestyle

Well accommodated lifestyle changes will not only bring in seamless cohesion but will also help with quick loan repayment, resulting in economical stability. Once you are committed to a personal loan of a particular tenure, planning gets mandatory. Do try to maintain a financial calendar of your own and make sure to avoid all sorts of drastic decisions when it comes to your spending habits. 

Repay debts with windfall gains

A significant amount of monetary assets is sometimes made available to us by our ancestors, resulting in Windfall gains. Which can be made of good use when it comes to prepaying the loan amounts sought. In case the lender is adamant about charging a hefty prepayment amount, negotiation is always an inevitable option that you can go for. 

Reconfigure EMIs with every increment you get

Always try to maintain a balance between the ongoing loan EMIs and the incurred income. Never hesitate to renegotiate (increase) the EMI amount with your respective lender as the income rises. This way you will be finishing off the amount payable before time and save on the extra interest too. 

Get an insurance

Life insurance not only helps with proper financial planning but also makes way for a healthy lifestyle in the near future. If possible, try to get a life insurance policy with your family as the nominee alongside a personal loan. This will not only promise a stable financial future but will also serve as a backup plan for your future endeavours. In, case you are opting for a money-back policy, the amount incurred will help you out with future plannings and applications for a personal loan of any sort.    

Opt for a thorough consolidation of the loan amount

Debt consolidation is quite popular among all, as a significant way to bring down the financial burden that comes with a loan. It is a two-way system, saving the borrower from multiple payments, besides bringing down the interest flow simultaneously. Thus, helping them to pay off the loan amount faster.

Sell off unrequired-assets to pay loans

You can always sell off properties or unused plots and reuse the amount in paying for a personal loan. In addition to reducing the maintenance costs of the unused asset, you will also be able to pay off the loan faster. 

When it comes to managing loans, a little planning and self-control can help to ensure seamless outcomes. Hopefully, the article clarified your thoughts regarding personal loans and their managerial propagation. If something went wrong with your previous loan application, try to have it reinstated in the next six months.

Evaluate your monthly income source and charged EMIs

In general, the payable EMI amount must not exceed 10% of the monthly income secured by an individual loan applicant. A higher rate of EMI will probably drain out the acquired savings, leaving behind a negative effect on the daily expenses. There are certain instances, where a borrower does claim to pertain 0% EMI scheme. But in reality, these types of schemes have a high processing fee when compared to regular loans. 

Check out for foreclosure charges and hidden subscriptions

Foreclosure charges are also popularly known as prepayment amounts. These are charged by banks or other financial institutes of any sort when the borrower tries to clear off the pending loan amount before the mentioned tenure date. This way lenders try to recover a negligible amount of the remaining interest rate they had expected to earn from the loan. Do make sure to check out the foreclosure charges and related clauses made mandatory by the bank/financial institute. Also, there are instances where people had to pay a hefty amount in the form of processing fees and foreclosure charges. 

With so many banks and NBFCs in action and so many clauses and requirements to be taken care of, it gets quite a hectic task for a first-time borrower to end up with the right decision. However, when availed of to serve the right reasons and genuine lenders are being finalised. the entire loan process becomes smooth and hassle-free.

LEAVE A REPLY

Please enter your comment!
Please enter your name here