Financial needs vary from one person to another whether it be for paying medical bills or your child’s education. Money is needed in every aspect of life, and each and everything can’t be fulfilled only through savings. People usually take loans to meet their financial requirements, it may be a home loan for getting a home, car loan for a car, and a business loan to accomplish your business capital requirement. There are certain situation as well where the requirement and personal at that time personal loan is the true survivor for you. It is totally unsecured and can be used according to your requirements and needs.
However loans helps you to survive in your tough time and you must feel relaxed and happy at the time you get it sanctioned, but repaying a loan is a tough thing to do. It requires a proper management your money & finances to pay the EMIs on time.
It is also a fact that many of us are so caught up with our daily lives that we ignore our financial priorities. We don’t fix budget, miss out our loan repayments, and miss the due-date of our credit card bill payment, and overspend than planned. These things leads to a negative impact on our credit score as it can fall down even when we miss a single EMI. Having a good CIBIL is very important as it decides your credit worthiness. What if you experience a financial emergency at this time? Borrowing from colleagues? Borrowing from friends & family? These are the only option left in this situation. To avoid situation like this it is always important to pay the EMIs of your previous loans on time, so that you can have a good credit worthiness. Here we are providing you some tips to manage your personal loan EMI.
Tips to Manage Your Personal Loan EMI
It is rare nowadays to come across a person who is not stressed about EMI payments and credit card payments. Although there is nothing wrong in taking a personal loan to get your requirements fulfilled, but it is equally important to efficiently manage your finances. Managing one’s personal loan EMIs can be easy if you follow a financially disciplined life.
Before you apply for a personal loan, always use a Personal Loan EMI Calculator to calculate your personal loan EMI. This way you would have an idea in advance about how much your loan will cost you monthly. So that you can check with yourself whether you can afford it or not? If you can’t afford to pay that amount monthly don’t go for higher loan amount. Apply for the loan amount wisely that you can repay easily.
Before applying for any loan first check that the amount you would be repaying as EMIs regarding all your loans, their sum total should not be more than 50% of your monthly income. You should always have enough left from your salary, after having paid all the EMIs, that you can manage the necessities of the whole month.
Always do research whether it be online or offline before going for a personal loan. The online availability of rates by different banks has made it even easier to compare. There are many portals available by banks and DSAs to compare the interest rates of personal loans offered in India. Choose your lender accordingly. Be a smart borrower and choose your loan wisely according to your needs.
A good credit score can help you to get a loan at comparatively low interest rate and best offers. A low interest rate means low EMI hence it has lot of value. So, always try to maintain a good CIBIL Score so that you can get a loan at low interest rate.
It’s always important to save for a rainy day. There can be instances where there is an unexpected expense. This can spoil your financial plans and can affect your repayments.
We can understand this by an example. If you have some one of your family member admitted in the hospital, and you are short on cash, you would need to spend the money, for paying the medical bills, which you have set aside for your monthly EMI. In a situation like this you need to have some backup or a contingency fund. If you don’t, you can’t pay your EMI. This way you will be defaulting on your repayments. This can cause a dip in your credit score.
NOTE- Don’t delay and never miss an EMI.
Paying the EMIs on time is very important. Even if you delay or miss an EMI payment, it can result to pay extra charges and penalties. Another important this is that the credit score will also go down. With these tips will help you manage your EMI.
