Small Loans For Poor Credit – Ways To Get Small Poor Credit Loans

Many those who are searching for a financial loan don’t always need lots of money. Whether it’s money to keep you afloat before you next paycheck or perhaps a small loan to assist repay a personal debt, there are lots of lenders that are prepared to offer small loans for poor credit. These financing options are available in number of variations and therefore are deliver to different needs, so if you’re searching for small loans for poor credit, you’re sure to locate one that can help.

Small loans without credit report checks are frequently the ideal choice for those who have a bad credit score but nonetheless require a loan. These financing options are usually offered in amounts under $1000, and also the loan provider will often collect barely enough details about you to definitely make certain that you simply be capable of repay the borrowed funds. Lenders who are prepared to offer small loans for poor credit could be a valuable tool for those who have had past problems with credit. When you get yourself a loan, ensure that you repay it promptly so the loan provider will report your good payment history to credit agencies which will help boost your credit score. You’ll find lenders that provide loans without credit report checks by trying to find online credit companies specializing in small loans for poor credit.

Small vehicle loans for poor credit are an alternative choice that’s available for you. Getting a bad credit score makes it tough to obtain a loan that may help you buy a vehicle, but many individuals need a vehicle that can help them get back and forth from work and college. Finding small vehicle loans for poor credit might not be as difficult while you think. If you’re prepared to invest in having to pay back financing, you will find companies available that may help you look for a small vehicle loan for poor credit. Spend some time studying different lenders and discover the things they can provide you before you begin looking for a vehicle. If you can to exhibit a vehicle sales lot that you’ve a pre-approved loan for any vehicle, you’ll frequently have the ability to negotiate for any lower cost around the vehicle you would like because the sales lot will not need to find financing for you personally.

Small loan rates for poor credit are frequently greater than rates provided to those who have a good credit score. Because of the many lenders offering small loans for poor credit, you will notice that you’re still capable of getting financing having a competitive rate despite credit troubles. When you really need small loans for a bad credit score, don’t avoid searching for a financial loan simply because you believe your credit report could keep lenders from loaning you cash. Rather, concentrate on locating a loan with terms and rates that you could afford. Once you discover a business that provides small loans for poor credit, you will notice that after having to pay off financing, the organization will frequently be prepared to combine money they’ll lend you.

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SBA Loan Disbursement Process

When most business owners become aware of the benefits of an SBA loan, they become eager to know more of the processes they need to go through to get the loan. In this blog post, business owners will learn about the SBA loan disbursement process.  

The first step that needs to be taken for the SBA loan disbursement process is to apply for the loan. One of the most vital parts of this process is the application. If they do not get the SBA loan application right, it might reduce their chances of eventually getting the loan.  Here is the proper way to apply to get the SBA loan disbursement process right.

Step 1:

They should ensure that the SBA has formally approved their location on their official disaster declaration list. As soon as it is confirmed that their location is part of the areas that have been declared for the SBA loan, then they become eligible to participate in the loan application. This stage is very important, it will prevent interested business owners from wasting their time.

         Step 2:

Once they are certain about their eligibility, the next thing to do is to apply for the loan. There are different ways this loan can be applied. The loan can be applied by mail, online, or onsite. But if they want to go through the fastest route, I will recommend you apply online. And aside from the fact that they will get attended to faster when they apply online, it is a safer method in a time like this where covid 19 cases are on increase on a daily basis.

         Step 3:

If the SBA loan is applied online, it will take about 30 to 40 minutes to fill out the application. When filling the application form, proper attention must be given to avoid mistakes.

         Step 4:

After the application has been sent to the SBA, one of the first things they will inspect is the credit score and the property or the machinery used as collateral.  The SBA has a loan officer who will ensure that the insurance payments and credits were well paid by the applicant before he/she confirms your eligibility. This stage is one of the most challenging stages for most business owners who do not have a good credit score in the past. To avoid being disappointed, the participant should ensure they have a good credit history.

        Step 5: 

This stage is the decision making by the SBA. It can take the SBA two to four weeks to make their decision. If the SBA approves the application they will send the loan closing documents for the applicant to sign.

        Step 6:

After the loan closing document is signed, the applicant will receive his/her first loan disbursement within five days of closing. Depending on the amount of loan that was applied, the SBA will make an initial disbursement of a percentage of the loan. Then the next thing they need to do after the first disbursement is to get a case manager to aid them to meet up with all the conditions that come with the loan and then schedule for the remaining part of the loan.

