The moment we want to buy something to fulfil our dreams and find ourselves financially weak, we think to pally for personal loans. The best lenders for personal loans excite us a lot about short term personal loans. But we often forget the golden rules to repayment before we apply for personal loans. Quikkloan– a leading personal finance marketplace– brings to you the golden rules of repayment of the personal loan.
Choose comfortable EMI schemes
While you apply for personal loans, you must choose an EMI scheme that you are comfortable with for repayment of the personal loan. If you are repaying previous loans, then you must go for lower EMIs for the next personal loan. Most instant and easy loan providers will entice you for higher EMIs. But the best lenders of personal loans– like Quikkloan– will advise you to figure out what kind of EMI does not put you under pressure.
Your total EMI must not exceed 40% of your total monthly income. Repayment of the personal loan must never interfere with your normal or desired lifestyle. The best lenders of personal loans will help you with a personal loan EMI calculator to check your EMI. Don’t forget to check out the EMI calculator offered by Quikkloan.
If you are comfortable with high EMIs, then you can be at a serious advantage. Repayment of a personal loan with a lower number of higher EMIs will help you to repay with less outgo. The interest is a drain of your money and since loans are negative compounding, the higher the tenure, the more the drain of money in compound interest. Choose the best lenders of the personal loan who offer short term personal loan.
Never delay EMIs
The repayment of the personal loan must never face a delay in EMI payment. Having any delay in your EMI payment will affect your credit score negatively and this can reduce your creditworthiness. If repayment of short term personal loan is getting difficult, then explain the situation to the bank or the personal finance provider and get the number of EMIs increased with EMI amount lowered. Moreover, you can also transfer the existing loan to a new loan with a lower interest rate, thereby reducing the personal loan debt.
If you have got the extra disposable amount in your hand, then it is best to prepay the loan and get relieved of the debt. Repayment of the personal loan before the end of tenure helps in saving EMIs. Please note that some banks also charge penalties for prepayment. So, before you apply for personal loan, look out for best lenders for personal loans around you that charge zero or negligible charges for foreclosure of the loan. Most instant and easy personal loan providers may not tell you about foreclosure fees in advance.
You must apply for personal loans when required to fulfil your dreams. But tread cautiously and remember these golden rules for repayment of personal loans. Quikkloan can help you with tips on repayment of the personal loan in Delhi. For any queries, feel free to contact us.