How to minimise EMIs burden on personal loans? Key factors to consider

A personal loan is an unsecured type of loan that does not require any collateral or security for meeting temporary requirements. Both borrowers and borrowers can opt for personal loans that are readily available from banks, NBFCs and other financial institutions. However, personal loans also have one of the highest interest rates compared to other types of loans. Hence, the EMI burden is usually higher in personal loans. Can you reduce your EMI burden?

Typically, personal loans are the most common loan products, and different segments of customers avail this type of loan for various purposes ranging from buying white goods, travel, buying a car, buying jewelry, wedding expenses, etc. Also, some. Lenders lend their personal money to cover the financial gap for buying a home, paying their own bills, home renovations, etc.

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According to Pramod Kathuria, Founder & President, of Easiloan, the EMI is calculated based on the loan amount, loan tenure, and interest rate. There are several important aspects that customers can consider to plan EMIs wisely or reduce existing personal loan EMIs. These are:

– Personal loans have higher interest rates than other loan products. Hence, it is very important to consider the important aspects in order to wisely plan the EMI or reduce the available personal loan EMI.

– Take a good loan. For home improvements or home purchases, there are home loans, home improvements, home loans available through new home loans, and top-up loans that customers can consider. Since the rate of interest (ROI) is low and the tenure is high the EMIs are significantly reduced in such loan products.

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– Auto loans for new or resale car purchases should be considered against personal loans to avoid high interest rates. The tenure for the car loan can be high increasing the EMIs. Also, often lenders use car dealers to come up with attractive schemes that reduce EMIs or offer financing to customers.

– Loan Modification – To reduce EMIs customers can transfer the money to a different lender who charges lower interest rates and offers longer tenure.

– Repayment or part of the loan amount will help to reduce the fixed EMI or may reduce the duration of the loan.

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– Adding an applicant to a loan can help save the best time and loan money and therefore can provide more options for customers.

The Easiloan CEO said the general wisdom for any loan product is to consider the right loan product for the purpose. Learn the different options available, take a good loan that allows customers to pay for monthly expenses and exit without any more stress or use a high interest credit company. Pay for EMIs on time and keep reducing high interest loans.

Disclaimer: The opinions and recommendations made above are those of the individual reviewers or marketing companies, and not of Mint.

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