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Personal Loan Application Mistakes to Avoid

Personal loans are the most sort after financial aids because of their flexibility. They can always come to your aid when things get tough. They also give you the freedom to use the funds as you wish.

Many people opt for personal loans to sort out their financial emergencies. For this reason, many tend to overlook important things.

Keep in mind that when mistakes happen in the application process, you risk getting your loan application denied. You can also expose yourself to substantial financial risks.

To avoid being a victim, here are some personal loan mistakes to watch out for.

1.  Taking a Personal Loan before Reading the Fine Print

Because of financial emergencies, many people take personal loans without going through the fine print. If you’ve taken the same type of loan before, don’t assume that the fee that applied last time is still the same.

Personal loans attract additional charges like pre-closure, processing fees, etc. You might also incur penalties for a bounced check, late payment, and tenure extension.

You should check everything, including the documentation requirements. Take your time to read the fine print and understand all the requirements before you proceed.

2.  Not Checking Your Credit Report

You need to review your credit report before applying for personal loans to identify if there are any errors on time. If you find errors, you should correct them on time so that they don’t affect your borrowing capacity.

Usually, lenders go through your credit history to determine your creditworthiness. Anything below 750 will get your loan rejected or expose you to stricter terms. Always ensure you have a strong credit report to improve your chances of qualifying for a good loan.

3.  Making Late Payments

Making late payments on your personal loan is one of the ways you expose yourself to financial stress. Late payments will increase your loan amount and negatively affect your credit score.

To ensure you don’t miss on your personal loan payment date, set automatic billing that allows automated deductions from your checking account. Make sure you have some reminder so that you do not miss the payment dates.

4.  Not Shopping Around

Financial institutions don’t offer the same loan payment period or terms. You need to take your time to shop around for different alternatives and only settle with the best deal.

You must ensure you work with the best financial provider to be happy with your loan. Compare loan terms, monthly fees, and APR among several providers. Ask your provider for a personal loan calculator to help you understand all the fees and the terms involved.

The Bottom Line

Loans don’t have to be intimidating if you take your time and avoid making silly mistakes. A personal loan is supposed to be some form of financial relief and not a burden.

But this will only happen if you take your time to shop for the best loans from the best lenders. Understand everything involved in the loan application process so that you avoid making costly mistakes that can make your loan unbearable.

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Good news for rural loan seekers as CSC ties up with TransUnion for CIBIL score

An individual’s CIBIL score or credit score is like a financial report card that contains a numerical representation of their repayment history. In India, the CIBIL score range is 300 to 900, anything above 700 is considered suitable for loans or credit card approvals. The score of 600 and below is deemed to be Poor, while the score of 800 and above is considered ‘Excellent’. A Credit score is one of the first factors checked by the lenders when they receive a loan application. A CIBIL score is the assessment of an individual’s creditworthiness to repay the loan and financial health which is used as an indicator for providing loans and credit services. Hence it is necessary to do a CIBIL check when applying for a loan.

However, borrowers from the rural sectors can avail a loan with ease as the IT Ministry digital arm, Common Service Centres (CSC) has now partnered with TransUnion CIBIL Limited to provide rural loan borrowers with a CIBIL Score through its network of over 3.61 lakh CSCs across India. This will allow individuals living in rural areas to access loans quickly for their entrepreneurial and personal requirements. A good credit score can also be used by a customer to negotiate for a better interest rate on loan.

What’s a Good Credit Score?

When you apply for a loan, you need to have a good credit score. A good credit score is a reflection of excellent financial history. Before granting a loan, the lenders look through the applicants CIBIL report and compare the credit history of the past three years in the calculation of your credit score. Other factors like your credit utilization ratio, outstanding loans, loan servicing term and percentage of unsecured loans will impact your credit score. Generally, the credit score range is between 300 and 900, wherein score closest to 900 is considered an excellent score to avail loans on a lesser rate of interest from lenders.

High CIBIL Score

An individual’s credit score can range anywhere between 300 and 900; the score usually depends on their credit behavior. Having a score closer to 900 can increase your chances of getting a credit card or easy loan approvals. A good score is quite beneficial for a borrower while applying for a loan, as the lenders give more preference as they are assured with a high score and approve loans to such borrowers.

Low CIBIL Score

When applying for a loan, a borrower with low credit score might find it hard to find lenders that offer a loan, if managed to find one the interest rates that are provided by the lenders tend to be on the higher side. However, the low CIBIL score category is different for every lender. While most banks and lending institutions turn down borrowers with a poor credit score, terming them as less creditworthy and having higher credit risk. Most NBFCs and other financial institutions approve loans for individuals with a low score but will charge higher interest rates on loans.

