Life is full of uncertainty and we can’t always plan for unforeseen event. Building an emergency fund is crucial, but sometimes it’s easier said than done. Whether it’s any medical emergency, refurnishing your house, a wedding in the family or even consolidating credit card debt, a personal loan comes handy and behaves just like a life savior.
Personal Loan is an unsecured loan, means there is no need to pledge any collateral and hence it is an ideal option for both salaried and self-employed people.
In the market a large number of banks and financial institutions are present which offer various personal loans to the individuals at attractive interest rate based on the applicant’s creditworthiness and income. Any individual with a good CIBIL score or credit history and regular income can apply for the personal loan.
Personal Loan is an unsecured loan, means there is no need to pledge any collateral and hence it is an ideal option for both salaried and self-employed people.
In the market a large number of banks and financial institutions are present which offer various personal loans to the individuals at attractive interest rate based on the applicant’s creditworthiness and income. Any individual with a good CIBIL score or credit history and regular income can apply for the personal loan.
How to manage your personal loan EMI?
One can easily apply for the personal loan, but the repaying it in the form of EMIs (equated monthly installments) is the big thing. Here are some ways by which one can efficiently manage his or her monthly installments-
- Before applying for a loan always check that the amount you would be repaying as EMIs regarding all your loans, their sum total should not be more than 50% of your monthly income.
- The first and foremost thing to manage the monthly installments, one should know the value or amount of the EMI and for this you can use a Personal loan EMI calculator to find out how much your loan will cost you each month.
- Do not delays in EMI payments, as it result in penalties like late payment charges and which may affect your CIBIL or credit score. So, be extra cautious and disciplined when it comes to paying monthly installments and try to pay EMIs on time.
- Try to maintain a good credit score to get good deals and offers on your loan and EMI. To maintain a good credit score you have to repay your loan on time. Another way of improving your credit score is to maintain a balance between secured and unsecured loan. Because good credit score helps you to get a loan at comparatively low interest rate and low interest rate means low EMI.
- Before applying for a personal loan always Research whether it be online or offline. Compare the interest rates of personal loans offered by the different banks and financial institutions. Assess your financial needs and your loan repayment capability and accordingly, choose the loan with fixed rate or a flexible repayment option or loan tenure.
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