A loan that’s availed is a loan to be paid. But you have to understand that repaying loans smartly will not only save you valuable time. But it will also help you save a good proportion of your hard-earned money. So when taking a loan, you should review your financial status. This way, you will know about building financial stability and improving credit scores,s and reducing debt obligations.
Also, know the personal loan rates being offered to know the loan amount you have to repay later. Here are five smart tips for you to repay your loan on time:
5 Smart Tips To Repay Your Personal Loan On Time:
- Get a personal loan balance transfer: if you are not happy with your lender. Or, if you have a credit card with a spending limit, you can choose a quick personal loan transfer. It can be used as a mode of repaying your loans off quickly. Also, make sure you never miss the EMI payments of your loan. Delay in EMI payments can cause penalty charges making your loan more expensive. Choosing a personal loan transfer as a payment mode can also close down your previous outstanding balance. And help you get a higher loan amount sanctioned at a more affordable interest rate.
- Repay your loans quickly on a higher interest rate: Personal loans are indeed needed when it comes to financing. But it can also lead you towards debt if you cannot pay within the given timelines. Always remember that when you reach personal loan eligibility, it can lead you to higher interest rates.
Keep your loans in order; make sure you repay your loans with higher interest first and then the rest. This is an intelligent way of repaying debts, prioritising the debt and their types. Additionally, the golden rule is. If you are looking for a personal loan, apply it at reputable companies like Fullerton India. Here you can get instant loan approvals if you meet their eligibility criteria.
- Foreclose your loan: Many take personal loans because of their financial shortage. And it also comes with interest along with a repayment tenure of 6-12 months. And when you are back on your financial strength, the loan repayment can cause you a burden with additional interest.
Therefore, it is best to foreclose your loan if you have sufficient funds to take this action. Foreclosing a personal loan is based on a profile and credit score of a person. Therefore, the person can repay the whole amount in one single payment instead of multiple EMIs.
- Consolidation of your debt: Another intelligent way of taking care of your ongoing debt is to have several loans in your name. With interest rates piling up and getting expensive, it is better to consolidate all your debts into a single payment. You can also use the Flexi loan facility to borrow and repay the money whenever you wish to. You will only have to pay interest on what you use as this is a cost-effective option.
- Reduce your tenure when possible: As your income increases, you can also reduce your tenure with it. If you have a long tenure, let’s say a home loan in this case, you can reduce your tenure with the rise in your income. This process will also increase your EMI marginally. But it will also reduce your overall interest payments on your loan. And that way, you can slowly but steadily be able to repay your instant personal loan cost-effectively.
Loans can keep you from doing many things. Having to repay many loans is a headache and a big tension. Follow the tips given above, repay and handle your personal loans wisely.