How to Check CIBIL Score Online?

Banks or financial institutions are not the only ones who can procure their CIBIL report. An individual too can check their CIBIL score online and get the Credit/CIBIL report. Mentioned below are the steps to do a CIBIL checkonline:

Step 1: Click on the ‘Get Your Credit Score’ or ‘Check my CIBIL score’.

Step 2: Fill in the details relating to your PAN and identity proof etc.

Step 3: Click on ‘Proceed to Payment’.

Step 4: Once you’re redirected to the payment gateway, make the payment.

Step 5: Your CIBIL report and score will be sent to your email ID within 24 hours or to your shipping address if you opt for a hard copy.

Check CIBIL Score by PAN Card

You can check CIBIL score by PAN card and some necessary details. The CIBIL score can be checked with the following steps mentioned below.

Step 1: Visit the banks official or NBFCs website, click on “check CIBIL score“.

Step 2: Enter your name as per the PAN Card along with the PAN card number

Step 3: Mention all the required details correctly

Step 4: Enter all the contact details such as your email address, residential address and contact number.

Step 5: Read through to the terms and conditions carefully and click on the submit button.

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Nine Financial Lessons to Learn from Navratri Festival

India is home to diverse cultural festivities and religious carnivals, and none is more enchanting and gripping than the country-wide celebration of Navratri. True to its traditional ethnicity, Navratri is about Goddess Durga’s nine nights’ long battle against a demon. And the tenth day, known as Dussehra or Vijayadashami, celebrates the triumph of good over evil.

This is also the perfect time for you to revisit, introspect, and take control of your finances. You can take inspiration from Navratri to work on self-discipline, and get rid of debts to eventually improve your personal loan eligibility. Learn to save money and stay informed about your finances for consistent growth in your life.

Navratri can teach you basic virtues of life which can help you turn your financial situation around. Here are nice financial lessons that you can learn from the Navratri festival.

Be disciplined about finances

Managing your hard-earned money with caution is crucial. Not only do you save money, but it also helps your financial credibility which increases your chances of getting a personal loan. 

Stop creating new debt

By engaging yourself in a regular budgeting exercise, you will not exceed credit card limits, avoid debts, and pay off your bills on time. All these hugely influence the personal loan interest rates that you will be offered whenever you seek a loan.

Plan and set goals

Start planning your finances for the next 2-5 years. Assess financial prospects and take a personal loan accordingly. In this way, you can buy a house, pay off important debts, fund educational expenses, or get yourself a new car while ensuring that interest rates stay low.

Use extra income with caution

Loans are the most convenient loan instruments for salaried individuals. If you have a regular income and are supposedly due for a hike in the coming days, then make use of the disposable income by accommodating a higher EMI every month. Utilise the personal loan EMI calculator available online to make smart decisions.

Stay focused on your plans

After making plans for your financial future, don’t get distracted otherwise you can lose track of your finances. Follow strict financial discipline so that your creditworthiness stays consistent, and boosts your eligibility.

Diversify your portfolio

While ensuring a regular flow of income, engage yourself in investment planning and building a creative investment portfolio with loans and credit cards. Look for opportunities to invest in the market.

Increase your financial knowledge

Use this time to teach you that you still have so much more to learn. Conduct extensive research and acquire a deeper understanding of the market and your own investments. Review them from time to time.

Take loans responsibly

Banks and financial institutions offer festive loans during Navratri with low-interest rates and processing fees, and you should apply for one if you have immediate big purchases to make. It is, however, advisable to not go overboard with the shopping as the loan needs to be repaid on time to avoid debt traps.

Seek advice from experts

The market can behave unexpectedly and investments can go wrong, so it is in your best interest to seek professional financial advice from experts regularly.

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Things To Do While Closing A Personal Loan

Availing a personal loan also means that you need to close that loan within a specific period to avoid any late penalties. Paying off the loan with the highest rate of interest first, this will help ease the financial burden. If you have availed an instant personal loan, you need to prioritize closing the personal loan early or else it can increase your debt burden.

1. Pre-closure charges

Most banks and lending institutions charge a foreclosure fee/penalty when borrowers decide to repay the loan before the tenure. While in case of home loans, there is no penalty levied, vehicle loans and personal loans do invite prepayment penalty, which ranges from 1% to 5% of the outstanding balance before the pre-closure. The pre-closure charges on Bajaj Finance Personal Loan is 2% of the amount paid to exceed 25% of the principal outstanding for the year. 4% of the principal outstanding as on the date of foreclosure and 4% on the total amount withdrawn as on the date of preclosure.

