Personal loans are a great financial tool to opt for to meet varied short-term big-ticket expenses or purchases. These loans are approved and disbursed quickly to better aid borrowers. Moreover, a borrower has complete freedom to utilize the funds availed in any way they want, and these loans are unsecured in nature; thus, borrowers don’t have to pledge any securities to avail them.
However, if not planned properly, managing a personal loan can lead to accumulated debts as well as below-par CIBIL scores. Thus, individuals looking to avail such loans can take help of a personal loan calculator to calculate loan EMIs in advance and plan their finances accordingly.
Consequently, they can follow these below-mentioned points to lower their personal loan EMIs.
1. What Is Tenor Role?
The Tenor play a critical role in EMI calculation. In case a borrower opts for a shorter tenor, he/she has to pay a higher EMI compared to a longer tenor option. Thus, borrowers looking to reduce their EMIs can negotiate with their lender to increase the tenor of their loan.
2. Paying EMIs On Time
Paying EMIs on time has two major benefits. They are –
- It positively affects their credit score. On the other hand, defaulting EMIs lowers a borrower’s credit score and affects his/her credit history.
- It incurs extra charges on EMIs as penalties and affects a borrower’s financial plans.
Thus, borrowers can take help of an EMI calculator to calculate the EMIs they have to pay against their desired loan amount. It will help them to plan their finances more efficiently.
3. Interest Rate
Existing borrowers aiming to lower their EMI payment can negotiate with their lenders for an attractive rate of interest. New borrowers can perform market research to compare interest rates of different lenders and then make a decision. Taking help of a personal loan calculator can give borrowers a better insight.
4. Part Pre-Payment
It is an excellent option for borrowers to lower their EMIs. Borrowers should check with their lenders to know the terms and conditions of part pre-payment, before applying for a personal loan. Making part pre-payment reduces the overall debt and subsequently reduces the EMIs.
5. Balance Transfer
Opting for a balance transfer is a crafty way to reduce the EMIs of a personal loan. It means transferring your debt from one lender to another. The primary objective of this method is to opt for a lender who offers better benefits like attractive interest rate, flexible tenor etc.
Before applying for a quick personal loan, borrowers should decide the amount they need to manage their financial expenses. Borrowers can take help of a personal loan calculator for this purpose.
Borrowers looking to avail a quick personal loan can get in touch with NBFCs like Bajaj Finserv who offer attractive interest rates, flexible tenors, and minimal documentation on their personal loan applications.
Apart from this, the company also provides pre-approved offers to make the personal loan application process seamless and less time consuming for their customers. These offers are available on various financial products like business loans and home loans. You can check your pre-approved offers by providing essential contact details like name and phone number.
Defaulting EMIs is not a good idea; it not only imposes additional debt but also affects a person’s creditworthiness as it affects the credit score. Thus, borrowers can keep in mind the above mentioned pointers to reduce their EMIs. Additionally to make their personal loan EMI repayment better and easier, they can take help of a personal loan calculator.