Whether you have applied for a personal loan to fund your education, vacation, home renovation, wedding, medical emergency, or debt consolidation, you have to repay it in EMIs. However, managing your EMIs is something you must do regularly without putting any pressure on your finances. Regular EMI payments will help you pay off your loan on time and also improve your credit score. Let us look at a few ways to ensure that you never miss your loan EMIs.
Consider Your Financial Obligations
First of all, make a list of your debts, credit cards, and existing loan EMIs. Add them all and ensure that their total does not exceed more than 30-40% of your monthly salary. If this amount is more than 40% of your paycheck, you may consider opting for a longer loan tenure to keep your EMI amount low.
You may use a personal loan EMI calculator to know how much EMI amount you will need to pay for a particular loan amount for a specific period. If you are not comfortable with the EMIs, you may reduce the loan amount or prolong the loan tenure to reduce your EMIs.
Think Before Borrowing
These days, it has become effortless to avail easy personal loans. You need to fill up an online loan application form and get your documents verified online to get instant personal loan online approval within 15 minutes*.
Whether a wedding, vacation, travel, medical emergency, home renovation, or debt consolidation, you can cover all the related expenses using a personal loan. However, you must stop and think before applying for a personal loan. Take a loan only if it is essential and take the minimum amount to cover your expenses. After all, you would not want to pay an interest rate on an amount that you never used to cover the costs required. So, think twice before applying for a personal loan to keep things within your budget.
Opt for a Longer Loan Tenure
If your monthly budget is constrained, you must choose a longer loan tenure for your repayment. Longer term may lead to smaller EMIs, which you may easily adjust in your monthly budget. Use a personal loan EMI calculator to get an estimate of your EMIs and accordingly choose a tenure with EMIs that you are sure you can afford every month. Apart from that, whenever you get a salary hike or bonus, pre-pay a part of your loan to make its repayment easier.
Maintain a Credit Score of Above 725
A credit score of 725 or above means you may get a better loan offer with easier EMIs. The higher the credit score you have, the lower the interest rate you may be offered, and the easier it will become for you to pay higher EMIs within a short loan period. Stay consistent with your credit card bill and loan EMI payments, diversify your credit profile, prolong your credit history, and keep your debt-to-income and credit utilisation ratio down to improve your credit score and maintain it above 725.
Compare the Lenders
Almost all of us have access to the helpful power of the internet. You may use its potential to compare lenders and look for a loan offer that best suits your requirements and budget. Look at the loan offers from different lenders and compare them based on their loan amount, interest rate, repayment terms, and other factors.
Since each person has unique financial conditions, one size does not fit all. So, do some online research and find the one that has EMIs you can easily afford. By doing this, you can be sure that you will never miss your personal loan EMIs even during a financial crunch.
Keep Some Money Saved
To ensure that you never miss your personal loan EMIs, you must keep some money saved so that you can continue with your repayments even during a financially challenging period. Continuing your EMI payments on time will save your credit score from dipping, which will be helpful if you plan to take another loan in the future to cover any expenses.
One cannot ignore the importance of paying loan EMIs on time, as it not only saves you from extra penalties and charges but also prevents your credit score from going down. Using the tips mentioned above, you can manage your EMIs better and ensure that you never miss any of them.
Are you looking for easy personal loans to cover your expenses? Apply for an instant personal loan online from Clix Capital now and get your approval in as little as 15 minutes*. Take advantage of our easy eligibility conditions and minimal documentation requirements to get the funds you want instantly. You may use our personal loan EMI calculator to get an estimate of your EMIs and choose a loan term with the EMIs you can easily afford in your monthly budget.
You can also reach out to us at firstname.lastname@example.org or call us at 1800 200 9898
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