  1. Obtaining NOC

A NOC or No Objection Certificate acts as a proof that you have cleared all your dues and there is no outstanding loan on the account and the lender does not have any more legal right on collateral or documents given.

  1. Obtain all your original documents

While sanctioning loans, banks take some important documents like sale deed, conveyance deed, Power of Attorney, cancelled cheque, etc. So while closing the loan, you must take back all the essential documents which you had submitted earlier.

  1. Removal of Lien

Many times the lender puts a lien on the property of the borrower to refrain him from selling the property. Thus, after your home loan repayment, you must visit the registrar office along with the bank officer to remove the lien against your property. In case of a vehicle loan, you need to visit the regional transfer office to complete the hypothecation removal procedure.

  1. Ensure updation of your CIBIL Score

It is the duty of the bank or the financial institution to update your loan repayment action in the CIBIL database. “But many times banks delay in this process, and due to this, the borrower’s CIBIL report shows outstanding balance despite paying all dues. This might create a problem in applying for a new loan.

Documents Required Closing A Personal Loan

  • The loan account number mentioned on the loan statement.
  • The borrower’s identity proof such as Aadhaar Card, Passport,
  • Voter ID card, etc.
  • Documents like a personal loan approval letter, loan account statement and other such documentation issued by the lender.
  • Loan EMIs paid till date.
  • Cheque or demand draft.

Regular Closure Of Personal Loan

  • Step 1: For a regular personal loan closure, you need to pay a stipulated amount and number of EMIs for personal loan repayment.
  • Step 2: You need to inform the bank that you’ve reached the end of the loan amount to verify the claim.
  • Step 3: Submit your ID proof, loan account number and a cheque if you have any outstanding dues. The submitted documents will go under verification by the lender before the closing of the loan.
  • Step 4: The final step is to get a No Objection Certificate (NOC) from the bank or financial institution; this will serve as proof of regular loan closure by full repayment of the loan.
  • Step 5: You can also get in contact with the customer support team regarding the closure of your loan account.

Pre-closure Of Personal Loan

  • Step 1: Personal loan pre-closing procedure remains the same wherein you inform your lender to check the outstanding loan amount for loan repayment.
  • Step 2: Submit all the required documents along with the information regarding personal loan EMIs and a cheque to clear any remaining dues.
  • Step 3: Some lenders might charge penalty charges on prepayment of the loan, which has to be settled along with the loan amount.
  • Step 4: Once all the formalities are completed, the loan account is closed, you will be issued an acknowledgement letter with the details of clearances. This letter will be preserved as proof of pre-closure of the loan.
  • Step 5: The borrower can also procure a No Dues Certificate (NDC) from the financial institution.

Also, you can download our Finserv MARKETS personal loan app and apply for a personal loan in quick and easy steps.

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5 Things You Should Consider Before Co-Signing a Home Loan

Are you planning on co-signing a home loan agreement? Make sure to consider the following things before closing the deal.

How Does Co-Signing a Home Loan Work?

If a home loan applicantdoes not qualify to meet the financial obligations of a home loansuch as house loan EMI, down payment, etc. – lenders can ask for a co-signer (or guarantor) to improve their overall creditworthiness. Also, getting a co-signer results in lower home loan interest rates.

You can co-sign for a loved one – spouse, child, or friend who hasa lower housing loan eligibility and help them secure a home loan. In most cases, a co-signer is someone with a relatively impressive credit profile. But some lenders ask for a co-signerjust to enhance the loan security.

However, a co-signer is not a co-borrower.Before you sign the dotted line, remember to consider the following things

The Risks Involved

First and foremost, you must be aware of the risks involved.In case the primary borrower fails or delays to repay the loan amount, the sole responsibility of thehome loanrepayment falls on your shoulders.A non-compliance to repay can lead to legal ramifications, loweredcredit score, and a negative entry in your credit report.

Impact on Your Credit Report

A co-signed home loanis recorded in your credit report – both the loan details and the repayment history.If the primary borrower defaults on thehouse loan EMIrepayment, it negatively reflects in your credit report as well.

Besides, any late repayments can lower your housing loan eligibility. Your futurehome loan applications may face rejection following a weak credit profile.

