How to Manage EMI for a 3 Lakh Personal Loan?
If you urgently need funds, the first thing you think about is taking out a loan. Personal loans are quickly available with an easy process. It has minimal paperwork, and banks take no security. Personal loans are the best way to cover urgent finances. Many financial firms provide easy loans that can be used to cover unexpected expenses such as your children’s studies, a wedding, or a family/luxury trip. For short-term needs, an apt loan is a Rs 3 lakh loan. It can fund your immediate needs. Moreover, it will be easy to repay the same. More than 90% of loans are paid back through EMIs. It is the most common way chosen by most applicants. This article will guide you on how to manage personal loan EMI.
Ways to Manage Personal Loan EMI Payments
To apply and get a loan is quite easy for many people. The difficulty arises when every month, you need to repay. It is a fixed amount of your loan with interest that forms an EMI on a personal loan. Most people tend to delay the payment of EMI of personal loans. It may be due to the daily routine that makes them forget or delay payback. But this is not a wise financial move. Any missed payments on your personal loan EMIs might have an adverse impact. It may hamper your future funds and budget needs.
Below are a few tips to manage personal loan EMI that will assist you :
Check Your Capability for Repayment
Knowing your loan payback ability is a must. Make sure you are fully aware of the personal loan interest rate. Also, make note of lenders’ payment options. It will help you manage your budget and sort out the EMI for the personal loan. Additionally, several lenders have online EMI calculators for personal loans. These online systems allow borrowers to know their EMIs quickly. It will prepare them for paying their personal loan on time. If you know your ability to repay a loan before applying, it will help you in making wise choices.
Make Sure You Save Enough
You must have enough money in your account to stabilise your funds. These savings could be useful if a need arises when you are unable to repay your personal loan EMI. These savings can be saved in the form of gold, stocks and FDs. It will help to pay your EMIs on time quickly. These savings can also serve as a backup plan. When you need urgent funds, like paying for any health issues, you can make use of such savings. This will prevent you from any blockage in paying EMIs or other expenses.
Post EMI Payment Reminders
Setting up monthly reminders to notify you whenever the EMI payment date is due is crucial if you want to ensure that you don’t forget to make any of your EMI payments. You may make sure you have enough money in your bank account for the EMI amount to be deducted with the aid of these reminders. Additionally, you can arrange to gather the payments ahead of schedule if you don’t have enough money to cover your EMI.
Plan Your Expenditures
The recommended range for your EMI payment is between 50% and 60% of your monthly paycheck. The aforementioned percentage range guarantees that you can handle your other daily expenses without making any sacrifices. However, any EMI amount that deducts more from your salary than the aforementioned range can significantly impact your monthly spending plan. Additionally, most of the demands you make will reduce your income. This does not, however, imply that you must sacrifice your way of life. However, it is important to reduce any excessive and pointless spending when you are responsible for paying back a loan.
Keep Your CIBIL Score High
A borrower’s ability to pay is determined using their CIBIL score. It is a three-digit score that tracks your credit history in the past. A CIBIL score of 700 or more is taken as an excellent score. Such CIBIL scores make it simple to approve borrowers for a personal loan. Additionally, a borrower who has a high CIBIL score is eligible for low-interest personal loans. Additionally, a high CIBIL score demonstrates your integrity to the borrower. Therefore, the loan provider may grant the borrower’s request to extend the loan term or the due date if the borrower has a good CIBIL score and a history of timely payments.
Choose a Longer Loan Term
Your personal loan’s term and EMI payment are inversely connected. Less EMI is paid when the loan term is longer and vice versa. Therefore, you might choose a longer loan term when applying for your personal loan. It will not burden your pocket in the future. By doing this, you might be able to lower your EMI payment and better manage your monthly spending plan.
It’s crucial to pay your personal loan EMIs on time. Payment also depends on the terms of the agreement with the lender. The borrower may also be required to pay some late fees or penalties. Therefore, it is advised that you, as a borrower, carefully follow the ways to manage your personal loan EMIs more effectively.
Conclusion
You can take out a personal loan to cover any short-term expenses. It can be used for many different purposes. A personal loan can be a trusted tool to get some money. Interest rates on personal loans are typically higher than those on home loans or auto loans because they are unsecured. You must therefore be well aware of your funds in advance. Also, you should plan your funds in such a way to timely pay personal loan EMIs. For more details on 3 lakh personal loans and their EMIs, visit the Piramal Finance website and get assured assistance.