Man using calculator
Personal loans can be a reliable financial tool that you can use in times of financial emergency. You can apply for a personal loan to cover expenses such as weddings, debt consolidation, home renovation, travel, and education. When applying for a personal loan, your goal is not to burden yourself with debt but to solve your financial problems.
Although it might seem simpler to be approved for a personal loan than to make the financial commitment of getting credit, efficient financial management is essential. All borrowers should follow these tried-and-true rules to make personal loan repayments smoother and easier.
These golden rules will make personal loan management much easier.
Only apply what is necessary.
The internet and technology have made it easier to obtain loans. Clix Capital, a lender that offers personal loans up to Rs 25 Lakhs, is generous enough to offer them. However, you don’t have to take out the largest loan amount. You will have to repay the loan amount and pay the interest rate. You should identify the purpose of the loan and determine the best costs. A buffer can be kept to help you arrive at the loan amount. You should carefully calculate the amount and determine if it meets your needs. You shouldn’t use the loan amount for any other purposes than those listed. Assess your needs first, and then apply for the needed loan amount, but not less.
CHOOSE YOUR LOAN TENURE WISELY
You may choose a longer loan term as a borrower. The reason is that the EMIs you pay each month will be lower the longer the tenure. Even though your EMI amount will be lower, you will still end up paying more interest over the loan term. While a shorter loan term may result in a higher EMI, your total interest expense will decrease, and your debt will be paid off sooner.
On the other hand, if your loan term is shorter, you will pay higher EMIs. Although you might save a lot on interest, a shorter loan term with a higher EMI can cause significant financial strain.
You can find the right balance by using a personal loans EMI calculator to get a loan term that is both affordable and not too costly.
USE AN EMI CALCULATOR FOR PERSONAL LOANS
The personal loan EMI calculator can be used to calculate the EMI you will need to pay if you borrow a certain amount of money for a given period. You can choose a loan term that suits your repayment capacity by estimating the monthly EMIs. Calculate your EMIs to ensure they don’t consume more than 30%-40% of your monthly earnings. These are the steps you need to follow to use the personal loan EMI calculation calculator.
- Slide the bar to enter the amount of the loan you require
- Slide the bar to enter the EMI amount that you can pay conveniently
- The system will show you the top 3 loans available to you, along with EMI, loan term, and interest rates.
- Choose the EMI plan that best suits your needs and apply.
SEEK OUT YOUR CREDIT SCORE
Lenders require a minimum credit score of 725 to approve your loan application. You get a 3-digit number between 300-900 based on your credit history, repayment habits, and other factors. Low credit scores can indicate that you aren’t a responsible borrower, and lenders might view you as high-risk.
SETUP AUTOMATIC EMI REPAYMENTS
It is easier to delay or skip EMI payments while you are busy with your day or in financial trouble. The amount builds up, leading to a decline in credit scores and unneeded penalties. The best way to solve this problem is to set up automatic EMI payments from your bank account. You don’t have to remember to pay for it. Your EMI amount will automatically be taken from your bank account every month. There is no way to delay or miss payments.