Lack of Benefits

As a co-signer, you cannot use the home loan amount personally. Unlike the primary borrower, youdo not have any access to the loan account, nor can you receive any tax benefits. Yet, the co-signed home loan will affect your credit report.

Debt-to-Income Ratio

Since a co-signed home loan shows up in your credit report, it can increase your debt-to-income ratio as your level of debt increases. This can negatively impact your creditworthiness.If your debt-to-income ratio is high, it can hinder your loan approval.Lenders also assess your co-signed home loan history to review your loan application.

Ready an Exit Strategy

Experts suggest that twelve monthsare enough for the primary borrower to build a reliable credit profile. Following this, you can ask the primary borrower to refinance the home loan and release you as the co-signer from the loan agreement.

Over to You

It is vital to understand the terms and liabilities of the home loan you are asked to co-sign.Do not co-sign if you have variable income or multiple obligations to avoidburdening your pocket. Remember to review the home loan agreement carefully, before signing on the dotted line.

Are you looking for a home loan? Financial Institutions today provide quick and easy home loans at competitive interest rates for better ROIs. Make sure to use Home Loan EMI calculator that helps you find your Interest and principal liability every month as per your loan amount and tenure.

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Is It Possible to Get Personal Loan for Self Employed With No Proof of Income?

Are you planning to get your home renovated? Do you want to take that vacation in Paris? Have you got medical bills that won’t stop coming? If you have answered yes to any of these questions, it is perhaps time to take a personal loan. These unsecured loans, offered by most banks and NBFCs at varying personal loan interest rates, can be used to finance a wide range of purchases and activities.

As with most loans, personal loans, too, come with specific documentation requirements, like salary slips, IT returns, etc. These documents, while readily available, can be difficult to procure for self-employed individuals owning small businesses. So, if you do not have a proof of income, can you apply for a personal loan? Read on to find out.

Getting a Personal Loan Without Proof of Income

Anyone, regardless of whether they have a proof of income, can apply for a personal loan and expect approval. Personal loan eligibility is not solely dependenton income proofs, and therefore even if you do not have one, you can look towards personal loans to address your monetary needs.

Tips for Taking a Personal Loan Without Income Proof

If it becomes clear that you will have to apply forpersonal loans without income proof,utilize the following tips.

  1. Maintain a good credit score

A credit score is one of the most significant factors deciding your personal loan eligibility with different lenders. If you do not have an income proof, maintaining a credit score of above 750 can be extremely beneficial.

  1. Use income from other sources while applying for the loan

If you or your household receives income from a variety of sources like rent, interest, etc., consider presenting their documents in place of Income Tax returns for your primary occupation. Seeing that you have more than one way to pay back the loan, banks and NBFCs will grant you finance more willingly.

  1. Try to find co-applicants or guarantors

If you do not have a proof of income, but someone in your immediate family does, then applying for the personal loan with a co-applicant has more chances of approval. Moreover, if you can ensure the presence of a guarantor while filling the application for personal loan for self-employed with no proof of income, it increases your approval chances manifold.

With the tips listed above, you should be able to successfully get approved for a personal loan for self-employed with no proof of income. For affordable personal loans with flexible repayment tenures, approach the financial institutions. The loan process is both online and offline, and you can use resources like personal loan emi calculator to check your tentative EMI.

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Qualities of Safe Payday Loans

A significant number of Canadians take out a payday loan every year. While these loans can be a savior in the most stressful moments, they can also trap you in a vicious cycle of debt if you aren’t careful with where you borrow and how you use the borrowed money.

So, the only way to be sure that you are getting a good deal is to borrow money from a reputable lender. Getting your payday loan from an online lender such as Prets Rapides guarantees you peace of mind when you need it most.

This post discusses some of the top qualities of safe online payday loan lenders you need to know.

1. BBB Accreditation

The Better Business Bureau is an organization that plays a critical role in helping consumers to identify legitimate businesses. It operates in the United States, Canada, and Mexico.

They can also help with mediation when there is a disagreement between customers and companies.

Before you complete that online application form, check out the potential lender’s BBB rating. You should also check out how many complainants past customers have filed against the lender and how they handled the issues.

2. No Hidden Fees

Some lenders are cunning and will always want to find a way of gaining maximum profits at your expense.  Even though the law requires all payday loan lenders to be transparent about their terms and conditions, some will still find a way to hide information from you.

Therefore, before you submit your loan application request, make sure the contract clearly outlines all forms of fees you need to pay throughout the loan period. If anything isn’t clear, ask for clarification from the lender or move on to the next lender.

