Availing a personal loan is now a common practice today for meeting emergency expenses that tend to exceed beyond the affordable limit. A personal loan does not demand any collateral or security as it is an unsecured type of loan. Although the interest rates charged against secured loans are lesser than personal loans, the documentations are quite critical. Further, you pay much less interest for the money borrowed through personal loans than credit card interests. Above all these, applying for a personal loan is not a very complicated process.
These positive features have increased the tendency to ‘personal loan apply’ manifold over the years. Whether you want to spend on a lavish holiday, arrange a big fat wedding, make a big purchase, or meet a financial emergency, a personal loan serves as the most reliable instant source for proving hassle-free financial support.
But it is simultaneously true that availing of a personal loan puts some financial burden on the shoulders that need to be unburdened as soon as possible. When you take a personal loan, you must also plan a personal loan repayment option to save that extra money from getting drained regularly.
Here are options that you can seriously consider:
When you make a full settlement of the money that you have borrowed against an instant personal loan, you end the story there itself. There will be no more EMIs that need to be paid, no more interests that need to be incurred, and no extra money that needs to be spent. So, you can save the entire amount that you have paid as EMI until now, immediately after the full loan settlement.
However, every lending organization recommends a lock-in period before which you cannot opt for full settlement. Hence, it is recommended you consult the organization before taking this loan repayment decision.
You can also go for a partial settlement of your personal loan. With this option, you can bring down the amount of EMI that you pay per month compared to what you have been paying so far.
A partial settlement gives you the scope of bringing down the principal amount that you have borrowed. Eventually, it reflects upon the tenure and amount of EMI that you pay. Hence, you escape the vicious circle of EMI payment fast and start saving your money again.
Better CIBIL score
Faster repayment of your personal loan is also recommended for increasing your CIBIL score. A CIBIL score is a consumer’s credit score that depicts the consumer’s credit and loan repayment history.
In more simplified terms, the CIBIL score informs the lending organization about the loan amount you have taken, the tenure for clearing the outstanding amount, and the frequency at which you have successfully cleared your EMIs.
So, when you repay the money that has been borrowed through a personal loan, it serves as a positive point in your credit score. It promises to help you get faster personal loans with better interest rates and more relaxed repayment options in the long term. Thus, if you consider a personal loan EMI calculator, you will find that you can count on your long-term financial gains when you repay your personal loan faster.
Plan your personal loan repayment
A personal loan is undoubtedly among the most easily accessible solutions for accomplishing dreams with instant financial support and gives a sense of intense satisfaction. But repaying it in time is equally important for saving unnecessary drainage of your hard-earned money on EMIs. Thus, plan your personal loan repayment probabilities the moment you take a personal loan.