A personal loan can be availed for any reason whatsoever. Whether you want to meet expenses for an expensive gift or a home renovation, a personal loan is a good way to make payments possible. Taking a personal loan is easy too, and you can do this in a simple process online.
What is a Personal Loan?
A personal loan is an unsecured loan that you take for meeting expenses of any personal need you may have. Most banks and NBFCs offer personal loans for any reasons from requirements to pay for a marriage or fund an emergency expense like a health emergency. This is an unsecured loan and is taken without the backing of collateral. Hence, to be eligible to get the loan you want, you must show enough creditworthiness, with a good credit score. Lenders want to be assured that you will make repayments on your loan. Furthermore, you should do so in a timely manner, as if you miss a payment, you stand to become debt-ridden. While taking a personal loan, you will have to make repayments on the loan along with interest charged by the bank or any other lender. You should check the amount of repayments you will have to make with interest on your loan before availing a particular loan. You can do this by using a personal loan calculator, entering your loan amount, interest charged and the tenure of your loan.
3 Smart Ways to Make Timely Repayments
Personal loans can be availed for a maximum of Rs. 25 Lakhs, at interest rates that start at 14%. Moreover, you get flexible tenures of up to 5 years in which to make repayments. The most important aspect of your loan is the fact of making loan repayments with interest in a timely manner. Hence, it is important that you consider loan amounts before taking a personal loan. Furthermore, you should think about interest rates. These depend on your creditworthiness, loan amount and the loan tenure. Whatever your personal loan terms are, it is imperative to make timely loan repayments to avoid charges and most of all, debt. Here are 3 smart ways to make timely personal loan repayments:
- Use a Personal Loan Calculator – ‘Be prepared’ is the way to think in advance of taking a loan. Once you have decided on the loan amount, and a specific interest rate, you can determine how much you will have to repay per month, depending on various tenures, using a personal loan calculator online. In this way, you can decide on the loan amount and tenure and be sure you can make payments on time
- Prepay Loan Payments – In case you get a windfall, use these extra fund gains to prepay your loan. By doing this, you reduce EMIs and can manage your payments efficiently.
- Use Reminders – Often, people forget to pay off personal loans in a timely fashion. You can avoid this by making use of a pre-set withdrawal of funds to make loan repayments. This way, you don’t default on a loan payment and prioritize the use of funds too.
It is better to be prepared while taking a personal loan. With flexible loan tenures, you can choose EMIs that you are sure you can repay promptly and avoid debt and other unwanted charges tied to your loan.