Sometimes, hidden fees can accumulate really quickly, making it almost difficult to repay the loan on time.

3. Availability of Contact Information

This is particularly important for online lenders. Don’t just fill that application form blindly and submit it to the lender.

Check out their website to see if you can locate the lender’s contact information. If all you have is a generic contact form, send them a query and see how responsive they are before submitting your loan application.

Keep in mind that legitimate payday loan lenders don’t have an issue with sharing their physical address, phone number, or email address. Be sure to establish where the company is based or if they mainly operate online.

4. No Money Upfront

No legitimate and reputable payday loan lender will request money upfront. Genuine lenders know that you are already in a fix, and you need money to address the emergency.  Therefore, they will not ask for any money from you upfront.

If a potential payday loan lender asks you to pay them a processing fee upfront, let it serve as a red flag.  If anything doesn’t make sense, don’t think twice; move to the next lender.

In most cases, reputable payday loan lenders will process your loan and charge the origination/processing fee out of the loan proceeds. If you come across a lender who is unwilling to do so, they are probably scammers.

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How to Repay Your Personal Loan Quickly?

With the economic depression the country is currently going through, the expenses are higher compared to the income levels. This arises the need to apply for instant personal loans from banks or non-banking financial companies (NBFCs). Personal Loans are one of the best products for all kinds of financial assistance. They are often unsecured in nature i.e. you do not have to provide any collateral as security against the loan. Also, there are no restrictions on the utilization of loan funds. The maximum tenure allowed to repay personal loans is five years. Many banks and lending institutions also offer personal EMI calculators to organize loan repayments with ease. However, in such times many people find it difficult to repay the loan amount as the equated monthly instalments (EMIs) take a toll on their monthly incomes. However, repayment of instant personal loans can be less tedious if you follow the below steps towards lowering the loan burden. These include:

  • Personal Loan Balance Transfer

Transferring your high-interest instant personal loans to a low-interest loan opportunity helps in repaying your loan faster. However, this is possible when you enjoy a good credit score, thus, allowing you to save on your overall interest cost while also reducing the EMI loan amounts to be repaid. A balance transfer is a provision under which you can transfer your existing personal loan to a new lender for a better interest rate of offers on loans. The option works well if you want to get approved for a higher amount at a lower interest rate. With the personal loan balance transfer facility, your previous outstanding balance is completely closed, you’re offered a higher loan amount and a more flexible repayment tenure – all this at a lower interest rate. That said, it isn’t the best option if you want to close your personal loan early but it can still be considered as an acceptable option.

  • Full Prepayment Of Loan

If the loan repayment is done in full then it can be done relatively early into the tenure of the loan, a borrower tends to save a lot on the interest. A personal loan generally has a lock-in period of about 1 year after which the outstanding loan amount can be prepaid. Many banks will allow you to prepay your instant personal loans without any charges provided you pre-pay using your funds. As such, prepayment of your loans can bring down your monthly instalment burden without any additional charges. Most banks levy some charges on prepayment of the loan. Compare the rate of interest that you’ll save with the cost of prepayment and then decide accordingly. If your lending institution permits, you can also choose to make a part payment. It will help reduce your EMIs and tenure of the loan

  • Debt Repayment in Higher Interest Rates

The availability of multiple loans and credit card options resulted in an increasing number of people falling in a debt trap. An instant personal loan charges more interest than other loan repayment options on loans. To ensure timely repayment of all the loan amounts taken. Hence, it is important to prioritise debt repayment in higher interest rates. This means that the personal loans must be repaid before paying the EMIs of all other loans.

  • Increase Repayments with Rising in Income

Whenever there is a rise in your income or you get extra money with you you can opt to repay your loans faster by increasing the EMIs. Assuming that you get an 8% raise, you can easily increase your loan EMIs by 5%. If you raise the amount of your monthly personal loan instalment, it would not be wrong to say that the outstanding balance of your loan will decrease and you would be able to pay the complete amount and close your loan faster. Nevertheless, the monthly burden will be increased for a certain period but you can eventually end up paying your loan faster and be debt-free.

  • Lower Your Expenses

To reduce your loan burden, you need to make some lifestyle adjustments to accommodate your loan repayments and ensure you have enough money to pay higher EMIs. Cutting down on luxuries and unwanted spending can save a lot of money that can move towards paying loan EMIs. Diligent savings & investments right from the beginning will help create a good fall back for any expenses that would come up in future.

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