A collateral-free personal loan, when managed judiciously, is a great option for availing oneself of extra cash. It could be for various personal reasons, such as financing a wedding, home improvements or remodelling, moving from one city to another, paying medical bills, and debt consolidation. But while applying for a personal loan and procuring one is a fairly simple process, managing the monthly repayment – especially when you may find yourself financially hard-pressed in these pandemic-ridden times – is no mean task. You may inadvertently miss paying an EMI, which could, unfortunately, lead to a decrease in your credit score. If you are planning on applying for a personal loan or are having a difficult time paying your monthly EMIs, here are three useful tips for strategising and ensuring timely payments on your personal loan:
Draw up a Budget
Though you may not be used to it, preparing a monthly budget can help strategise your EMI's timely payment. Once you are mindful of where and how you spend your money, it will automatically cut down on frivolous expenses and save where needed. Luckily, we live in an age of technology, and you may always depend on budgeting apps to conveniently help you keep your monthly expenditure in check.
Make Timely Payments
Whenever you take a loan, make sure you pay the EMI on time. If necessary, you can automate payments to ensure that you don't miss out on making any EMI payments. This habit will help reduce the debt burden, interest payable, and penalties associated with late payments. In addition, it is advisable to pay the full amount instead of making the minimum EMI payment.
If you have multiple debts to repay, many experts recommend debt consolidation, i.e. rolling all monthly payments like credit card accounts and loans into one monthly personal loan payment. This will help you eliminate the hassle of multiple payments by making just one payment with a single associated interest rate every month. Occasionally, banks have attractive offers for consolidating existing loans and helping borrowers reduce the overall interest burden.
Personal Loan from IndusInd Bank
If you are in need of quick funds for whatever reason, you may always avail yourself of a personal loan from IndusInd Bank. Benefits of a personal loan from IndusInd Bank include competitive interest rates, a flexible loan tenure, simple documentation and processing, and quick disbursal. Free of the hassle of collaterals and guarantors, personal loans from IndusInd Bank are perfect for various personal requirements such as medical expenses, home renovation, and overseas education.
Apply for a personal loan online from IndusInd Bank today!